Varun Beverages’ Kiva Spirits in talks to acquire Alcobrew
The potential acquisition would give Kiva Spirits an established spirits portfolio, production assets and distribution network as Varun Beverages expands into alcoholic beverages.
INDIA – Varun Beverages is expanding into India’s alcoholic beverages market through its newly incorporated subsidiary Kiva Spirits and Company Ltd, which is reportedly in advanced discussions to acquire Alcobrew Distilleries India Ltd for an enterprise value of around Rs 2,000 crore (US$207.8M) to Rs 2,500 crore (US$259.8M).
People familiar with the matter said the proposed transaction could value Alcobrew within that range, although the deal structure and final terms have not been finalised.
Kiva Spirits was incorporated in August as a wholly owned subsidiary of Varun Beverages. The company has said the new business will focus on ready-to-drink (RTD) alcoholic beverages and related products. It has also appointed former Diageo executive Prathmesh Mishra as chief executive officer and managing director of Kiva Spirits.
The proposed Alcobrew acquisition would provide Kiva Spirits with an established portfolio of liquor brands, manufacturing facilities and distribution capabilities.
Alcobrew’s portfolio spans whisky, vodka, gin, brandy and rum. Its brands include Gamber Valley single malt, White & Blue, Golfer’s Shot, Golfer’s Shot 18 Hole, White Hills and Alcobrew Single Oak. Its portfolio also includes One More vodka, Victorio brandy, and Lion Daddy and Bhrum rum.
The company holds the Indian licence for Old Smuggler Blended Scotch whisky and Old Smuggler rum, owned by Italy’s Gruppo Campari.
Alcobrew began operations in 2002 and has a presence across about 15 states and Union Territories. Its manufacturing footprint includes a distillation and bottling facility at Gamber Valley in Himachal Pradesh, established in 2022, and operations in Dera Bassi, Punjab. The company exports to around 20 countries across Africa, Asia and West Asia.
Alcobrew reported revenue from operations of approximately ₹1,615 crore in FY2025, compared with ₹1,640 crore in FY2024. Profit after tax rose to ₹69.45 crore from ₹62.55 crore, while EBITDA stood at about ₹119.7 crore.
At the reported enterprise value of ₹2,000 crore to ₹2,500 crore, the potential transaction would value Alcobrew at roughly 16.7 to 20.9 times FY2025 EBITDA.
The potential acquisition comes as Alcobrew prepares for an initial public offering. Its draft IPO documents proposed a fresh issue of up to ₹258.25 crore and an offer for sale of up to 18 million shares by promoter Romesh Pandeita.
The company’s draft prospectus received regulatory clearance in January. It remains unclear whether a transaction with Kiva Spirits would affect Alcobrew’s IPO plans.
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