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. |
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| "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." |
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| 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. |
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| 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. |
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| 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. |
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| "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. |
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| 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. |
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| "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. |
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| 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. |
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| "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. |
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| "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. |
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