In a strategic move to diversify beyond its brandy stronghold, Tilaknagar Industries Limited (TIL), India's largest brandy manufacturer, is making a significant entry into the premium whisky segment this month. The company will launch Seven Islands, a pure malt whisky priced at ₹5,200 in Maharashtra, marking its second major release under the newly established House of TI luxury vertical.
Strategic Expansion Following Major Acquisition
The launch comes shortly after Tilaknagar's landmark ₹4,150 crore acquisition of Imperial Blue from Pernod Ricard, a deal that provides the company with its first meaningful national distribution network. This acquisition represents a pivotal moment for the company, enabling broader market reach beyond its traditional southern Indian stronghold.
Sanaya Dahanukar, marketing manager at TIL, revealed that Seven Islands will feature multiple expressions in the future, with plans for a single malt already on the drawing board. The company sees substantial opportunity to build brands across various price points between Imperial Blue and Seven Islands, targeting the premium and super-premium categories where significant price-tiering potential exists.
The Return of Seven Islands with New Formulation
While the Seven Islands name isn't new to Tilaknagar's portfolio, the current formulation represents a complete reinvention. More than a decade ago, the company released a limited-edition Scotch single malt under the same name, produced in Scotland by BenRiach and priced around ₹50,000. That product arrived well before the current Indian single-malt boom and was eventually discontinued.
The new Seven Islands is a 100% malt whisky crafted from four different single malts – two Indian varieties sourced from the Himalayas and Vindhyas, and two Scottish malts from Speyside and the Lowlands. Each component undergoes distillation and maturation at its origin, spending up to eight years in ex-bourbon and ex-wine casks before being transported to Tilaknagar's distillery in Nashik for final blending.
The product targets sophisticated consumers who comfortably navigate between domestic malts, Scotch whiskies, and craft blends. Tilaknagar is also exploring extensions within the Seven Islands range, including potential incorporation of malts from other whisky-producing countries and evaluating peated expressions, a style that exists in India but hasn't yet achieved significant scale.
Transforming Beyond the Brandy Belt
Founded in 1933 as a sugar mill, Tilaknagar entered the alcoholic beverages business in the 1980s and built its scale primarily through brandy, which currently constitutes nearly 90% of the company's sales. This dominance has been supported by its longstanding strength in south India, where consumers drink almost all of the country's brandy.
The Imperial Blue acquisition is expected to dramatically alter this balance. Dahanukar projected that dependence on southern markets will drop from nearly 90% to about 50%, while brandy's contribution to the portfolio will reduce to approximately 30%. North and West India together are expected to comprise about half of the company's portfolio once Imperial Blue becomes fully integrated.
Consumer behavior patterns significantly influenced the decision to expand into whisky. Dahanukar explained that while brand loyalty can shift with quality products and strong marketing, category loyalty proves extremely difficult to change. Converting whisky drinkers to brandy represents a substantial challenge, making it more strategic to serve the existing whisky-dominant market.
House of TI Portfolio Expansion
Seven Islands will join Monarch Legacy Edition within the House of TI premium vertical. The portfolio also includes brands developed through partnerships with portfolio companies: Samsara from Goa-based Spaceman Spirits (where Tilaknagar holds a 21% stake) and Bartizans, an artisanal cocktail mixer brand in which it owns 36%.
Samsara introduces gin, rum, and vodka into Tilaknagar's offerings, broadening its category reach. Meanwhile, Bartizans connects the company with a younger, cocktail-focused demographic. Dahanukar noted that Bartizans attracts a distinctly different audience, and the company is exploring collaborations to introduce these consumers to their spirits in accessible ways.
The House of TI brands are already gaining early traction in export markets, including the UAE, Canada, and Australia. For Tilaknagar, the successful push into premium spirits heavily depends on distribution scale, an area where the Imperial Blue acquisition is expected to provide significant acceleration and market penetration capabilities.
