The Hindu Business Line : Whyte & Mackay open to expanding ties with SWC

THE UK-based Whyte & Mackay said it was open to expanding its current brand distribution ties with Shaw Wallace Distilleries Ltd, the liquor arm of the Jumbo Group-managed Shaw Wallace & Co (SWC).

Whyte & Mackay, the world's fourth largest Scotch whisky company, said it has conveyed its interest to the Jumbo Group and was watching the developments arising out of the latter's move to sell off SWC liquor business.

Sources said Whyte & Mackay "wanted to broadbase" its existing relationship with SWC and was interested in taking the ties forward and into a "different" format. However, it was likely to unleash a bidding war with two other serious suitors in the fray - UB Group and Mr Ramesh Vangal-led consortium.

"We have conveyed our interest, and will wait for the Manu Chhabria family controlled Jumbo Group to decide on its course of action," sources said.

Besides, Whyte & Mackay Chairman, Mr Vivian Immerman, counted amongst the richest in the UK, is said to have a good rapport with the Jumbo Group Chairperson, Ms Vidya Manohar Chhabria.

Whyte & Mackay entered into an alliance with SWC for the marketing and distribution of its brands such as Vladivar Vodka in the domestic market.

The global spirits major also has plans to shift bottling operations of its rum and white spirits brands to markets such as India in a bid to cut costs, sources said.

It is not clear what impact Whyte & Mackay's interest to expand ties with SWC's liquor business will have on the ongoing bidding process.

It must be mentioned that sources in the Jumbo Group had earlier told this newspaper that the bidding process need not necessarily culminate in the outright sale of the liquor business. Besides, the interest of Ms Komal Chhabria Wazir, the second daughter of the Chhabria estate, to run the business along with a strong strategic partner could also influence the sell off decision, sources said.

Mallya, the highest bidder?

Meanwhile, unconfirmed information suggested that the UB Group Chairman, Mr Vijay Mallya, has emerged as the highest bidder for SWC liquor business with a valuation price close to Rs 1,200 crore.

The Ramesh Vangal-led consortium was placed a close second, by these sources, at around Rs 1,100 crore. There was no independent confirmation of the news. McKinsey Singapore, which called for bids, had asked potential suitors to submit their bids by January 12. SWC liquor business with brands such as Antiquity, Royal Challenge, Director's Special and Haywards sells about 15 million cases annually, and is the second largest domestic spirits operations.

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Whyte & Mackay open to expanding ties with SWC