A newly incorporated liquor company, barely two weeks old, is already on the prowl for acquisitions. Pepsi-bottler Varun Beverages’ subsidiary, Kiva Spirits and Co. Ltd, incorporated at the end of August, is in advanced talks to acquire IPO-bound Alcobrew Distilleries India Ltd for an enterprise value of ₹2,000 crore-2,500 crore, according to people familiar with the matter.
The proposed transaction is expected to give Kiva a portfolio of liquor brands, manufacturing facilities and a distribution network as Varun Beverages looks to build its presence in the alcoholic beverages market.
While Kiva has been introduced as a ready-to-drink alcobev and allied product maker, the Alcobrew portfolio has a range of whiskies, including Gamber Valley single malt, apart from vodka, gin, brandy and rum.
At least two people familiar with the plan confirmed to Mint that the talks are at an advanced stage, although the structure and terms of the transaction have not been finalized.
“We are aware that the talks are in advanced stages and could conclude soon. The two companies are currently trying to arrive at a price between ₹2,000 crore and ₹2,500 crore,” one of the people said on the condition of anonymity.
“If the transaction materializes at the valuation being discussed, it could work well for both sides. For Alcobrew’s promoters, it offers an opportunity to crystallize the value they have created and make a meaningful exit, albeit a bit early. Post their recent launch of their single malt (Gamber Valley), they could have potentially been in the game for a longer haul,” said expert Poonam Chandel, former managing director of Neuworld Spirits, a New Delhi-based alcobev startup.
It was not immediately clear whether the proposed transaction with Kiva would affect Alcobrew’s planned initial public offering. The IPO comprises a fresh issue of shares of up to ₹258.25 crore and an offer for sale of up to 18 million shares by promoter Romesh Pandita. The IPO draft prospectus was cleared by the markets regulator this January.
Alcobrew declined to comment on Mint's queries on the acquisition talks or the IPO prospects. “It is the company’s stated policy not to comment on or respond to media speculation, and we are therefore unable to offer any response to the queries raised,” it said.
The company added that if any developments arise that require disclosure under applicable regulatory or statutory requirements, it will make the necessary announcements.
Emails and messages sent to Kiva did not receive a response till publishing time.
Premium valuation
At an enterprise value of ₹2,000 crore-2,500 crore, Alcobrew's valuation would be roughly 16.7-20.9 times its FY25 Ebitda of ₹119.7 crore, based on the data available in its IPO documents filed with the market regulator in September 2025.
“Alcobrew would be crystallizing value today; Kiva would still have to create that value tomorrow,” Chandel said.
Alcobrew’s portfolio includes whisky brands such as White & Blue, Golfer’s Shot, Golfer’s Shot 18 Hole, White Hills, and Alcobrew Single Oak. It also makes One More vodka, Victorio brandy and Lion Daddy and Bhrum rums, according to the IPO papers.
The company also holds the India licence for Old Smuggler Blended Scotch whisky and Old Smuggler rum, owned by Italy’s Gruppo Campari. Its portfolio currently comprises 13 products, with prices ranging from about ₹440 for Old Smuggler rum to ₹2,000 for its Golden Circle whisky.
For Kiva, incorporated on 29 August, the acquisition may provide quick scale to Varun Beverages, as it enters the category outside its traditional business of carbonated soft drinks, juices, packaged water and other non-alcoholic beverages.
On 25 August, Varun Beverages said Kiva would make ready-to-drink beverages and alcoholic and allied products.
“For Kiva, the larger question of diversification into alcobev will ultimately be judged by the returns it generates. But once the decision to enter the sector has been taken, acquiring an established player is certainly a faster route than building from scratch. Alcobrew brings manufacturing, licences, brands, distribution and an understanding of India’s complex alcobev market, while VBL brings capital and execution strength,” said Chandel.
Kiva appointed Prathmesh Mishra as its chief executive officer and managing director. Mishra most recently served as managing director for Korea and Japan at spirits major Diageo and had previously held senior roles at Diageo India and Pernod Ricard India.
Alcobrew business
Alcobrew, which began operations in 2002, has a presence in about 15 states and Union Territories. In 2022, it established a distillation and bottling unit in the Gamber Valley of Solan district in Himachal Pradesh. The Gurugram-based company also has distillation and bottling operations in Dera Bassi, Punjab.
It has built an export network of about 20 countries, including markets in Africa, Asia and West Asia, according to its IPO documents. Alcobrew reported revenue from operations of ₹1,615 crore in FY25, down from ₹1,640 crore in FY24, while profit after tax rose to ₹69.45 crore from ₹62.55 crore.
According to the company’s IPO documents, the Indian whisky market was valued at ₹1.6 trillion in FY24 and was projected to reach ₹2.83 trillion by FY30, driven by rising premiumization, higher per-case realizations, and deeper penetration of prestige and luxury segments across tier-I and -II urban clusters.