Liqour manufacturer Radico Khaitan today said the Government's nod to Diageo Radico Distilleries (DRD), its joint venture with Diageo, for increasing foreign equity to 100 per cent will not have any impact on its shareholding pattern.
"Diageo Highlands BV and Radico Khaitan will continue to have 50:50 stake in the joint venture," Radico Khaitan said in a statement, adding the development will not have any impact on the shareholding pattern. However, it did not provide any details of the proposal.
On Wednesday, DRD received clearance from the government for its proposal to increase FDI from 50 per cent to 100 per cent. However, the government said the approval is subject to to Press Note 1 of 2005, under which any foreign company operating in the country through a joint venture has to seek no objection certificate from its Indian partner before investing in other firms in the same segment.
In the joint venture, Diageo manages sales and marketing of Masterstroke whisky, a semi-premium whisky, pitted against other leading brands such as McDowell's No 1 from United Spirits' portfolio and Pernod Ricard's Royal Stag.
