Allied Blenders and Distillers Limited has announced the acquisition of up to a 50% stake in Kion Blenders Industries Private Limited, with a total investment not exceeding ₹45 crore, as part of its strategy to strengthen its distillation and alcohol manufacturing footprint.
In a regulatory filing under Regulation 30 of the SEBI Listing Regulations, the company said the investment will be made in tranches and will include a primary investment of ₹50,000 for a stake of up to 50% (5,000 equity shares of ₹10 each), with the overall commitment capped at ₹45 crore.
Kion Blenders Industries Private Limited was incorporated on August 25, 2025, and operates in the alco-bev industry. The company is engaged in refining, distilling, rectifying, fermenting, purifying, compounding, blending, bottling, packaging, storing, distributing, importing, exporting, marketing and trading in Extra Neutral Alcohol (ENA), ethanol, industrial alcohol, potable alcohol, rectified spirit and other alcohol-based products. As the entity was recently incorporated, its first financial statements are yet to be prepared.
Following the acquisition, Kion will become a subsidiary of Allied Blenders and Distillers and will also qualify as a related party under the shareholders’ agreement. However, the company clarified that the first tranche of investment does not fall within the purview of related party transactions and will be undertaken on an arm’s length basis. None of the promoters or promoter group entities have any interest in Kion other than the shareholding and associated rights acquired by the company.
The proposed acquisition aligns with Allied Blenders’ growth strategy and is aimed at enhancing distillation capacity across key markets. The project is expected to improve margins and strengthen supply security through the establishment of a 200 KLPD dual-mode distillery for production of ENA, ethyl alcohol and ethanol at Vizianagaram, Andhra Pradesh. The project involves a planned investment of approximately ₹300 crore, with ₹45 crore to be invested by Allied Blenders and the balance project funding expected to be raised through debt at benchmarked rates over the execution timeline.
The initial acquisition is expected to be completed by June 2026, and the distillery is targeted to be commissioned by Q4 FY28, subject to regulatory approvals. The company also stated that no prior governmental or regulatory approvals are required for the acquisition itself.