John Distilleries is prepared to consider selling additional, and potentially all, of its founder’s remaining shares to U.S. spirits group Sazerac, the company’s founder said, following an earlier deal that valued the business at about 40 billion rupees (about $426.48 million). Sazerac - owner of brands such as Corazon tequila and Svedka vodka - already holds roughly 60% of the privately held Indian liquor maker after acquiring stakes, including purchases from Gaja Capital nearly a decade ago.
There is no fixed timeline for further transactions, the founder said, but he confirmed that the two sides have agreed in principle to jointly investigate potential changes to the company’s shareholding. He added that any disposition of his remaining stake would likely take place at a valuation higher than that of the most recent round.
Established about three decades ago and headquartered in Bengaluru, John Distilleries operates across both budget and premium segments. Its portfolio includes high-volume brands such as Original Choice whisky and premium offerings such as the Paul John single-malt range.
Reflecting on the company’s evolution, the founder said he has taken the business to the level he could achieve independently and suggested that future expansion would benefit from backing by a larger global partner. "I have taken the company to the level that I could do it on my own, and from now on, it really needs a big daddy," he said. He described an association with a partner like Sazerac as an attractive option.
Sazerac’s global expansion strategy has been visible in recent activity; the firm surfaced as a bidder for Brown-Forman, the maker of Jack Daniel’s, earlier this month, underscoring its appetite for growth through acquisitions. Sazerac did not immediately respond to a request for comment on the John Distilleries matter.
Market data cited by the founder points to strong long-term demand dynamics in India. Research by industry data provider IWSR indicates India is on track to become the world’s largest spirits market by volume by 2032, overtaking China, with an estimated 15 million to 20 million new consumers entering the market each year.
Financially, John Distilleries has reported growth in top-line metrics. Private market data provider Tracxn shows the company’s revenue rose 20% to 94.5 billion rupees in the year ended March 2025, broadly consistent with the pace of growth over the previous five years. The founder said he expects to sustain that rate of growth.
However, profitability has trailed revenue expansion. The company has invested heavily in building premium brands while also operating in the thin-margin, high-volume budget segment. Those mix effects have weighed on margins, although the company expects to return to profitability by fiscal 2028.
The industry is also facing supply-side constraints. Global disruptions have affected the availability of cans and glass bottles used across the alcohol sector. The founder said the effect on John Distilleries has been limited because a significant portion of its sales is packaged in small carton packs.
Currency disclosure: $1 = 93.7900 Indian rupees.
Summary
John Distilleries’ founder is open to selling more, potentially all, of his remaining stake to Sazerac following a transaction that valued the company at about 40 billion rupees. Sazerac already owns about 60% of the company. No timeline has been set, though both parties will explore shareholding changes, and any future sale of the founder’s shares would likely be at a higher valuation. The company reported 20% revenue growth to 94.5 billion rupees for the year ended March 2025 and expects to regain profitability by fiscal 2028 amid investments in premium brands and supply constraints for cans and bottles.