Maker of World’s Fastest-Growing Whisky for 3 Straight Years Starts 6 Million-Case Bottling Facility in Uttar Pradesh

Allied Blenders and Distillers Ltd has commenced commercial operations at its Moradabad bottling facility in Uttar Pradesh, adding an initial bottling capacity of 6 million cases per annum as it pushes deeper into backward integration.

The company acquired the facility assets in January 2026 for about Rs 70 crore and subsequently invested about Rs 40 crore to upgrade the unit. The commissioning confirms the operationalisation of a project that ABD had previously indicated would be completed during the third quarter of FY27.

For ABD, the unit is intended to do more than add capacity. Greater in-house bottling in Uttar Pradesh could improve supply responsiveness in a large state market, reduce dependence on franchise bottlers and lower franchise-fee outgo. It also gives the company a base for further integration, including higher captive extra neutral alcohol, or ENA, capacity.

Managing Director Amar Sinha said the unit would strengthen ABD’s manufacturing base in Uttar Pradesh and support greater control over its value chain. ‘Backward integration is a key pillar of our strategy, enabling greater control over the value chain, improved supply chain agility and stronger cost efficiencies,’ he said.

The Moradabad facility forms part of a wider Uttar Pradesh investment programme exceeding Rs 600 crore. Besides the acquisition and upgrade of the bottling unit, the programme includes a proposed integrated facility with a dual-mode distillery and additional bottling capacity. ABD has identified Uttar Pradesh as a key market in its broader effort to expand captive manufacturing of ENA, malt, PET bottles and bottling capacity across multiple states.

The investment programme is material to the company’s stated medium-term margin strategy. In its Q1 FY27 presentation, ABD said its multi-year capex plan across Telangana, Uttar Pradesh, Maharashtra and Andhra Pradesh was aimed at strengthening supply security and delivering structural cost efficiencies. The company has targeted an EBITDA margin of around 18 per cent by FY28, compared with 14.4 per cent reported for FY26, with backward integration expected to be one contributor.

The capacity addition comes after a relatively modest start to FY27 on reported financial metrics. Net sales rose 1.85 per cent year-on-year to Rs 1,809.15 crore in the June 2026 quarter, while PBIDT increased 3.48 per cent to Rs 115.47 crore. However, profit after Tax declined 18.65 per cent year-on-year to Rs 45.42 crore. Management had attributed part of the near-term pressure to global supply-chain disruption, including packaging-related costs, while maintaining that integration projects should support margins over time.

ABD operates in a state-regulated alcohol market where bottling access, manufacturing licences and Logistics can have a direct bearing on availability and costs. Its network had included 37 bottling units and two distilleries, according to its FY26 annual report. The Moradabad commissioning therefore expands an already broad production platform while increasing the proportion of operations under the company’s direct control.

Execution will remain important because ABD has several projects under development and is funding capex through internal accruals and debt. The company had net debt of Rs 947 crore at the end of the June 2026 quarter, according to its investor presentation, although management said leverage remained within its internal guardrails.

As of 11:00 am on October 19, 2026, ABD shares were trading at Rs 748.55, up 0.15 per cent from the previous close. The stock has gained 34.45 per cent over the preceding year, outperforming the BSE 500, which declined 5.78 per cent over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.