Mallya sets sights on Scotch label

With Shaw Wallace under his belt, Mallya will be India's largest importer of Scotch.

After acquiring Shaw Wallace, Vijay Mallya is eyeing a Scotch whisky label and has drawn up a list of 10 brands for the purpose.

"In the international market, the business is done is a different way. We have shown our interest to them and are now waiting for their response," Mallya told Business Standard, adding: "We see a branded opportunity in the Scotch market and we will go for it. For us, the brand is the key."

The acquisition of Shaw Wallace from the Chhabria family is likely to be completed soon and this will make Mallya the second largest liquor conglomerate in the world. A Scotch whisky brand will add value to the company's portfolio and give it a strong presence in the overseas markets.

However, Mallya discounted speculation that he was close to buying a distillery in Scotland to meet his requirements of bulk Scotch used for blending in India.

What has fuelled the speculation is the fact that with Shaw Wallace under his belt, Mallya will emerge as the country's largest importer of bulk Scotch.

"We import bulk Scotch whiskey to India for the purpose of blending. In that scenario, I do not want to buy a Scotch whiskey plant for my requirement as buying from multiple vendors will give me a better bargaining advantage in terms of price," he said.

When asked about the funds he had kept aside for the acquisition of a whiskey brand, Mallya said he was confident of raising the required funds.

"When we had to pay Rs 1,300 crore for Shaw Wallace, everyone raised the question about where the money would come from. But I managed. Funding is not an issue for me," he said.

Mallya also said the acquisition of Shaw Wallace had given him a great advantage in terms of one of the largest buyer of raw materials. He is of the view that the company expects a better return on investment to acquire Shaw Wallace as a result of this.

"We can demand the price we want now. We have been squeezed by the trade so far. Now it is the payback time for them," he said.

"Both UB and Shaw Wallace used to spend over Rs 200 crore in challenging each other in the market. I am not saying that we will save the entire, but a substantial portion of it will be saved. Besides, the return on investment was calculated on a very conservative basis. It is always better to out perform a commitment," Mallya pointed out.