Domestic Indian spirit makers, including UB, have been buffeted by the entry of international spirit companies such as Diageo and Pernod, who, with their popular premium scotch brands, have a strong grip on the upper end of the local market for whisky.
It has four different producing units in Scotland. Mallya, who also runs an airline named after his biggest selling beer Kingfisher, is seeking international brands and building a global sales network to compete with rivals such as Seagram Co.
However, reacting to the buzz about the comparatively high valuation of the global deal, the stock price of United Spirit Ltd, the spirit business arm of the UB Group, shed 2. The company owns brands, with 69 factories across India.
The vintage brands, which have a big demand in the developed as well as emerging markets, including India and China, will be the biggest value-addition to the UB basket with the deal. A UB Group official had earlier said it was looking for a liquor company from which it could source aged single malt whisky that could be blended with Indian-made whisky.
He said the UB Group was looking at business five to 10 years from now. With the consumers in the US increasingly preferring Scotch to other liquor and China too consuming more Scotch, there was a huge opportunity for the group to source the brew and market it abroad, the official said. In addition we now have access to international distribution and can look forward to exporting our brands from India.
This is now a great company and is going to a great home. I look forward to working together with him to further build a premium international spirits business. No notes for slide. The UB Group has paid Rs. CAGR 4. Currently trading at Rs Total views 1, On Slideshare 0.
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