Pernod Ricard's India Growth: Premiumization Fuels Momentum

Pernod Ricard has dismissed an IPO for its India operations as it aims to reduce its debt ratio. The company's India business saw an 8% rise in sales, excluding Imperial Blue. With premium brands like Chivas Regal driving growth, Pernod Ricard forecasts sustained momentum in the upcoming fiscal year.

Pernod Ricard, the French liquor major, has decided against launching an IPO for its India business as part of its debt reduction efforts. This announcement comes as the company reports a 4% rise in net sales within the country, accelerating to 8% after excluding the Imperial Blue brand.

In a recent call, Chairman and CEO Alexandre Ricard indicated optimism for continued growth in the second half of FY'26, despite challenges stemming from a significant tax increase in Maharashtra. The company's fiscal year runs from July to June, and they foresee robust growth driven by their international spirits portfolio.

Despite facing a challenging first quarter, Pernod Ricard remains confident in its ability to sustain an average growth rate of 3% to 6% over the next three years. The company's CFO, Helene de Tissot, reaffirmed their objective to lower the Net Debt to EBITDA Ratio below 3x by 2029, clarifying that an IPO in India is not part of this strategy.

(With inputs from agencies.)