Allied Blenders and Distillers Limited (ABD) on Monday commenced commercial operations at its bottling facility in Moradabad, Uttar Pradesh, adding an initial capacity of 6 million cases per annum to its manufacturing network. According to the company's Regulation 30 press release dated October 19, 2026, the Moradabad unit was part of assets acquired in January 2026 for approximately ₹70 crore and was subsequently upgraded with a further investment of around ₹40 crore. The facility is expected to improve service efficiency and reduce costs through higher in-house bottling and savings on franchise fees. The commissioning adds 6 million cases per annum of owned bottling capacity in Uttar Pradesh, expanding ABD's in-house manufacturing base from the previously disclosed 10 owned bottling facilities to 11. The Moradabad plant enhances in-house production footprint and supply security across key regional markets, with in-house IMFL bottling capabilities operationalized to serve Northern markets directly.
The Moradabad plant forms part of a larger capital deployment in Uttar Pradesh, where ABD has committed over ₹600 crore. In August 2026, the company approved a capital expenditure plan of ₹293.5 crore to establish a 66 MN BL dual-mode distillery and expand Moradabad bottling capacity from 6 million to 13 million cases per year. This outlay also covers the development of an integrated facility with a dual-mode distillery and additional bottling capacity. Managing Director Amar Sinha stated that the unit advances ABD's backward integration strategy, targeting greater value chain control, supply chain agility, and cost efficiencies including captive ENA capacity. The filing notes that the Moradabad unit is expected to reduce reliance on third-party bottlers and lower franchise fee outflows, which would have a direct bearing on the company's cost structure. Operationalizing captive capacity in key markets provides ABD with direct scale benefits and enhanced operational control, reinforcing long-term competitiveness in the Indian AlcoBev landscape.
The operationalization of captive bottling infrastructure delivers approximately 3% margin enhancement at the company level. By transitioning bottling volumes from third-party franchises to owned units, ABD captures cost efficiencies and secures distribution stability. The company's in-house manufacturing and backward integration initiatives support margin expansion by reducing reliance on external bottling contractors. The Moradabad unit transitions the company from asset acquisition phase to active commercial production, with the commissioning progress of the associated 66 MN BL per year dual-mode distillery supporting operational efficiency and internal capacity expansion. The bottling capacity expansion in Moradabad supports operational efficiency and internal capacity expansion, with grounded data indicating that operationalizing captive units reduces franchise fee leakage and buffers operations against supply chain bottlenecks in key spirits markets.
ABD currently operates 40 manufacturing units, including 10 owned bottling facilities and 2 owned distilleries. According to the company's latest disclosure, its portfolio includes Officer's Choice, Sterling Reserve, and ICONiQ White, with a presence across 39 international markets. The company is headquartered in Mumbai and is one of India's leading spirits companies and the largest spirits exporter by volume. Its portfolio spans whisky, brandy, rum, vodka, and gin, anchored by flagship brand Officer's Choice. The commencement of commercial operations at Moradabad represents a strategic milestone in ABD's effort to strengthen captive manufacturing in high-demand North Indian markets, with the company positioned to optimize regional logistics costs and improve gross operating margins.
