Allied Blenders Commits ₹125 Crore to New Aurangabad Malt Distillery Targeting Q3 FY28
Allied Blenders and Distillers has approved a total capital contribution of ₹125 crore to its subsidiary Minakshi Agro Industries LLP to establish a new malt distillery and maturation warehouse in Aurangabad, Maharashtra, with completion targeted for Q3 FY28 as part of the company's broader strategy of margin expansion through backward integration and premiumisation.
🏢 Allied Blenders Approves ₹125 Crore for Aurangabad Malt Distillery and Cost Overruns
Allied Blenders and Distillers approved a total capital contribution of up to ₹125 crore to its subsidiary Minakshi Agro Industries LLP, with ₹115 crore directed toward setting up a new malt distillery in Aurangabad, Maharashtra, and an additional ₹10 crore to cover cost overruns in ongoing projects. The new distillery will have an annual production capacity of approximately 3 million bulk liters and is targeted for commissioning by Q3 FY28. Separately, the company reportedly secured a license to produce 4.4 million liters of malt spirits annually at its Rangapur facility in Telangana, though SAHI noted this was as stated in the source alert and not independently verified. Allied Blenders reported consolidated Q1 FY27 net sales of ₹978.9 crore, representing 6.1 percent year-on-year growth. The ₹115 crore capital infusion covers both the core construction costs for the distillery and the maturation warehouse. According to SAHI's analysis, the investment aligns with Allied Blenders' long-term strategy of margin expansion through backward integration and premiumisation, as the company moves to increase its own-produced malt spirit capacity rather than relying on third-party supply at a time when demand for premium whisky segments continues to grow in India's spirits market. [1]
🏢 Management Committee Approves September 11 Investment with External Debt Option
The Management Committee of Allied Blenders and Distillers' Board of Directors approved the ₹125 crore capital contribution to subsidiary Minakshi Agro Industries LLP on September 11, 2026, with the funding structured as additional capital contribution or financial assistance, potentially supported by external debt with a corporate guarantee. The approved ₹115 crore allocation covers the construction of a new malt distillery and maturation warehouse in Aurangabad, Maharashtra, with an annual planned capacity of approximately 3 million bulk liters. The additional ₹10 crore approved for cost overruns in existing projects is attributed to increased prices of key metals and marginal expansions required to accommodate longer automated bottling lines. The new Aurangabad distillery is targeted for completion by Q3 FY28. Scanx reported that the company's total investment is structured to provide Minakshi Agro with the liquidity needed to see the Aurangabad facility through to commissioning. The project is part of Allied Blenders' broader expansion of production capacity in Maharashtra, which the company has identified as a key manufacturing base for its growing portfolio of malt and blended spirit brands serving both the domestic and export markets. [3]
Sources: [1] Sahi · [3] scanx.trade