ABD predicts margin gains from India-UK trade deal
Suneera Tandon The maker of Officer's Choice whiskey, one of India's top-selling whiskey brands, imports bulk scotch worth ₹ 100 crore annually. The FTA is set to reduce duties on these imports, positively impacting ABD's cost structure, says managing director Alok Gupta Alok Gupta, managing director, ABD Gift this article
NEW DELHI :Mumbai-based liquor maker Allied Blenders and Distillers Ltd anticipates its operating margin to improve by 2 percentage points once the India-UK free-trade agreement is implemented.
Mumbai-based liquor maker Allied Blenders and Distillers Ltd anticipates its operating margin to improve by 2 percentage points once the India-UK free-trade agreement is implemented.
The maker of Officer's Choice whiskey, one of India's top-selling whiskey brands, imports bulk scotch worth ₹ 100 crore annually. The FTA is set to reduce duties on these imports, positively impacting ABD's cost structure.
"We are one of the largest importers of bulk scotch in India, if you take the multi-nationals out. Under the FTA, customs duties will come down over a period of 10 years; this alone should have about a 200 basis point impact on our margins," Alok Gupta, managing director of ABD, said in an interview with Mint on Wednesday. 'This is pretty significant, so we are looking forward to the final contours of the FTA and its implementation."
This duty cut applies to both bottled-in-origin (BIO) and bulk Scotch, which is used in Indian made foreign liquor (IMFL) blends.
'As far as bottled (Scotch) is concerned, we do expect prices to fall by mid-single digit. That is assuming the entire benefit is passed on to the consumer. We will definitely see some reduction in end consumer prices. We import roughly north of ₹ 100 crore of bulk scotch, on which the current duty is 150% duty; this is expected to come down. As our portfolio grows, the quantum of savings will only get better. It should have about a 200 basis point impact on our EBITDA."
ABD operates across the whisky, brandy, rum, vodka, and gin segments, with prominent brands including mass-market brand Officer's Choice Whisky and Sterling Reserve Premium Whiskies. Its manufacturing network comprises 37 units: 9 owned bottling units, two owned distilleries, and 26 non-owned manufacturing units. Premium push
ABD has also been expanding its premium portfolio beyond mass-market whiskey, which forms the majority of its business. ABD Maestro, ABD's luxury spirits subsidiary, commenced operations in April 2025. Through its partnership with Roust Corporation, ABD Maestro introduced Russian Standard Vodka to India earlier this year.
In the June quarter, the company's total income grew 0.8% on-year to ₹ 1,783 crore, with income from operations rising 22.5% to ₹ 930 crore. Profit surged from ₹ 11 crore in the same period last year to ₹ 56 crore. Cautious optimism
Overall, the company sold 8.5 million cases, up 17.2% on-year, driven by strong growth across regions due to high consumer demand for its core brands.
Earlier this year, the Mumbai-based company acquired the intellectual property rights and brands of Fullarton Distilleries Pvt Ltd for ₹ 39.50 crore. This acquisition includes popular brands like Woodburns whisky, Pumori small batch gin, and Segredo Aldeia rum. ABD also announced a ₹ 9 crore investment to acquire a 51% stake in Good Barrel Distillery Pvt Ltd, a startup known for its premium rum brand, Rock Paper Rum.
Gupta said the June quarter started on a better note, citing income tax relief and prices coming down in many markets. 'This year should be actually better than last year in terms of both value and volume growth," he said. Also Read: Decathlon plans $3 billion of Indian sourcing by 2030
On future acquisitions and deals, Gupta said, "We are in a good place in terms of our portfolio. As far as the luxury segment is concerned, we have built our portfolio in an asset-light manner. We continue to focus on interesting opportunities in an asset-light manner." Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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