K.M. Sugar Mills is spinning off its Distillery Division into a new listed entity, K M Spirits and Allied Industries. This strategic demerger aims to unlock value by creating two focused businesses – sugar & power, and spirits – each with distinct growth paths. The Distillery segment contributed INR 91.21 Cr (13.29% of FY25 turnover). Existing shareholders will receive 1 share of the new spirits company for every 5 K.M. Sugar shares, offering direct exposure and investment flexibility in this rapidly growing sector. The new entity will be separately listed, a key value unlock for investors.