India’s Allied Blenders and Distillers (ABD) is betting big on premium liquor and a new India–UK trade agreement to significantly improve its profit margins over the next few years.
The company plans to raise its margins to around 18% by the 2028 financial year, up from 12.7% in fiscal 2025, Managing Director Alok Gupta said. A key part of that strategy is expanding its premium and prestige liquor portfolio and strengthening distribution beyond its traditional strongholds, as more affluent Indian consumers spend on higher-end spirits.
ABD also expects the upcoming India–UK free trade agreement to reduce costs. The deal will cut tariffs on imported bulk Scotch whisky to 75% from 150%, which should help improve margins in the medium term.
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The maker of Officer’s Choice whisky expects margins to improve by 200 basis points by the second half of fiscal 2027, with further gains thereafter.
To support its growth plans, ABD has invested 5.25 billion rupees (about $57.7 million) to set up its own bottling plants. In January, it committed an additional 1.1 billion rupees to expand in-house bottling capacity.
The premium liquor segment has already delivered strong growth for larger rivals such as Radico Khaitan and United Spirits, highlighting rising opportunities in India’s premium spirits market.
ABD’s luxury and super-premium portfolio under its ABD Maestro brand is expected to double sales in the fourth quarter, Gupta said.
The company has also seen shifting consumer trends since the pandemic. More people are socialising at home, and cocktails have become more popular. ABD has introduced two flavoured variants, and flavours now account for over 30% of its sales volumes.
For the December quarter, ABD reported a 16% increase in profit to 664.8 million rupees, even though revenue fell 17% due to changes in excise duties.
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