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Wednesday, Dec 11, 2002

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McDowell takes 85 pc stake in Triumph

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MUMBAI, Dec. 10

UB Group's Spirits division's flagship company, McDowell & Co, has acquired 85 per cent stake in Triumph Distilleries & Vintners Pvt Ltd from financial investors for a total consideration of Rs 60 crore.

Mr Deepak Roy, who will act as President and Chief Executive Officer (CEO) of Triumph, will hold the remaining 15 per cent. UB has bought out other investors such as Mr Ashok Wadhwa, Managing Director, Ambit Corporate Finance and IL&FS. McDowell has a call option on the 15 per cent equity held by Mr Roy at the end of two years, which can be exercised at a valuation to be carried out by a mutually acceptable valuer. The transaction was approved at the company's board of director's meeting in Bangalore.

Under the agreement with Mr Roy, McDowell will nominate four out of six directors of Triumph, including the Chairman. Two nominees of Mr Roy will also be on the board of Triumph. Mr Roy and a group of investors had recently acquired the Gilbey's Green Label brand of whisky and other assets from Diageo Plc.

Dr Vijay Mallya, Chairman of McDowell, said, "McDowell's nationwide manufacturing and distribution facilities would substantially increase the existing profits of Rs 15 crore per annum generated by the acquired brands. The addition of two million cases in sales volumes will propel UB Group's Spirits division closer to the number four position in the world of international distillers."

The UB Group's Spirits division expects to achieve a sales volume of 30 million cases during 2002-3 and with the acquisition of Triumph, the total sales volume is expected to be over 32 million cases.

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McDowell takes 85 pc stake in Triumph

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