Allied Blenders and Distillers Pvt. Ltd (ABD) has recently acquired a grain distillery unit in Telangana. The first grain distillery in ABD’s list, Shasta Bio Fuels has a capacity to produce 160 KL of alcohol per day. This deal has cost ABD approximately 200 crores.
According to official sources, the company will make an additional investment of ₹ 50 crores to upgrade the distillery by introducing state of art technology to improve efficiency of operation, value added byproducts and effluent treatment in the next 18 months. The acquisition is in line with ABD’s long term strategy of backward integration for security of supply of essential Raw materials-ENA and strengthening own production capabilities”. Shasta Bio Fuels is situated on National Highway No. 7 – Hyderabad – Bangalore highway on the bank of River Krishna at a distance of about 150 KM from Hyderabad Airport. This Plant will create employment and business opportunities in the state of Telangana. Shasta also has a captive power generation plant of 6.5 MW, which has some surplus power for export to state grid after meeting its own power needs.
Deepak Roy Executive Vice Chairman – Allied Blenders and Distillers Pvt. Ltd said,“We at ABD are delighted with the acquisition of Shasta Bio Fuels in Telangana. This is the first Grain distillery of the company .With this acquisition we will be extending our presence in the newly formed state of Telangana. This acquisition is in line with ABD’s strategy of strengthening in house production capabilities”.
ABD claimed to be third largest spirits company in the country has been on an acquisitions drive since last two years. In the past it has acquired two units, Wales Distillers in West Bengal and Unokoti Distillers in Tripura. It is currently in talks to acquire a few other bottling units.
ABD achieved sales of 32 million cases in FY 14-15 which grew at exponential rate of 29% in FY’15 while the IMFL industry grew by 3% over the same period. ABD sales have grown at a CAGR of 21% over the last 5 years, which makes it one of the fastest-growing spirits companies in India. In the coming five years the company’s capex is expected to be in the region of ₹1000 crores.