UB paves the way for Scotch to enter India in a big way

Mumbai, May 17 (UNI) India's leading distillery behemoth, Vijay Mallya's United Spirits today announced the acquisition of Scotland-based whisky maker Whyte and Mackay for USD 1.18 billion, paving the way for original Scotch whisky to enter the world's leading whisky market, which till now was protected by high import duties.

The privately held Whyte&Mackay's brands include the Dalmore, Fettercairn, Vladivar vodka and Scotch whisky labels like Mackinlays, John Barr and Claymore. On the other hand, United Spirits makes the popular Kingfisher beer, a leader here with annual sales of more than 60 million cases, a company statement said.

''Until today, the only missing link in our portfolio has been Scotch. Due to the shortages and rapidly increasing prices of scotch whisky, we needed a reliable supply source to secure our future considering that we use scotch in our Indian blends,'' the Chairman of United Breweries Group, which includes United Spirits, Mr Vijay Mallya said.

The deal will book profits from the very first year of operations, at a time when global demand for scotch whisky is showing strong growth and prices are increasing rapidly, Mallaya asserted and added that Whyte and Mackay will give United Breweries the opportunity to meet it's growing requirements in India.

''We have excellent brands in the Whyte and Mackay portfolio which we will immediately introduce into the Indian market, the Chinese market and the Middle Eastern markets,'' Mallya said and also disclosed that his company would soon invest in Scotland.

It is pertinent to note here that the Indian spirits market is protected because of tariffs as high as a whopping 550 per cent on foreign liquors. But the US and the European Union (EU) want these duties reduced and have approached the World Trade Organisation (WTO) for redressal. If the regulatory body rules against India, the market is likely to be flooded with a host of foreign brands eager to capitalise on a growing middle class with disposable incomes.

In the event of the government reducing import duties, United Spirits will be in a better place to deal with the competition after the Whyte and Mackay acquisition, analysts observed.

UNI