The Hindu Business Line : Vangal in talks to buy 51% in Whytehall

MR Ramesh Vangal has initiated talks to acquire Bacardi's 51 per cent stake and management control in Whytehall India Ltd in a bid to re-enter the liquor business. Informed sources said negotiations were in active mode and would conclude shortly.

Whytehall, formerly Whyte & Mackay, is currently a 51:49 joint venture between Bacardi International and Radico Khaitan dealing in Indian Made Foreign Liquor (IMFL). Bacardi had bought into the company three years ago when it acquired Whyte & Mackay's stake through an overseas transaction. The company owns flagship brand Whytehall Five Deluxe Whisky.

Mr Vangal did not respond to an email query as his office here indicated that he was in the midst of overseas work. Incidentally, Mr Vangal a few weeks ago had indicated to this newspaper that he could be closing a transaction soon. Mr Shobhan Roy, President of Whytehall India Ltd, and Mr Jayant Kapur, Managing Director of Bacardi Martini India Ltd, were unavailable for comments.

Even though there is no clarity on the structure of the deal, it is believed that Mr Vangal would route his investment through a still undisclosed company, which he floated last year, to make investments into the spirits sector. It must be mentioned that he has already recruited a few top raking professionals from Seagram as part of his fresh plans. Mr Vangal, a strategic investor, steered Seagram into India in the early 90s and was at the helm of Seagram's Asia-Pacific operations. He exited the company last year following its sale to French drinks major Groupe Pernod Ricard, but maintains close ties with the Bronfman family that controlled Seagram previously.

Over the last one year, Mr Vangal was seen in talks with the prominent names in the Indian liquor industry, including Mr Vijay Mallya and the Chhabrias, to make a return to the sector. Sources said Mr Vangal's impending moves would be significant for the IMFL industry as he reportedly had the backing of Thailand's Pacific Spirits, which controls the Scottish company Inver House. Sources also claimed that Mr Vangal has reached an understanding with some influential bottlers in the domestic liquor business.

The deal would mean Bacardi will dilute its interests in the IMFL sector and focus only on its popular international portfolio of rums and RTDs through Bacardi Martini India Ltd, which is a joint venture with the Mysore-based Gemini Distilleries. Bacardi invested into Whytehall with the aim of making a dent into the large IMFL market but remained rather subdued in its endeavours.

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