Vijay Mallya’s new spirits

IIPM BEST B-SCHOOL

Finally the wait is over! It’s now confirmed that the King of Good Times, liquor baron Vijay Mallya’s United Spirits has snapped up Scottish whiskey-maker Whyte & Mackay (W&M) for a whopping Rs.48.19 billion. After buying out Shaw Wallace for Rs.13 billion in 2005, and French winemaker Bouvet Ladubay (a subsidiary of Champagne Taittinger) for $20 million last year, Mallya, the Chairman of UB Group is on a high. The company has already informed the Bombay Stock Exchange that it has acquired 100% stake in Whyte and Mackay. “The potential for premium Scotch whiskey in India is enormous and with the acquisition of Whyte and Mackay, we now have a strong portfolio of internationally recognised brands that we will immediately introduce in the Indian market and use our strong distribution muscle fully to our advantage,” said Mallya about the acquisition. W&M has brands like Whyte & Mackay Scotch Whiskey, Highland Malt, Isle of Juara Malt Whiskey, Glayva Liquer and Dalmore Single Highland Malt, John Barr, Mackinlays, Cluny and Claymore in its portfolio. Earlier, W&M had said in a statement: “The business is extremely valuable to us on a standalone basis and we understand why UB group has been so interested in acquiring us, given their additional capability to sell and market our brands in all key growth markets, including India and China.” Here’s to some good Scotch then!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative