McDowell plans to buy regional brands

McDowell & Co is looking at acquiring regional brands in the wines, spirits and beer segment to augment its existing nine millionaire brands.

Vijay Rekhi, president, McDowell & Co Ltd, said: "We have lined up a few regional brands and we are yet to start the process of negotiation. There are a few brands which are good and promising and with our marketing and distribution muscle we can take them further. We will try to finish this process during 2004-05."

He said the company is also lining up a capital expenditure of Rs 25 crore during the next fiscal for plant upgradation and process improvements.

"Business is booming for us and we are looking at increasing the productivity of our units," Rekhi added. The company during the past four years have spent close to Rs 100 crore as part of its capital expenditure plans.

The company also announced that it is launching its nine millionaire brand - Old Cask Rum (OCR) in Karnataka.

"With the advent of new regulations in the State of Karnataka in reducing the Seconds sales, we have the confidence now to launch this brand in Karnataka. The brand has had an astounding success in Tamil Nadu with 96 per cent market share, and we intend to capture 30 per cent of the million cases per year in Karnataka during the first year of OCR in Karnataka."