ABD TO ACQUIRE UP TO 50% STAKE IN KION BLENDERS TO BOOST DISTILLATION CAPACITY

Allied Blenders and Distillers has approved a plan to acquire up to a 50 per cent stake in Kion Blenders Industries, a company building a 200 KLPD distillery in Andhra Pradesh. The move aims to strengthen supply security, expand distillation capacity and support ABD’s long-term growth strategy in key markets.

Allied Blenders and Distillers (ABD) has approved an agreement to acquire up to a 50 per cent stake in Kion Blenders Industries Private Limited (KION), in a move aimed at strengthening its distillation capacity and securing long-term supply.

The decision was cleared by the Management Committee of ABD’s Board of Directors at a meeting held on March 2, 2026. In a regulatory filing, the company said it would enter into a Shareholders’ Agreement and Share Purchase Agreement with the existing shareholders of KION for the acquisition of up to half of the company’s paid-up share capital.

Following the execution of the shareholders’ agreement, KION will become a subsidiary of ABD and consequently a related party of the company.

KION was incorporated on August 25, 2025, and is currently setting up a 200 kilo litres per day (KLPD) dual-mode distillery in Vizianagaram district of Andhra Pradesh. The project is expected to involve an investment of around Rs 300 crore.

The proposed acquisition forms part of ABD’s broader strategy to expand its distillation footprint across key markets, improve operating margins and enhance supply security for its operations.

ABD has capped its total investment in KION at Rs 45 crore, which will be infused in tranches. The initial acquisition is expected to be completed by June 2026, subject to customary approvals.

The distillery project itself is targeted for commissioning by the fourth quarter of the financial year 2027–28, depending on the receipt of regulatory clearances and progress of construction.

KION’s planned business activities include refining, distilling, rectifying, fermenting, blending, bottling, packaging and storing alcohol products. The company will also engage in the distribution, import, export and trading of Extra Neutral Alcohol (ENA), ethanol, industrial and potable alcohol, rectified spirit and other alcohol-based products.

For ABD, the partnership is expected to support its long-term growth ambitions by strengthening its supply chain and creating additional production capacity to meet rising demand in the spirits market.