Allied Blenders and Distillers has received approval from board of directors to enter into Shareholders’ Agreement and Share Purchase Agreement with the existing Shareholders of Kion Blenders Industries (KION), to acquire up to 50% of paid-up Share Capital of KION from its existing Shareholder. Further, in terms of Shareholders’ Agreement, KION would become a Subsidiary of the Company.

The proposed acquisition is aligned with the company’s growth strategy and is intended to enhance distillation capacity across key markets. The project is expected to improve margins and strengthen supply security through the establishment of a 200 KLPD dual-mode distillery (producing ENA/Ethyl Alcohol and Ethanol) to be set-up by KION at Vizianagaram, Andhra Pradesh, with a planned investment of around Rs 300 crore. The company and the other Shareholder will invest up to Rs 45 crore, each, in tranches, while the balance project funding will be raised through debt at market-benchmarked rates, structured over the project execution timeline.

Allied Blenders and Distillers is an Indian-made foreign liquor company. The company offers four Indian-made foreign liquor categories: whisky, brandy, rum, and vodka.