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Business Standard
30-07-2025
- Business
- Business Standard
Luxury now in mix as Allied Blenders & Distillers eyes a profitable run
Allied Blenders & Distillers, which owns brands such as Officer's Choice and Sterling Reserve, is focused on driving profitable growth in the coming quarters and expects gross margins to improve as it expands in the prestige and above (P&A) segments. The company also plans to launch two to three more luxury brands, after adding six in the previous financial year. 'As far as our business is concerned, the first fundamental is profitable growth. And profitable growth, for us, means a cross-margin focus across our entire portfolio, including our mass premium flavour range. We're also expanding in the P&A segment. Our P&A growth was about 44 per cent in the April–June quarter, so that's where we'll stay focused — identifying new product opportunities in both the prestige and luxury portfolios. That's our first big theme,' said Alok Gupta, managing director at Allied Blenders & Distillers, in an interview with Business Standard. He added that in 2023-24, the company had no luxury brands, whereas it now houses six, with plans to add two or three more. Within the prestige segment, Gupta said the company intends to introduce two more flavours. The second major focus, he explained, is improving gross margins. This includes tightening procurement and enhancing supply chain efficiencies, along with leveraging the UK–India free trade agreement (FTA). 'We are India's largest importer of bulk Scotch whisky as an Indian company. The FTA will have a bearing on our costs and, in turn, our margins. Add to that the backward integration projects we've undertaken — mostly in the supply chain — and we see margin improvements ahead,' Gupta said. He noted the company is also sharpening its approach to capital planning to improve profitability. Over the next two to three years, Gupta expects gross margins to improve by 300 basis points, which he said will flow directly into earnings before interest, tax, depreciation, and amortisation. On the FTA's impact, he said maximum retail prices (MRPs) will drop slightly, with bottles priced at ~2,000 and above seeing the most benefit. 'The luxury segment is already growing faster than any other category. We're seeing strong double-digit growth. With MRPs set to fall, particularly on bottled-in-India brands, the segment will likely expand further — and so will the size of the pie. This consumer is driven by experience and constantly seeks out the new. Our portfolio is only just falling into place here, and we're approaching this with an opportunity mindset,' he said.
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Business Standard
30-07-2025
- Business
- Business Standard
ABD targets profitable growth, to add luxury brands and boost margins
Allied Blenders & Distillers, which houses brands such as Officer's Choice and Sterling Reserve, is focused on driving profitable growth in the coming quarters and expects its gross margins to improve significantly as it pursues expansion in the prestige and above segments. The company also intends to add another two to three luxury brands, after launching six in the previous financial year. 'As far as our business is concerned, the first fundamental is profitable growth. And profitable growth is in terms of gross margin focus across our entire portfolio, including our mass premium flavour, and expansion of the prestige and above (P&A) segment. Our P&A growth is about 44 per cent in the quarter (April–June), so we will focus on this segment, identifying new product opportunities within the prestige segment and the luxury portfolio. The first large theme is really profitable growth,' Alok Gupta, managing director, Allied Blenders & Distillers, told Business Standard in an interview. He added that in FY24, the company did not have any luxury brands and now houses six, with plans to add two to three more. In the prestige segment, Gupta said the company also intends to introduce two more flavours. He further explained that the second theme is to improve gross margins by focusing on procurement, supply chain efficiencies, and leveraging the UK–India free trade agreement (FTA). 'We are India's largest importer of bulk Scotch as an Indian company. This will impact our costs, which will improve our gross margins. Also, the backward integration projects we have undertaken are largely focused on the supply chain,' Gupta said. He added that the company will also prioritise capital planning to increase profitability. Gupta said he expects a 300 basis point improvement in gross margins over the next two to three years, which will flow down to EBITDA (earnings before interest, tax, depreciation and amortisation). On the UK–India FTA, he said maximum retail prices (MRPs) will drop marginally, especially for bottles priced at Rs 2,000 and above, which will benefit from the agreement. 'The luxury segment is already growing faster than any other segment. We are seeing significantly higher double-digit growth in this category. We believe that with a reduction in MRPs, especially on bottle-India brands, the segment will expand further and therefore the size of the pile will become bigger. This consumer is essentially experience driven and constantly looking for what's new. Our portfolio has just about come into place in the segment, and we are seeing it from an opportunity mindset,' Gupta added.
Business Upturn
13-05-2025
- Business
- Business Upturn
Allied Blenders and Distillers shares rise 4% ahead of board meet to consider fundraise
By Aditya Bhagchandani Published on May 13, 2025, 10:18 IST Shares of Allied Blenders and Distillers Ltd surged 4.09% to ₹366.50 in Monday's trade, hitting an intraday high of ₹366.60 on the NSE. The rally comes ahead of a key board meeting scheduled for Thursday, May 15, 2025. The board is set to consider fundraising through multiple routes, including equity shares, convertible securities, warrants, and debentures. The capital may be raised via public issues, rights issues, preferential allotments, private placements, or qualified institutional placements (QIPs), in one or more tranches. Additionally, the company will announce its audited financial results for the fiscal year ended March 31, 2025. Allied Blenders and Distillers, India's third-largest spirits company, is known for popular brands such as Officer's Choice Whisky and Sterling Reserve. The company reported a strong performance in Q3 FY25, posting a consolidated net profit of ₹57.47 crore compared to a net loss of ₹4.42 crore in the same period last year. Net sales grew 8.8% year-on-year to ₹973.94 crore. Investors are optimistic about the upcoming board announcements, driving the stock's positive momentum. The company currently commands a market capitalization of ₹102.35 billion. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
