Pernod Ricard Hints at Exploring India Unit Listing Options to Enhance Value

Pernod Ricard's Indian Subsidiary Remains Undecided on Listing

French spirits major Pernod Ricard has announced that no decision has been made regarding the listing of its Indian subsidiary, despite exploring options to create shareholder value. The company, which owns popular brands such as Absolute, Chivas Regal, and Glenlivet, stated that it regularly assesses and evaluates its strategic opportunities and is continuously exploring options to optimize its capital structure.

Pernod Ricard India (PRI), the company's local subsidiary, is the leading Indian alchoBev player with a revenue of Rs 27,446 crore for FY2024-25. Since the last five years, PRI has experienced a high single-digit Compound Annual Growth Rate (CAGR) of 8 per cent. PRI has recently divested its Imperial Blue business to home-grown Tilaknagar Industries and has adjusted its portfolio to include Royal Stag, Blenders Pride, 100 Pipers, Longitude 77, and the newly-launched 'Xclamat!on'.

During an earnings call in February, Pernod Ricard's global management responded to a query on the possibility of an Initial Public Offering (IPO) for its Indian business. The company's CFO, Helene de Tissot, stated that an IPO is not part of their deleveraging strategy. Specifically, she noted that a Net Debt EBITDA ratio below 3 by 2029 does not include an assumption of a listing in India.

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India is the largest market for Pernod Ricard globally by volume, driven by strong sales of brands like Royal Stag, Blenders Pride, and premium imports such as Chivas Regal and Glenlivet. By value, India ranks second after the US, having surpassed China due to rapid premiumisation trends and contributing around 12-13 per cent to global revenues.

The company is expecting a strong second half of the year for India, which is a very exciting market for Pernod Ricard. With momentum on the rise, the company is anticipating acceleration in the second half of the year, driven by its stronger top-line ambition.