Allied Blenders and Distillers Limited (ABDL) announced that its Management Committee of the Board of Directors has approved entering into a Shareholders’ Agreement and Share Purchase Agreement to acquire up to 50% of the paid-up share capital of Kion Blenders Industries Private Limited (KION). Following this acquisition, KION will become a subsidiary of ABDL. KION, incorporated on August 25, 2025, is engaged in the business of 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, rectified spirit, and all other forms of alcohol and alcohol-based products. Its authorized/paid-up capital is ₹1,00,000, and its first financial statements are yet to be prepared. The proposed acquisition aligns with ABDL's growth strategy to enhance distillation capacity. KION will establish a 200 KLPD dual-mode distillery in Vizianagaram, Andhra Pradesh, with a planned investment of approximately ₹300 crore. ABDL and another shareholder will each invest up to ₹45 crore in tranches, with the remaining funding to be raised through debt. The initial acquisition is expected to be completed by June 2026, and the distillery is projected to be commissioned by Q4FY28. The transaction involves a cash consideration, with ABDL investing up to ₹45 crore for a stake of up to 50% (5,000 Equity Shares of ₹10 each). KION will become a related party post-acquisition, but the initial investment does not fall under related party transactions, and future investments will be at arm's length. No prior governmental or regulatory approvals are required for this transaction.
