W&M is fourth largest producer of Scotch whisky
in the world after William Grant, Pernod Ricard and Diageo.
of United Breweries, considering listing
his international spirits business in the London Stock Exchange.
New York , Oct. 17, 2007
Vijay Mallya, chairman of United Breweries in India, owner of
Kingfisher Airlines, 50 pct strategic stake in US aircraft maker
Epic Aircraft (Oregon) for US $120 million and after buying up
Scotch maker Whyte & Mackay (W&M) for more than half a
billion dollars is considering listing his international spirits
business in the London Stock Exchange.
He said that a London listing would make it easier to raise capital
to fund international deals. He wants to import W&M's brands
into India as well as to China. There is strong demand worldwide
and strong growing demand within India. W&M is fourth largest
producer of Scotch whisky in the world after William Grant, Pernod
Ricard and Diageo.
UK news paper, The Daily Telegraph said the
London listing is unlikely to take place until next year once
W&M's operations have been more closely integrated into the
United Spirits' business. It is also unclear what valuation Mallya
would seek for the company.
Mallya’s United Spirits Ltd (USL) has decided to come in
with single malts, Dalmore and Jura, besides Whyte & Mackay
blended Scotch whisky. USL, India’s biggest and the world’s
third largest spirits marketer.
The government of India waived countervailing duties on imported
liquor to avoid a dispute at the World Trade Organization. Each
state was expected to come up with its own tax structure
Mumbai is the city that accounts for the most whisky consumption
in the country. All the international liquor companies in Mumbay,
have cut their imports drastically since the state introduced
this new duty structure. In the existing duty regime, the retail
prices of premium whiskies have gone up by more than 22% in the
state that increase translates into an average retail price of
Rs3,600 for a 750ml bottle of premium whisky.
The International Spirits and Wines Association of India has
requested the state government to reinstate the earlier duty of
Rs200 per litre for imported spirits. “Putting the duty
back to the old form will result in a price reduction of Rs400-Rs500