The Hindu Business Line : UB, Vangal consortium in fray for SWC liquor biz

THE global liquor giants have kept themselves away from the bidding process for Shaw Wallace & Co's (SWC) liquor business, leaving the UB group and a consortium of investors led by Mr Ramesh Vangal as the two serious suitors in the fray.

However, the possibility of a bid from within the Manu Chhabria family through the second daughter, Ms Komal Chhabria Wazir, remains real, according to sources.

McKinsey Singapore, which called for bids on behalf of the Chhabria family-controlled Jumbo group, has asked the potential suitors to rush in their bids by January 12 even though it is not clear what shape the interest of Ms Wazir would take in the days to come.

None of the significant players involved in the Indian liquor industry's biggest consolidation game were available for comment.

It is learnt that McKinsey has asked the bidders to submit the enterprise value for SWC's liquor business after the due diligence by next Wednesday, following which the Jumbo group would initiate deal-making talks with the preferred bidder.

The sources said that the list of what would be the final line-up of bidders was perhaps disappointing with an array of multinational liquor companies already present in India deciding to stay away from the bidding process for the second largest domestic spirits operations.

SWC's liquor business closed 2003-04 with annual depletions of nearly 15 million cases, way behind the UB group's 38.5 million cases. Seagram India, part of the French drinks giant Groupe Pernod Ricard, dropped out of the bidding process in the early stages.

While UB and Mr Vangal, backed by foreign funds such as Newbridge, are serious contenders, all eyes are on Ms Wazir and her moves, which is bound to have a significant bearing on the entire bid process.

The 33 year-old Ms Wazir is an Executive Director in SWC and has been managing the company on behalf of the Jumbo group since the late 90s.

Sources expect her to tie up with a partner and work out a joint management deal after the potential suitors submit their bids.

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