Khoday India, a Bangalore-based liquor maker, has said it will soon undertake a capacity expansion by acquiring a bottling plant in Scotland and tying up with 18 bottling facilities in India.
The Rs 250-crore distiller is hoping to double its capacity to nearly 15 lakh cases per annum from the current 7-8 lakh in the next three years. The expansion comes on the back of the company’s drive to expand its export market.
The plant in Scotland has a manufacturing capacity of 15,000 cases per month and analysts peg the value of the deal at Rs 40 crore.
Khoday, the maker of Peter Scot whisky, is expected to fund the acquisition through internal accruals. “The plant would help us extend our presence in Europe,” said Satpal Chaudhry, chief operating officer, Khoday India.
The company is planning to expand its production capacity by entering into contract manufacturing agreements with 18 domestic bottling units. Currently, the distiller owns 11 bottling plants.
The company has recently entered into agreement with international companies to export its flagship products Red Knight Whisky and Hercules Rum. Two containers will be sent to Italy and one to Canada.
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The company also plans to export its products to the US, China, Singapore and Hong Kong markets. It is expecting to earn revenues of Rs 50 lakh by March 2009 through the exports. In FY 2007-08, the company recorded a turnover of Rs 250 crore and is expecting it to touch Rs 500 crore in the next three years.
The company has also decided to extend its presence in wine market, into which it forayed recently. The company is in talks with Italian wine makers to bring in nine brands.
“We have held discussions with two Italian wine companies. We are interested to bring in nine brands of entry, middle and premium segment of wines on an exclusive basis to South India, “ said Chaudhry.