Allied Blenders to acquire assets of NICOL's non-operational unit in UP

New Delhi, Jan 16 (PTI) Allied Blenders and Distillers on Friday said its board has cleared a proposal to acquire assets of a non-operational distillery cum bottling facility in Uttar Pradesh from National Industrial Corporation for Rs 70 crore.

Allied Blenders will also invest an additional Rs 40 crore on facility upgradation and setting up of a bottling unit.

The board at its meeting held on Friday considered and approved the acquisition of assets -- land, building, plant, machinery and licenses -- located at Moradabad in Uttar Pradesh from National Industrial Corporation Pvt Ltd (NICOL), Allied Blenders and Distillers (ABD) said in a regulatory filing.

The consideration is up to Rs 70 crore towards acquisition cost with statutory levies and charges, and a further Rs 40 crore towards upgradation of ground infrastructure and setting up bottling unit, aggregating up to Rs 110 crore, it added.

The company further said it has also entered into the relevant definitive agreements.

The proposed acquisition is in line with the growth strategy and to enhance backward integration capabilities of the company, ABD said, adding that the facility is strategically located in Moradabad with an adequate land parcel to accommodate expansion of existing capacity and utilise for building further backward integration capabilities.

"This acquisition will enhance our IMFL bottling capacity in Uttar Pradesh and also enable us to expand the distillery capacity to increase captive consumption of ENA (extra neutral alcohol)," the company said.

The transaction is likely to be completed by July 31, 2026, and the upgradation within 12 months of acquisition, it added. PTI RKL BAL BAL