Allied Blenders and Distillers is the largest Indian-owned Indian-made foreign liquor (“IMFL”) company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2021. They are one of the only four spirits companies in India with a pan-India sales and distribution footprint, and the leading exporter of IMFL, in terms of annual sales volumes between Fiscal 2019 to Fiscal 2021 with an estimated peak share of 20% in Fiscal 2021. (As per DRHP)
The company offers four main categories of Indian-made foreign liquor, including whisky, brandy, rum, and vodka. They also sell packaged drinking water under the Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve brands. The company’s products were exported to 22 international markets, including the Middle East, North and South America, Africa, Asia, and Europe.
Their flagship brand, Officer’s Choice Whisky was launched in 1988 with their entry into the mass premium whisky segment. Officer’s Choice Whisky has been among the top-selling whisky brands globally in terms of annual sales volumes between the calendar year 2016 and 2019. As of March 31, 2022, the company product portfolio comprised 10 major brands of IMFL across whisky, brandy, rum, and vodka. Certain of their brands, such as Officer’s Choice Whisky, Sterling Reserve, and Officer’s Choice Blue, are ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year. (As per DRHP)
OBJECTIVE
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company
- General corporate purposes.
POSITIVE
NEGATIVE
Allied Blenders IPO Timeline
| IPO Date | To Be Updated |
| Listing Date | [.] |
| Face Value | ₹ per share |
| Price Band | ₹ to ₹ per share |
| Lot Size | Shares |
| Total Issue Size | |
| Fresh Issue | |
| Employee Discount | Rs per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | |
| Share holding post issue |
Allied Blenders IPO Details
| IPO Open Date | To Be Updated |
|---|---|
| IPO Close Date | To Be Updated |
| Basis Of Allotment Date | To Be Updated |
| Initiation Of Refunds | To Be Updated |
| Credit Of Shares To Demat ACcount | To Be Updated |
| IPO Listing Date | To Be Updated |
So, how does Allied Blenders IPO Fare in Terms of Financials?
Financial Details
The financial highlights of IPO are summarised in this table below –
| YearRevenueExpensePAT2020₹-₹-₹-2021₹6398₹6185₹2.512022 9M₹5453₹5294₹3.30 |
Note:In Cr.
FINANCIAL REVIEW
Key Observations:
- Revenue Growth: Revenue has been increasing, reaching ₹5,453 crores in the first 9 months of 2022, compared to ₹6,398 crores in the full year of 2021.
- Expense Control: Expenses have been managed well, staying relatively close to revenue levels.
- Profitability: Profit after tax has been modest, but positive in both 2021 and the first 9 months of 2022.
- Incomplete Data: Data for 2020 is not available, limiting the ability to analyze longer-term trends.
Additional Insights:
- Profit Margins: It would be helpful to calculate profit margins to understand profitability relative to revenue.
- Year-Over-Year Comparisons: Comparing revenue, expenses, and profit for the same periods in different years would provide more context for trends.
- Industry Benchmarks: Comparing these figures to industry averages would help assess the company’s financial performance relative to competitors.
ALLIED BLENDERS IPO VALUATIONS
| Earning Per Share (EPS): | ₹0.11 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 0.66% |
| Net Asset Value (NAV): | ₹15.75 per Equity Share |
ALLIED BLENDERS IPO – SWOT ANALYSIS
Strengths
- Strong Brand Portfolio: Allied Blenders possesses a diverse portfolio of over 50 brands across whisky, rum, vodka, brandy, and gin, including established names like “Officers’ Choice Elite,” “Bangalore Club Premium Whisky,” and “8PM Premium Black Rum.” This diversification reduces reliance on any single brand and caters to various consumer preferences.
- Market Leader: The company enjoys a significant market share in the Indian IMFL segment, particularly in South India. This established position offers brand recognition, customer loyalty, and distribution channel advantages.
- Experienced Management: Allied Blenders is led by a team of experienced professionals with expertise in the liquor industry. This leadership provides strategic direction and a proven track record of success.
- Growth Potential: The Indian IMFL market is expected to grow at a CAGR of 8-10% over the next few years, driven by increasing urbanization, rising disposable incomes, and changing consumer preferences towards premium brands. This presents a significant growth opportunity for Allied Blenders.
Weaknesses
- High Debt: The company carries a significant debt burden, which restricts its financial flexibility and could impact profitability in the future. Managing debt effectively and reducing leverage will be crucial for sustainable growth.
- Dependence on Traditional Channels: Allied Blenders relies heavily on traditional distribution channels like wholesale and off-trade retail. This dependence makes them vulnerable to disruptions in these channels and limits their reach to newer consumer segments like online buyers.
- Intense Competition: The Indian IMFL market is highly competitive, with established players like United Spirits Limited and Diageo India vying for market share. This competition puts pressure on margins and brand visibility.
- Legal and Regulatory Risks: The IMFL industry is subject to various regulations and taxes, which can impact production costs and profitability. Additionally, any negative regulations or policy changes could harm the industry’s growth.
Opportunities
- Premiumization Trend: Consumers are increasingly shifting towards premium IMFL brands. Allied Blenders can capitalize on this trend by strengthening its premium portfolio and targeting high-end consumers.
- Focus on Exports: Expanding exports to overseas markets, particularly emerging economies with growing middle classes, can diversify revenue streams and reduce dependence on the domestic market.
- Digital Marketing and E-commerce: Leveraging digital marketing and e-commerce platforms can reach younger consumers and expand distribution channels, especially in urban areas.
- Sustainable Practices: Integrating sustainability practices into the production process and promoting responsible drinking can attract environmentally conscious consumers and enhance brand image.
Threats
- Economic Downturn: A general economic slowdown could negatively impact consumer spending on discretionary items like alcohol, hindering Allied Blenders’ growth.
- Raw Material Cost Fluctuations: Fluctuations in the prices of key raw materials like grain and alcohol can affect production costs and profitability.
- Health Concerns and Anti-Alcohol Campaigns: Growing health concerns about alcohol consumption and potential anti-alcohol campaigns could dampen demand for IMFL products.
- Counterfeiting and Smuggling: Counterfeiting and smuggling activities can erode market share and damage brand reputation.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Allied Blenders IPO:
- United Spirits Limited (USL): The undisputed leader in the Indian IMFL market, USL boasts a massive portfolio of iconic brands like McDowell’s, Black Dog, and Smirnoff. With a market share exceeding 20%, USL’s extensive distribution network and marketing prowess pose a significant challenge for Allied Blenders.
- Pernod Ricard India: With popular brands like Royal Stag, Blenders Pride, and Imperial Blue, Pernod Ricard holds a strong 18% market share in the Indian IMFL market. Their focus on premium and super-premium segments overlaps with Allied Blenders’ ambitions, creating direct competition in a lucrative segment.
- Radico Khaitan: Known for brands like Old Monk and Magic Moments, Radico Khaitan commands a market share of around 7% in the Indian IMFL market. Their strong presence in North India and focus on affordable segments make them a competitor for Allied Blenders’ regional dominance and value-conscious consumers.
- Diageo India: A global alcohol giant, Diageo has entered the Indian market with popular brands like Johnnie Walker, Black Label, and Captain Morgan. While their market share is currently smaller, Diageo’s international reputation and marketing budget pose a potential threat to Allied Blenders’ premium aspirations.
ALLIED BLENDERS IPO GMP
- Grey market premium as on DD-MM-YYYY= Rs /Share
- Grey market premium as on DD-MM-YYYY = Rs /Share
- Grey market premium as on DD-MM-YYYY= Rs /Share
- Grey market premium as on DD-MM-YYYY = Rs /Share
Disclaimer:
- IPO Grey Market Premium (ALLIED BELNDERS IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Allied Blenders IPO Live Subscription Status
DD/MM/YYYY 10:00 AM
FINAL TAKEAWAY
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