Allied Blenders & Distillers Ltd IPO

Among the largest IMFL companies in India with a diversified and contemporary product portfolio.

Strong brand recognition.

Strategically located, large scale and advanced manufacturing facilities with a sophisticated research and development centre.

Access to extensive pan-India distribution network with ability to scaleAccess to extensive pan-India distribution network with ability to scale.

Well-positioned to capture tailwinds in the Indian IMFL industry.

Experienced Board and senior management team and supported by a committed employee baseExperienced Board and senior management team and supported by a committed employee base.

The company is substantially dependent on the sales of its whisky products which generated 97.58%, 96.90%, and 95.38% its revenue from operations in Fiscal 2021, 2022 and 2023 and 95.76% and 94.33%, respectively, of its revenue from operations for the nine months ended December 31, 2022 and December 31, 2023. Any reduction in sales of these products could have a material adverse effect on its business, financial condition, results of operations and prospects.

The company has experienced volatile fluctuations in its profit after tax for the year/period and PAT Margin in the past. There is no guarantee that these will improve in the future and the Company will be able to generate higher returns.

The company is significantly dependent on the sale of its whisky products under the Officers Choice brand which constituted 83.76%, 82.29%,75.85%, 76.78% and 73.02% of its total sales volume in Fiscal, 2021, 2022 and 2023 and nine months ended December 31, 2022 and December 31, 2023. An inability to maintain or enhance the popularity of its Officers Choice brand may adversely impact the companys business prospects and financial performance.

Increasing competition in the IMFL industry may create certain pressures that may adversely affect its business, prospects, results of operations, cash flows and financial condition.

Any past or current actions taken by the Central Consumer Protection Authority or any other statutory or regulatory bodies, may impact its operations and financials of the Company.

Termination of its agreements in relation to the bottling facilities may adversely affect its business, results of operations and financial condition.

The company enter into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.

An increase in taxes or a change in the tax calculation method may affect the demand for its products and could adversely affect the companys business, financial condition, results of operations and prospects.

As on the date of this Red Herring Prospectus, certain trademark applications are pending and the company has filed and are a party to 31 ongoing trademark infringement cases. Any inability to protect its intellectual property from third-party infringement may adversely affect its business and prospects.

Its operations are subject to extensive Central and State regulations. Changes in the regulatoryenvironment may cause it to incur additional costs or limit the companys business activities.