Pernod Ricard India, which employs over 1,500 people and runs 24 production facilities across the country, could soon test investor appetite on Mumbai’s Dalal Street. The Paris-based company has kicked off preliminary discussions with financial advisers to assess a potential spinoff and listing, according to people familiar with the matter cited by Bloomberg News.

Executives face pressure after Pernod Ricard’s shares dropped 17% in the past year. Sales in key markets like the US and China have weakened sharply. India stands out by contrast. The unit posted 6% organic sales growth in the fiscal year ended June 30, 2025.

Blended whisky Jameson now ranks as India’s second-largest market for Pernod Ricard by volume. Local brands such as Blenders Pride and Royal Stag round out the lineup. These use a mix of Indian grain spirits and imported Scotch malts. Premium drinks have surged in popularity as rising incomes push consumers toward higher-end choices in alcohol, cars and more.

Demographics help drive the shift. Younger buyers accept premium spirits more readily. New launches flood the market. A fresh India-EU trade pact, finalized last month, will cut tariffs on imported wine, spirits and beer. That move promises lower prices and wider access for European labels.

Pernod Ricard India mirrors steps by other global firms. Diageo Plc’s United Spirits Ltd., listed in London, already trades in Mumbai. Hyundai Motor Co. and LG Electronics Inc. have followed suit in recent years. These companies tap India’s deep pool of domestic investors and benefit from richer valuations.

Talks remain early. No firm timeline exists, and the plan might not advance. Still, the move fits a pattern among multinationals chasing growth in Asia’s third-largest economy. Carlsberg, another player, eyes a similar IPO for its India business, its CEO said recently.

India’s alcohol sector heats up. Premiumisation accelerates amid social changes and economic tailwinds. Trade deals with the US and EU could slash prices on Scotch and bourbon by up to 40%. Pernod Ricard, with its strong local footprint, positions itself well to capitalize.