Allied Blenders shares climb 3% after Malaysia expansion; details here

Shares of Allied Blenders and Distillers Ltd (ABD) rose in Monday's trade after the company announced its expansion into Malaysia through local production of Officer's Choice Blue under an asset-light co-bottling arrangement with an established local partner. The move marks ABD's first overseas local production arrangement as the company looks to expand its presence across international markets.

Following the development, the ABD stock rose 3.35 per cent to hit a high of Rs 614.80 on BSE.

Under the arrangement, ABD will produce and distribute Officer's Choice Blue in Malaysia in 750ml, 180ml and 90ml variants. The company will also evaluate introducing additional brands under the same framework, depending on market response and route-to-market readiness.

The Malaysia entry is part of ABD's broader international expansion strategy. The company currently exports to 39 international markets and said its global reach has more than doubled over the past two years. Its international footprint spans the GCC, Africa, North America, Europe and Southeast Asia.

The company said the spirits segment in Malaysia is expected to grow at a mid-teens rate in the coming years. The local production model will allow ABD to enter the market with limited capital deployment while retaining control over raw materials, packaging inputs, quality standards and brand management.

ABD said it will continue to evaluate similar asset-light local production partnerships across select international markets based on market opportunities and strategic fit. The company is also looking to strengthen its position in core export markets, expand distribution in Africa and build its presence in Southeast Asia.

Allied Blenders operates across whisky, brandy, rum, vodka and gin, with brands including Officer's Choice, Sterling Reserve and ICONiQ White. It has a manufacturing network of 40 units, including nine owned bottling facilities, two owned distilleries, one owned PET bottle plant and 28 non-owned manufacturing units.