Mumbai, June 11, 2025 – Allied Blenders and Distillers Limited (ABDL), India’s leading spirits company by volume, has taken a bold step toward global expansion by acquiring Singapore-based UTO Asia Pte. Ltd. for €1.225 million (roughly ₹11 crore). Announced on June 10, 2025, the deal secures worldwide rights to the prestigious ‘Mansion House’ and ‘Savoy Club’ brands (excluding select regions), reinforcing ABDL’s position in the premium spirits market. This strategic move highlights ABDL’s drive to grow its international presence and elevate its portfolio.
A Strategic Move for Premium Growth
The acquisition of UTO Asia, a firm focused on the global liquor and spirits trade, aligns with ABDL’s goal of strengthening its premium and luxury offerings. ‘Mansion House’, known for its high-quality whisky and brandy, and ‘Savoy Club’, a respected whisky brand, add significant value to ABDL’s lineup, which includes popular names like Officer’s Choice, Zoya Gin, and Arthaus Whiskey.
“This acquisition is a game-changer for us,” said Alok Gupta, Managing Director of ABDL. “It expands our global footprint and enhances our ability to meet the rising demand for premium spirits.” The deal follows ABDL’s recent acquisitions, including Fullarton Distilleries’ craft spirits for ₹39.5 crore and a 51% stake in Good Barrel Distillery for ₹9 crore in February 2025, signaling a clear focus on premiumization.
Priced at €1.225 million (excluding additional fees), the acquisition is a cost-effective step for ABDL, allowing it to tap into growing markets in the Middle East, Africa, Southeast Asia, and Latin America. The company aims to increase its export markets from 22 to 30 countries in the coming quarters, with plans to enter Europe and the Americas soon.
Financial Snapshot: A Strong Recovery
ABDL’s financial performance in FY25 reflects a company on the rise. In Q4 FY25 (ended March 31, 2025), ABDL posted a net profit of ₹78.6 crore, a significant turnaround from a ₹2.4 crore loss in the same period last year. This was driven by strong sales of Officer’s Choice whisky and reduced interest costs after repaying debt with proceeds from its 2024 IPO.
In Q2 FY25, net profit surged over 400% to ₹47.56 crore, supported by improved margins and lower borrowing costs. Q1 FY25 saw a 10% EBITDA margin and ₹11 crore in profit after tax, showcasing operational strength. ABDL also proposed a ₹3.6 per share dividend for FY25, underscoring its financial confidence.
The company’s stock closed at ₹352.30 on May 12, 2025, gaining 7.1% after news of a fundraising plan. However, it faced a 9% drop in April 2025 due to unverified allegations of trade violations in Andhra Pradesh, which ABDL clarified as baseless. With a price-to-sales ratio of 2.7x, slightly above the industry average of 2.4x, the stock appears fairly valued.
What Should Investors Do?
ABDL offers a compelling yet nuanced opportunity for investors. Here’s a breakdown:
Why Invest?
- Financial Turnaround: ABDL’s shift to profitability, lower debt, and strong margins signal a solid foundation. Its focus on premium spirits aligns with growing consumer trends.
- Smart Acquisitions: The UTO Asia deal, alongside earlier acquisitions, strengthens ABDL’s premium portfolio at a low cost, offering growth potential in global markets.
- Export Ambitions: Expanding to 30 countries could diversify revenue and boost earnings.
- Insider Support: Over 50% insider ownership reflects confidence in the company’s future.
Risks to Watch:
- Modest Revenue Growth: Some analysts predict slower revenue increases, which could cap stock gains.
- Market Sensitivity: The April 2025 stock drop shows susceptibility to negative news, even if unproven. India’s regulated liquor sector adds uncertainty.
- Limited Institutional Backing: With under 5% institutional ownership, the stock may lack momentum for sharp price rises.
Investor Guidance:
- Current Shareholders: Hold your position, but consider a stop-loss around ₹281 (the IPO price) to limit losses. ABDL’s long-term growth in premium and global markets supports staying invested for risk-tolerant portfolios.
- Potential Buyers: Wait for a dip below ₹320 for a better entry point. Watch Q1 FY26 results (expected August 2025) for signs of strong sales and smooth brand integration.
- Cautious Investors: Hold off until revenue growth accelerates or institutional investors show stronger interest. The stock’s valuation and industry risks suggest modest short-term upside for conservative investors.
A Toast to the Future
ABDL’s acquisition of UTO Asia is a pivotal move in its journey to become a global spirits leader. With a revitalized financial base, an expanding premium portfolio, and bold international plans, ABDL is poised to capture new markets and consumer preferences. However, success will hinge on effective execution and navigating industry challenges.
For investors, ABDL offers a blend of opportunity and caution. As the company integrates Mansion House and Savoy Club into its global strategy, it’s ready to shake up the spirits industry. Whether this translates to robust returns will depend on market conditions and ABDL’s ability to deliver on its ambitions
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