Large recommendation models have demonstrated substantial potential gains under scaling laws, yet these gains are difficult to realize in industrial recommendation systems because real-world deployment requires lightweight models with strict serving efficiency and latency guarantees. This creates a fundamental gap between offline model scaling and online deployment. In this work, we present Rec-Distill, an industrial distillation pipeline that transfers the performance gains of large-scale recommendation modeling to efficient serving models. Rec-Distill combines large-teacher scaling with student-side transfer optimization through decoupled training, black-box distillation, debiasing mechanism, and a hybrid batch-streaming pipeline for dynamic recommendation environments. Across multiple recommendation and advertising scenarios on real-world platforms, our framework scales teacher models up to 24B dense parameters and 20K behavior sequence length, while enabling lightweight students to recover a substantial portion of teacher gains, with distillation transferability exceeding 60% in the best setting. Extensive offline and online experiments further show that these transferred gains consistently translate into measurable business improvements under industrial constraints. These results demonstrate that Rec-Distill provides a practical framework for distilling large-scale recommendation models into deployable, cost-efficient serving systems, while also establishing a reliable path toward scaling recommendation models to even larger regimes in the future.