Allied Blenders And Distillers IPO

Diversified Product Portfolio : Allied Blenders has products present across various price points of IMFL categories in India. Over the years, they have introduced contemporary brands that appeal to consumer tastes and preferences. Three of their brands, Officer’s Choice Whisky, Sterling Reserve Whisky, and Officer’s Choice Blue Whisky, are ‘Millionaire Brands’. The product portfolio has 10 brands of IMFL with five brands of whisky that include our flagship Officer’s Choice Whisky and Sterling Reserve Whisky, two brands of rum, two brands of brandy and one brand of vodka, respectively covering a wide range of consumer tastes.

Strong Brand Recognition: Company has strategically invested in brand-building initiatives and launched campaigns to increase awareness and brand recall. With these efforts, they have transformed from a single brand to a multi-brand portfolio across categories. In the past, company has associated with IPL, Pro Kabaddi League and regional football leagues for their focus markets of West Bengal and the North East. They have also appointed celebrity brand ambassadors.

Pan India Distribution Network: They have access to a pan-India multi-channel distribution network and are one of only four spirits companies in India with a pan-India sales and distribution footprint. Liquor is highly regulated industry with controls, permits, licenses required for new players. Allied Blenders has a competitive advantage due to strong presence across their markets for bottling, distribution and regulatory permissions.

Strategically Located Manufacturing Facilities: Company's distillery is located in Telangana. In addition, they also have extensive bottling capabilities with an optimal mix of owned and third-party facilities with a pan-India presence. This ensures that they are able to manufacture locally and at optimum cost without overlaying tariffs associated with inter-state movement.

Regional Concentration: Allied Blenders depends on sales of their products in certain States e.g. West Bengal, Telangana and any reduction in sales in such key States due to local factors or regulatory reasons could have an adverse effect on the business.

Price Control: Prices of alcoholic beverages in India is controlled by respective State governments with varying tax structures leading to high variation in prices across States. Company may be unable to increase the selling price of their products which could adversely affect the business,

Advertising Restrictions: The Indian alcoholic beverage industry faces restrictions on advertising of alcoholic beverages and brand promotion in television, print and multimedia. This restricts the companies' ability for marketing and promotion.

Taxation: An increase in taxes or a change in the tax calculation method may affect the demand for company's products and could adversely affect the business.