New Delhi, July 30 -- Mumbai-based liquor makerAllied Blenders and Distillers Ltd anticipates its operating margin to improve by 2 percentage points once the India-UK free-trade agreement is implemented.

The maker of Officer's Choice whiskey, one of India's top-selling whiskey brands, imports bulk scotch worth Rs.100 crore annually. The FTA is set to reduce duties on these imports, positively impacting ABD's cost structure.

"We are one of the largest importers of bulk scotch in India, if youtake the multi-nationals out. Under the FTA, customs duties will come down over a period of 10 years; this alone should have about a 200 basis point impact on our margins," Alok Gupta, managing director of ABD, said in an interview with Mint on Wedne...