With Mallya on top, liquor on a high in '06

The liquor industry remained on high spirits in 2006 with the insatiable Vijay Mallya making strides on foreign shores, while foreign companies, including the formidable Diageo, went for a foothold in Indian market.

Mallya made it known that for him 'enough is not enough'. He refused to be cowed down when his spirited Rs 3,000 crore bid for France's Champagne Taittinger failed.

Within months of the failure, the liquor baron announced that his UB Group would acquire winemaker Bouvet-Ladubay, a subsidiary of Taittinger, for $15 million.

Mallya, who is also looking at foraying into China, entered into a tie-up with the Russian Standard Group for distribution of each others' products in India and Russia.

UB is also in talks with White and Mackay for a possible buyout as it intends to enter the high-profile European Scotch Whisky market.

And just as the Indian liquor giant moved to new locales, Diageo, the global spirits major, formed a 50-50 joint venture with Radico Khaitan to roll out products in the Indian Made Foreign Liquor (IMFL) segment.

Diageo, which has a huge repertoire of brands like Johnnie Walker-Black Label, Black & White, VAT 69 and Smirnoff, is gearing up to launch a new whisky brand in India through the joint venture.

It also plans to buy a domestic wine company as it intends to produce wine in India. On its part, Radico Khaitan is also looking at expansion on a stand-alone basis and has kept aside around Rs 150 crore for organic and inorganic growth.