Mason & Summers to float IPO

Mason & Summers Alcobev Ltd (M&S), the spirits company promoted by Ramesh Vangal, plans to float an initial public offering.

"The vision is to become the second largest spirits company in the next year or two, with sales in excess of 10 million cases," said Vangal, former president (Asia Pacific) for PepsiCo Foods and former Asia Pacific head of Seagram.

Vangal, in his capacity as the company's chief mentor, said 2006 will be a year of big announcements for M&S, including acquisitions of brands and distilleries.

Though M&S currently has only whiskey brands, Vangal said that all segments of the alcoholic beverages business will be explored including beer. "We would like to be in the entire chain of the business," he said.

Providing the rationale for going public, Vangal said, "The idea is to create value that will be held publicly. It is the best way to realise value." Katra group has diverse interests that includes leisure, agro-science and healthcare to name a few.

The vision to cross the sales in excess of 10 million cases annually in the next two years would effectively topple the second largest liquor company, Radico Kaithan, which has approximately 12 per cent market share in the 110 million cases (12 bottles each of 750 ml) annual spirits business in India. Vijay Mallaya's UB Group, with leading brands in its fold (owned by United Distilleries and Shaw Walleye), controls 55 per cent of the spirits market in the country.

Of the 110 million cases, 60 per cent comes from whiskey, 20 per cent from rum, 18 per cent from brandy and the rest from white spirits like gin and vodka. Vangal said that promoter group, Katra, is a $400 million company and 'money would not be a constraining factor' when the group finds the right buy "� for both distilleries and brands.

M&S today has three brands "� Glen Drummond, a locally bottled single malt Scotch whisky, Royal Crown, a Scotch blended grain-based spirit and Wild Horse Whisky a spirit brand.