Allied Blenders & Distillers Revives LOI for Andhra Pradesh IMFL Plant

Allied Blenders & Distillers (ABD) has received regulatory confirmation reviving its Letter of Intent (LOI) to establish a greenfield Indian Made Foreign Liquor (IMFL) bottling plant in Andhra Pradesh. The communication, dated May 5, 2026, from the Office of the Commissioner of Distilleries and Breweries, validates a government memo reinstating the LOI in ABD's favour. Key Terms: Validity: Extended until September 26, 2028 Capacity: ~46.5 lakh cases per annum Licence: Permission to obtain DM2 (MGO) Licence from the state Excise Commissioner Conditions: Subject to payment of outstanding dues and compliance with specified requirements Strategic Significance: Andhra Pradesh represents a high-consumption market for IMFL in South India. This greenfield facility will: Enhance Supply Chain Efficiency: Reduce logistics costs and improve distribution agility for ABD's portfolio (Officer's Choice, Romeo's Blue, etc.) in the region. Support Volume Growth: Additional capacity aligns with ABD's expansion strategy to capture market share in a competitive, high-growth state. Regulatory Clarity: LOI revival resolves prior uncertainty, enabling ABD to proceed with land acquisition, construction, and licensing timelines. Outlook: With the LOI now active, ABD is expected to fast-track project execution to meet the 2028 validity deadline. Successful commissioning would strengthen its manufacturing footprint in South India and support long-term volume leadership in the premium and popular IMFL segments.