| Shaw Wallace to be merged with United Spirits |
| BS Reporter / Bangalore November 28, 2007 |
| The Rs 4,000 crore United Spirits will be merging Shaw Wallace with itself. United Spirits, part of the UB Group, during mid of 2005 had acquired Shaw Wallace for around Rs 1,300 crore. UB Group president & chief financial officer Ravi Nedungadi speaking to Business Standard said that the process of merger will begin pretty soon. This merger will add another Rs 60 crore to United Spirits bottom line of close to Rs 500 crore and around Rs 350 crore to the topline. He further added that the recently acquired Whyte & Mackay for around $1.2 billion will stay as a subsidiary. United Spirits is currently the third largest distiller in the world with sales of over 66 million cases powered by 15 millionaire brands. Shaw Wallace brands which operate in the volume segment have contributed to this growth. Vijay Mallya, chairman, UB Group, speaking to reporters after United Spirits annual general meeting further added that the next fiscal will be a period of consolidation for the group. |
