Pernod Ricard Is Building a $217 Million Whisky Distillery in This Emerging ‘Key Player’ Country
India received the equivalent of a $217 million investment from Pernod Ricard to build a major distillery. (AP Photo/Gurinder Osan)
Pernod Ricard announced on Friday that it is investing €200 million ($217.1 million) in building a new malt distillery within India’s industrial suburb of Butibori in Nagpur, Maharashtra. The project is expected to be completed in three years. The spirits megabrand intends to employ up to 800 people at the distillery, which has a projected output of distilling 60,000 liters of whisky per day.
“We are excited to announce the launch of one of India’s biggest malt spirit distilleries, to be set up in Nagpur, in Maharashtra,” Pernod Ricard India CEO Jean Touboul said in a news release. “This initiative is in continuation of our dedicated efforts to Make and Innovate in India and we are confident that it will elevate India’s standing on the global map, as a key player in the production of high-quality malt.”
According to Pernod Ricard, the distillery intends to use sustainable methods and source grain from local farmers.
“We believe that infrastructural growth is the first step towards amplifying advancement for any State and we are delighted that Pernod Ricard India shares our vision to invest in the economic and skill development of the region and the country,” Maharashtra Deputy Chief Minister Devendra Fadnavis said in a statement. “The foundation of this distillery will assist in creating strong avenues for employment and aid in spurring growth of ancillary industries and services. And most importantly this would serve as a platform of opportunities for thousands of farmers of the region to attain steady income and bring agricultural diversity and stability.”
India is a major market for Pernod Ricard. In July, the spirits supplier had its L-1 liquor license rejected by the New Deli High Court because of allegations of criminal activity and was working with the legal system to get things back on track. The company was charged with “cartelization and money laundering.” An individual named Binoy Babu, who served as Pernod Ricard’s general manager of international brands, was arrested and faced criminal charges.
Pernod Ricard’s distillery investment in the country seems like a financially savvy play. According to Statista, the revenue of the spirits markets is projected to amount to $29.6 billion in 2024. The Drinks Business reported in August that Indian single malt sales experienced a massive growth of 340%, and made the bold claim that demand for Indian whisky now rivals scotch.
“The establishment of this distillery will provide a boost to various allied sectors in and around Nagpur and the state of Maharashtra,” Touboul continued. “Further, the foundation of the plant will aim to provide local entrepreneurs and the farmer community with new avenues of growth. As a leading player in the alco-bev segment for over 30 years, inclusive and sustainable growth has been at the heart of our India strategy. We are honored to work with the Government of Maharashtra which shares a similar vision.”
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