Mumbai: Japanese beverage major Suntory Holdings is reportedly in early-stage discussions to acquire a minority stake in Allied Blenders and Distillers, the Indian spirits company behind Officer’s Choice whisky, as the Japanese group looks to expand its presence in India’s fast-growing whisky market.
According to a report by The Economic Times, the discussions involve a potential strategic partnership under which Suntory could acquire around 10–15% of Allied Blenders’ equity. The proposed tie-up could combine Suntory’s premium international spirits portfolio with Allied Blenders’ extensive presence across India’s mass and mid-premium whisky segments.
Suntory is also evaluating potential distribution and manufacturing synergies with Allied Blenders. A strategic investment in the Indian company could provide Suntory with greater access to the country’s mass-market whisky segment, where its presence is currently smaller compared with its established premium spirits business.
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Allied Blenders, controlled by promoter Kishore Chhabria, is one of India’s largest listed spirits companies. The Mumbai-based company has a market capitalisation of around ₹20,000 crore and operates 38 manufacturing facilities. The company raised approximately ₹1,500 crore through its initial public offering in 2024.
The proposed transaction is expected to be primarily structured as a primary investment, with promoters potentially diluting part of their holding to bring Suntory into the company. The Economic Times report also said the promoters could potentially consider transferring a majority stake to Suntory over the longer term. However, the discussions are at an early stage and no final agreement has been reached.
The reported Suntory discussions come shortly after Bina Kishore Chhabria, a promoter of Allied Blenders and Distillers, sold a 1.96% stake in the company for approximately ₹357.6 crore through an open-market transaction. The sale followed the company’s disclosure that a promoter intended to sell shares to meet the Securities and Exchange Board of India’s minimum public shareholding requirements.
Following the transaction, Bina Chhabria’s holding in Allied Blenders declined to 56.24% from 58.20%, while the combined holding of promoters and promoter-group entities fell to 78.95% from 80.91%. The recent promoter stake sale and the reported discussions with Suntory are separate developments, with the proposed Japanese investment still under consideration.
Suntory has been seeking to strengthen its position in India and narrow the gap with global spirits companies such as Diageo and Pernod Ricard. According to the Economic Times report, Suntory currently generates around $150 million in annual sales from India.
India is the world’s largest whisky market by volume, with sales estimated at around 260 million cases in 2025. Diageo and Pernod Ricard also count India among their key global markets, making the country strategically important for international spirits companies seeking long-term growth.
Suntory already has a significant presence in India’s premium spirits segment through brands such as Yamazaki, Hibiki, Toki and Jim Beam. Its India-made Oaksmith whisky targets the mass and mid-premium categories, while the company also owns Scotch whisky brand Teacher’s.
The Japanese spirits group reportedly holds around 95% of India’s Japanese whisky segment and approximately 44% of the American whiskey category, according to the Economic Times. Suntory operates a manufacturing facility in Rajasthan and works with third-party bottling partners in Goa, Maharashtra, Madhya Pradesh and Telangana.
Suntory established Suntory India around two years ago to explore opportunities across beverages and wellness. The company has also previously explored acquisitions in the Indian spirits sector. Last year, Suntory was reportedly in discussions to acquire Imperial Blue from Pernod Ricard, although those talks did not progress after differences over valuation, according to people cited in the Economic Times report.
If the proposed Allied Blenders investment moves forward, the partnership could give Suntory access to a broader domestic distribution network and greater exposure to India’s mass and mid-premium whisky categories. For Allied Blenders, a strategic association with Suntory could potentially provide access to international brands, technology, manufacturing expertise and premiumisation opportunities.
For now, however, the proposed 10–15% stake acquisition remains at a preliminary discussion stage. The final investment size, transaction structure, ownership arrangements and any potential long-term change in promoter control have yet to be decided
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