Allied Blenders and Distillers Limited IPO

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They are the largest Indian-owned manufacturer of Indian-made foreign liquor (IMFL) and the third-largest IMFL company in India based on annual sales volumes from Fiscal 2014 to Fiscal 2022, as per the Technopak Report. Their company is one of the only four spirits companies in India with a pan-India sales and distribution network, and they are also a leading exporter of IMFL. They had an estimated market share of 11.8% in the Indian whisky market for Fiscal 2023.

Flagship and Major Brands

Their flagship brand, Officer’s Choice Whisky, launched in 1988, marked their entry into the mass premium whisky segment. Officer’s Choice Whisky has consistently been one of the top-selling whisky brands globally in terms of annual sales volumes from 2016 to 2019, according to the Technopak Report.

Over the years, they have diversified their product offerings across various categories and segments. As of August 31, 2023, their portfolio included 17 major brands across whisky, brandy, rum, and vodka. Notable brands within their portfolio include:

i. Officer’s Choice Whisky        ii. Sterling Reserve         iii. Officer’s Choice Blue        iv. ICONiQ Whisky

Several of these brands, such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky, are recognized as ‘Millionaire Brands’—brands that have sold over a million 9-litre cases in a single year.

Market Presence and Distribution

Their extensive distribution network spans across India, providing them with a pan-India footprint. This broad distribution capability not only strengthens their presence in the domestic market but also supports their leading position as an exporter of IMFL. Their robust distribution infrastructure ensures that their products are readily available across various markets, catering to a wide range of consumer preferences.

Conclusion

Their company stands out as a leader in the Indian IMFL industry, driven by a strong portfolio of popular brands and an extensive distribution network. With flagship brands like Officer’s Choice Whisky and other ‘Millionaire Brands’, they continue to dominate the market and expand their reach both domestically and internationally. Their commitment to excellence, quality, and consumer satisfaction positions them for continued growth and success in the competitive IMFL landscape.

Objects of the Allied Blenders and Distillers Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following objects: i. Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company and ii. General corporate purposes. Total number of share issue :- i. Fresh issue is 35,587,189 shares, ii. Offer for Sale is 17,793,594 shares.
DRHP of Allied Blenders and Distillers Limited IPO
RHP of Allied Blenders and Distillers Limited IPO

Allied Blenders and Distillers Limited IPO Details:

Open Date: Jun 25 2024
Close Date: Jun 27 2024
Total Shares: 53,380,783
Face Value: ₹ 2 Per Equity Share
Issue Size: 1,500.00 Cr.
Lot Size: 53 Shares
Issue Price: ₹ 267 - 281 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 02 2024

Promoters And Management:

Kishore Rajaram Chhabria is a Chairman and Non-Executive Director on the Board of the Company. He holds a bachelor’s degree in commerce from University of Bombay. Prior to joining the Company, he was previously associated with Shaw Wallace & Company Limited (as a managing director) and B.D.A. Limited. Bina Kishore Chhabria is a Non-Executive Director and Co-Chairperson on the Board of the Company. She has not received any formal education. She has been a Director on the Board of the Company since 2010. Resham Chhabria Jeetendra Hemdev is a Whole-Time Director (Vice Chairperson) on the Board of the Company. She has passed the third year of bachelor’s degree in commerce (three year integrated degree) from University of Mumbai. She has experience in various fields, including business strategy for organization.

Financials of Allied Blenders and Distillers Limited IPO:

Particulars ( In Crore )
2021
2022
2023
9M-FY24
Revenue from Operations 6,379 7,197 7,106 5,911
Other Income 19 11 11 4
Total Revenue 6,398 7,208 7,117 5,915
Cost of materials consumed 1,390 1,635 1,996 1,636
Purchases of stock-in-trade 4 5 6 4
Change in Inventories 27 -11 -27 -11
Excise duty 4,030 4,511 3,959 3,351
Employees Benefit Expenses 172 193 186 127
Other Expenses 561 667 802 621
EBITDA 213 208 196 186
OPM (%) 3.33% 2.88% 2.75% 3.15%
Depreciation & Amortisation 59 59 55 39
EBIT 154 149 141 147
Finance Cost 142 145 135 128
PBT 13 4 6 14
Tax 10 2 4 10
PAT 3 1 2 4
NPM (%) 0.04% 0.02% 0.02% 0.07%
No.of Shares 27.97 27.97 27.97 27.97
EPS 0.08 0.05 0.05 0.15

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Allied Blenders and Distillers Limited 7,106 2 0.05 4,909.2 281 7,860
United Spirits Limited 10,612 1,126 15.62 66.0 1,290 93,828
Radico Khaitan Limited 3,133 204 15.29 96.4 1,843 24,648
Globus Spirits Limited 2,109 122 42.43 23.7 790 2,277
* All the data is as per FY23.

Recommendation on Allied Blenders and Distillers Limited IPO:

Review and Recommendation of Allied Blenders and Distillers by team IZ is 3/10. 1. They are the largest Indian-owned and Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, measured by annual sales volumes from Fiscal 2014 to Fiscal 2022. Their company is one of only four spirits companies in India with a pan-India sales and distribution network and is a leading exporter of IMFL. As of Fiscal 2023, they held an estimated market share of 11.8% in the Indian whisky market. 2. Their product portfolio included 16 major brands of IMFL across whisky, brandy, rum, and vodka. Notable brands such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky are recognized as ‘Millionaire Brands,’ each having sold over a million 9-litre cases in a year. 3. Export Markets They have exported their products to 14 countries, including markets in North America, the Middle East, Africa, Asia, and Europe. Their export operations are primarily organized through importers or distributors, with whom they have established distribution agreements. Their diversified product portfolio enables them to cater to various international consumer tastes and preferences, thereby boosting their export sales. 4. Competitive Landscape The Indian alco-beverage market is highly competitive, with strong players across different segments, including IMFL, beer, and wine. Their main competitors in the IMFL market include United Spirits, John Distilleries, Radico Khaitan Limited, and Tilaknagar Industries. They face competition from larger competitors with significant resources and advantages in economies of scale and scope. They also anticipate competition in both existing markets and new markets where they plan to expand and currently have limited or no experience. 5. The Revenue has Increased from Rs.6,379 Crores in FY21 to Rs.7,106 Crores in FY23. 6. The EBITDA has Decreased from 213 Crores in FY21 to 196 Crores in FY23. 7. The PAT has Decreased from 3 Crore in FY21 to 2 Crore in FY23. 8. As per FY23, CFO/EBITDA is 1.02, As per FY24, EPS is 0.20, 9. Market Capitalization is 7,860 Crores & P/E is 1393.8x based on FY24.

Lead Manager of Allied Blenders and Distillers Limited IPO:

  1. ICICI Securities Limited
  2. ITI Capital Limited
  3. Nuvama Wealth Management Limited

Registrar of Allied Blenders and Distillers Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Allied Blenders and Distillers Limited 394-C Lamington Chambers, Lamington Road, Mumbai– 400 004, Phone: +91 22 43001111 Email: complianceofficer@abdindia.com Website: https://www.abdindia.com/

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