McDowell to set up Scotch maturation unit at Perthshire, Scotland

Mumbai, July 14 (UNI) McDowell&Company Ltd, a UB Group company, has decided to set up a Scotch maturation facility at Perthshire in Scotland.

Addressing a press conference, UB Group Chairman Dr Vijay Mallya said this will enable the company to purchase fresh grain and malt spirits at economic prices and mature them in-house to suit the age profile required in India. ''This would help us to have a control over the maturation process of Scotch all by ourselves and also we don't have to a premium for buying the matured scotch directly,'' he said.

''This move,'' Dr Mallya said, ''will ensure continuity of supply of Scotch at affordable prices to cater to the future growth in India.'' Replying to a question, Dr Mallya said his company would be buying young spirits and do take up the maturation of itself. For instance, he explained: it would buy three-year-old Scotch in bulk quantities and store the same in wooden kasks under certain conditions.

Responding to another query, Dr Mallya said, ''Any young spirit has to be matured initially for at least three years mandatorily in Scotland to qualify and be defined as scotch.'' On merger issue, Dr Mallya said, the merger of all spirit companies will be completed by September this year and thereafter the company's name will change to United Spirits and it will be duly listed. He clarified that Zelinsa and Asian Opportunities are two investment companies and as such, will not be merged as part of the merger of spirits business.

Further, he statedd that the merger of spirits companies is on schedule and they are looking at expanding their product base in Europe.

He flatly denied that his company has not made any bidding for Fosters. In this context, he said, ''You guys (media) write, which sometimes is news to me itself and I have to keep giving clarification to every one. I have nothing to hide from the media, if I have bid for anything, I am the first to admit about it.'' Meanwhile, McDowell&Co has for the first quarter of fiscal 2007 ended June 31, 2006 earnings before interest, depreciation and tax (EBIDTA) at Rs 77.5 crore, showing an increase of 117 per cent from the corresponding period of the previous year, while profit before tax(PBT) was up by 212 per cent on a revenue increase of about 20 per cent.

Reflective of the improving trading conditions, Dr Mallya said the Proforma aggregated results of the Companies being combined to form Unites Spirits Ltd also show a nearly 70 per cent increase in EDBIDTA to Rs 104.5 crore. PBT for the combined entities stood at Rs 73 crore, an increase of 168 per cent over the previous year.

UNI SN KU SKB1956