Allied Blenders Plans Foray into Single Malt Whisky, Invests in New Distillery

Allied Blenders Plans Entry into Single Malt Whisky

Allied Blenders and Distillers (ABD) is preparing to expand its presence in India's premium and luxury spirits market with a planned foray into single malt whisky. The company is establishing a dedicated single malt distillery at Rangapur in Telangana as part of its broader premiumisation strategy.

The move comes as India's premium whisky market continues to attract domestic and international players, with consumers increasingly showing interest in higher-end spirits.

₹75 Crore Investment in Single Malt Distillery

ABD has allocated approximately ₹75 crore for its integrated malt distillery. The facility is designed with a captive capacity of around 4 million litres per annum (MLPA) and is being developed alongside the company's existing large-scale distillery at Rangapur.

The company had earlier indicated that the facility was expected to become operational toward the end of FY26. Management has also said that the company's own Indian single malt could enter the market within the next few years as product development progresses.

₹115 Crore Investment Is for PET Bottle Manufacturing

While the headline investment figure of ₹115 crore is associated with ABD's expansion plans, it is important to distinguish it from the single malt investment.

The company invested around ₹115 crore in a captive PET bottle manufacturing facility at Rangapur, Telangana. The plant has an annual capacity of approximately 615 million bottles and is intended to meet a substantial share of ABD's internal packaging requirements.

The facility is expected to improve packaging cost efficiency and strengthen the company's control over an important part of its supply chain.

Premiumisation Drives ABD's Growth Strategy

The single malt project is part of ABD's broader strategy to move further into the Prestige & Above, Super-Premium and Luxury segments.

The company's portfolio already includes premium whisky brands, while its ABD Maestro platform has expanded into whisky, gin, vodka and rum. During FY26, Prestige & Above products accounted for 47.2% of the company's overall volumes and 57.3% of sales value, according to its annual report.

The company has also been expanding its luxury portfolio through new product launches and premium offerings.

India’s Single Malt Market Offers Growth Opportunity

India's single malt whisky market has emerged as an attractive premium spirits category. Rising consumer incomes, premiumisation and greater interest in Indian-made luxury spirits have created opportunities for domestic producers.

For ABD, entering the segment allows the company to leverage its existing manufacturing, distribution and brand-building capabilities while moving toward higher-value products.

Backward Integration to Improve Margins

Alongside its single malt plans, ABD has been investing heavily in backward integration and manufacturing capabilities.

The company is expanding its Extra Neutral Alcohol production capacity and has established the PET bottle manufacturing facility to improve supply security and cost efficiency. Its strategic investments are aimed at strengthening margins while supporting the company's premiumisation ambitions.

This approach could help ABD gain greater control over key inputs and reduce dependence on external suppliers.

ABD Targets Higher-Margin Premium and Luxury Segments

The company's expansion into single malt whisky reflects a broader shift in India's alcoholic beverages industry toward premium and luxury products.

ABD's latest investor presentation highlights its ambition to increase the contribution of Prestige & Above products and improve EBITDA margins through premiumisation, supply-chain integration and operational efficiencies.

A successful single malt launch could therefore become an important component of the company's long-term premium portfolio.

What the Single Malt Foray Means for Allied Blenders

The planned entry gives ABD an opportunity to diversify beyond its established mass-premium and mainstream whisky businesses.

A locally produced single malt could help the company compete in a segment traditionally dominated by established Indian and international premium whisky brands. However, building a successful single malt brand will require long-term maturation, strong product positioning and sustained investment in marketing and distribution.

Conclusion

Allied Blenders and Distillers is preparing to enter India's single malt whisky market through a dedicated distillery in Telangana. The company has earmarked ₹75 crore for the single malt facility, while its ₹115 crore investment relates separately to a captive PET bottle manufacturing plant.

The twin investments form part of ABD's broader strategy to strengthen backward integration, improve margins and expand its presence in premium and luxury spirits. With India's premium whisky market continuing to develop, the company's single malt initiative could become an important part of its long-term growth strategy.