Early days, say Whyte & Mackay officials; Still time for final call: UB executives. |
With the UB Group acquiring a controlling stake in Shaw Wallace, the strategic alliance between Shaw Wallace and the Scotland-based Whyte & Mackay (formerly known as Kyndal) may be reviewed. |
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Under the agreement, Shaw Wallace is using its infrastructure to bottle and distribute Whyte & Mackay's international brands in the Indian market. |
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Shaw Wallace sources Scotch for its brands from the international spirits company and accesses its distribution network. |
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In addition, Whyte & Mackay assists Shaw Wallace in reviewing its manufacturing and blending processes as well as in training personnel to improve overall quality. |
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The deal was struck by the late Jumbo Group Chairman, Manu Chhabria, in 2001. Chabbria had flown down to Mumbai, his first visit to India after many years, to announce the alliance. |
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When contacted, a Whyte & Mackay executive said: "The UB Group has just announced its acquisition of Shaw Wallace. These are early days and we would not like to comment on the future of our alliance. The tie-up with Shaw Wallace is that of a rolling arrangement." |
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A UB Group executive said, "We will take a decision on the alliance once we get management control in Shaw Wallace." |
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The first Whyte & Mackay brand to hit retail stores in India was UK's number two vodka brand, Vladivar, followed by Veba, a ready-to-drink. |
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Among Whyte & Mackay's other brands are Whyte & Mackay Scotch whisky and Dalmore single malt whisky. Whyte & Mackay is the world's leading supplier of private label Scotch whisky. |
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In 2003, W&M had got the exclusive distribution rights in India for Absolut vodka from Swedish spirits company --V&S Absolut Spirits. Absolut is being marketed and sold using W&M's strategic partner Shaw Wallace's network. |
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W&M entered the Indian market through a joint venture with the Delhi based Radico Khaitan in the early 90s but later exited the Indian market in 1996. It re-entered the domestic market through a tie-up with Shaw Wallace. |
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It has been agressive in making a major dent in the Indian spirits market but did not meet with great success. It had bid for acquiring the mass-market whisky brand Gilbey's from United Distillers & Vinters India but lost out to UB group. |
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Kyndal was also in the race to acquire Shaw Wallace's liquor business but again the verdict was in favour UB group. |
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