Mumbai: Allied Blenders and Distillers has approved a total capital contribution of up to ₹125 crore to its subsidiary Minakshi Agro Industries LLP for setting up a new malt distillery-cum-maturation warehouse in Aurangabad, Maharashtra. The investment includes up to ₹115 crore for the project and an additional ₹10 crore to meet cost overruns in ongoing projects.
The proposed Aurangabad facility will have an annual production capacity of approximately 3 million bulk litres (BL) of malt spirits. The project is targeted for commissioning by Q3 FY28 and is part of Allied Blenders’ broader strategy to expand its premium spirits portfolio and strengthen its in-house production capabilities.
Separately, the company has reportedly received a licence to manufacture around 4.4 million litres of malt spirits annually at its Rangapur facility in Telangana, according to the source information. This licence detail has not been independently verified.
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The investment comes as Allied Blenders continues to focus on premiumisation and backward integration. By developing captive malt distillation and maturation capacity, the company aims to strengthen its capabilities in the premium whisky segment while reducing its dependence on external sourcing for key production requirements.
Allied Blenders has also reported strong momentum in its Prestige & Above (P&A) portfolio. P&A sales volume increased 10.7% year-on-year to 4.4 million cases in Q1 FY27, highlighting the growing contribution of premium products to the company’s business.
The company’s consolidated net sales for Q1 FY27 stood at ₹978.9 crore, representing a 6.1% year-on-year increase. The performance comes as India’s alcoholic beverages market continues to witness a shift towards premium and super-premium spirits, including Indian single malts and premium Indian-made foreign liquor.
The Aurangabad project is expected to add to Allied Blenders’ malt production and maturation capabilities and support the company’s plans to expand its premium whisky portfolio. The facility will also provide greater control over the production and maturation process as the company increases its focus on higher-value spirits.
Allied Blenders has made several strategic moves to strengthen its operations in recent months. On August 19, 2026, India Ratings and Research upgraded the company’s long-term bank facilities to IND AA- with a Stable Outlook, citing factors including its backward integration initiatives. On August 3, 2026, the company also received the final NCLT order approving the amalgamation of two wholly owned subsidiaries with the parent company.
The development comes against the backdrop of increasing premiumisation across India’s alcobev industry, with consumers showing greater interest in premium whiskies, single malts and differentiated spirits. Allied Blenders’ investment in malt distillation and maturation capacity represents a significant expansion of its production infrastructure as it seeks to build a stronger presence in the premium spirits segment.
The progress of the Aurangabad facility, including construction and commissioning timelines, will remain important as the company moves towards its Q3 FY28 target. Regulatory approvals, project execution and raw material costs will also remain key factors for the successful expansion of its malt distillery operations.
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