Allied Blenders & Distillers opens a ₹115 crore PET bottle plant in Telangana, producing 600M+ bottles annually. A key step in its ₹525 cr backward integration strategy.
In a strategic move to tighten control over its supply chain and improve profitability Allied Blenders and Distillers Ltd (ABD) India’s largest spirits company by volume has inaugurated a state-of-the-art PET bottle manufacturing plant at its integrated campus in Rangapur, Telangana.
The new facility, built with an investment of approximately ₹115 crore boasts an annual production capacity of over 600 million bottles. This will meet a significant portion of ABD’s packaging needs, marking a crucial step in the company’s ambitious backward integration strategy.
Enhancing Efficiency and Margins
The primary advantage of this in-house facility is the reduction of reliance on external suppliers. By manufacturing its own PET bottles, ABD can significantly lower logistics costs, enhance supply chain resilience and gain greater control over packaging quality and timelines.
The plant is equipped with highly automated, robotics-powered packaging systems Japanese energy-saving equipment and advanced recycling capabilities. It is co-located within what ABD describes as the largest integrated alcohol beverage (alcobev) facility in Telangana, which also houses an Extra Neutral Alcohol (ENA) distillery an Indian-Made Foreign Liquor (IMFL) bottling unit, and an upcoming Single Malt plant.
Part of a Broader ₹525 Crore Integration Push
This PET plant is a critical component of ABD’s broader ₹525 crore backward integration programme. This ambitious plan also includes the construction of India’s first single malt distillery at the same Rangapur site and the expansion of a recently acquired ENA distillery in Maharashtra.
The company has stated that these combined investments are expected to enhance operational efficiency and improve gross margins by 300 basis points by the financial year 2027-28 (FY28).
Speaking on the launch, Alok Gupta, Managing Director of ABD, highlighted the integrated approach: “This facility underscores our commitment to an integrated manufacturing model. Utilizing our existing infrastructure helped us keep expenses down, speed up the setup process, and limit environmental impact.”
He added that the advanced automation gives the company greater control over packaging, strengthens support for its product range, and boosts overall operational efficiency.
ABD’s portfolio includes popular brands like Officer’s Choice Whisky, Sterling Reserve, and ICONiQ White Whisky. With this new plant, the company’s manufacturing network now comprises 37 units, including 9 owned bottling units and 2 owned distilleries, solidifying its in-house production capabilities for the long term.
