Allied Blenders to acquire 50% stake in Kion Blenders

INDIA – Allied Blenders and Distillers has announced the acquisition of up to a 50% stake in Kion Blenders Industries Private Limited, with a total investment not exceeding Rs 45 crore, as part of its strategy to expand its distillation and alcohol manufacturing footprint. 

In a regulatory filing under Regulation 30 of the SEBI Listing Regulations, the company stated that the investment will be made in tranches.  

The initial tranche includes a primary investment of Rs 50,000 for up to 50% equity, representing 5,000 shares of Rs 10 each. The total financial commitment under the arrangement is capped at Rs 45 crore. 

Kion Blenders Industries Private Limited was incorporated on August 25, 2025, and operates in the alco-beverage sector. Its activities include 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 and rectified spirit. 

Following completion of the transaction, Kion will become a subsidiary of Allied Blenders and will qualify as a related party under the shareholders’ agreement.  

The company clarified in its filing 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.”  

It further stated that none of its promoters or promoter group entities have any interest in Kion other than the shareholding and associated rights being acquired. 

The acquisition aligns with Allied Blenders’ growth strategy and is expected to enhance distillation capacity across key markets. The project includes the establishment of a 200 KLPD dual-mode distillery in Vizianagaram, Andhra Pradesh, for the production of ENA, ethyl alcohol and ethanol. 

The total planned investment for the project is approximately Rs 300 crore, with Rs 45 crore to be funded by Allied Blenders and the remaining capital to be raised through debt at benchmarked rates over the execution timeline. 

The initial acquisition is expected to close by June 2026, while the distillery is targeted for commissioning by the fourth quarter of FY28, subject to regulatory approvals. The company also confirmed that no prior governmental approvals are required for the acquisition itself. 

In January, Allied Blenders announced plans to acquire a non-operational distillery and bottling facility from National Industrial Corporation in Moradabad, Uttar Pradesh, for up to Rs 700 million. 

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