By Komal Salecha
Feb 20 (Reuters) - Allied Blenders and Distillers (ABD) is banking on premium spirits and the India–UK trade deal to boost margins to about 18% by fiscal year 2028, its managing director told Reuters.
The liquor maker has been expanding its premium and prestige portfolio while widening distribution beyond its core markets, as India's growing base of affluent consumers splurge on higher-end spirits.
ABD also expects potential cost savings from the India–UK free trade pact, which will lower the tariff on imported bulk Scotch whiskey to 75% from 150%, supporting margins over the medium term, MD Alok Gupta said.
The company, known for its Officer's Choice whisky, expects margins to increase by 200 basis points by the second-half of fiscal 2027, with further gains after that. Its core earnings margin stood at 12.7% in fiscal 2025.
To support growth, the company has already invested 5.25 billion rupees ($57.7 million)to set up its own bottling units and allocated an additional 1.1 billion rupees in January to expand its in-house bottling capacity.
The premium spirits segment has been a key growth driver for larger peers such as Radico Khaitan and United Spirits, indicating increasing opportunities in the sector.
ABD's luxury and super-premium business under the ABD Maestro brand is expected to double sales in the fourth quarter, Gupta said.
Post-COVID, the company has also seen more socialising at home and cocktails becoming mainstream, he added. "We've launched two flavoured variants and today more than 30% of our (sales) volumes come from flavours."
For the December quarter, the company reported a 16% rise in profit to 664.8 million rupees, even as revenue slipped 17% due to changes in excise duties.
($1 = 90.9760 Indian rupees)
(Reporting by Komal Salecha in Bengaluru; writing by Chandini Monnappa; Editing by Sonia Cheema)
