Allied Blenders says it is still keen to buy Tilaknagar

Allied Blenders and Distillers, India's third-largest alcoholic spirits manufacturer, remains keen on buying out smaller rival Tilaknagar Industries Ltd and talks are continuing in this respect, Allied Blenders vice-chairman and chief executive Deepak Roy confirmed in Kolkata on Tuesday.

The deal could be valued between Rs700 crore and Rs1,000 crore, he said, adding that Tilaknagar will be a great acquisition for his company as its portfolio would complement that of ABD's.

Tilaknagar was carrying a total debt of Rs677 crore for the fiscal year ended March 2013. It has been keen to rope in investors to reduce its debt, including by offloading a stake.

The acquisition will give Allied Blenders a strong foothold in the brandy market, and consequently a good presence in the southern part of the country, as that region is the biggest market for brandy in India. The Mansion House brand from the Tilaknagar stable is the world's second-best-selling brandy label.

Roy said Allied Blenders is in talks with private equity firms TPG and Carlyle for raising funds. "We shall select one in the next few weeks, depending on the valuation," he said.

Roy was in the West Bengal capital for the launch of Officer's Choice Black, in market parlance a 'semi-premium plus whisky' in the category of Royal Stag.

"We would be happy to have it (Tilaknagar) in our portfolio. This is our first choice for acquisition but we have other options as well. If for any reason the TIL deal fails, then only we look for others," Roy said.