Chhabria in JV with German company

After being silent on the marketing front for long, Kishore Chhabria- and Deepak Roy-promoted Allied Blenders & Distillers (formerly BDA) have formed a 50:50 joint venture with the German company Henkell & Söhnlein Sektkellereien KG Wiesbaden.

"We were waiting for the right time and opportunity," Deepak Roy, executive vice-chairman and CEO Allied Blenders & Distillers (ABD) said.

The joint venture will market and manufacture Wodka Gorbatschow, a premium vodka brand in the country. The brand will be locally bottled at ABD's Aurangabad plant in Maharashtra. ABD is aiming to capture 10 per cent of the premium vodka market with Wodka Gorbatschow this year.

This venture also marks the beginning of ABD's transformation into a premium liquor company. "We are working towards becoming a premium brand company since there is immense potential at the premium level," Roy said.

The company, which has brands such as Officer's Choice and Class Vodka, hopes the introduction of Wodka Gorbatschow will catapult its image to a premium distiller. The brand is pitched against Diageo's vodka brand Smirnoff.

The company is looking at entering new categories to complete its product portfolio in the country. "We plan to introduce a premium rum brand for the domestic market in the near future," Roy added. The company may also look at introducing wines.

The company will initially support the new brands with internal accruals. "Once we complete our portfolio, we shall look at generating additional funds through an IPO," Roy said. The company's new strategy will add to the sales of flagship brand Officer's Choice, although it may not be a premium offering.

ABD chairman Kishore Chhabria is remembered for waging a decade-long tussle with the UB Group chairman Vijay Mallya for controlling Herbertsons. Deepak Roy on the other hand has been associated with both UB Group and Diageo in the past.