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Historic Moment: Mr Vijay Mallya, Chairman, Shaw Wallace & Company Ltd, entering the Shaw Wallace House in Kolkata for the 59th annual general meeting of the company on Wednesday. - A. Roy Chowdhury

Kolkata , Sept. 21

SHAW Wallace & Company will keep its independent corporate identity for the time being, even as the company's operating businesses are being merged with United Spirits Ltd. The process of operational merger is expected to be completed within a month or so.

Announcing this at a press conference here on Wednesday, the Chairman of Shaw Wallace, Mr Vijay Mallya, said there were many pending issues to be resolved before the legal merger of Shaw Wallace with United Spirits.

Post merger, United Spirits will have about 130 spirit brands. The number of brands will be reduced in due course through phasing out, sales and licensing.

Without specifying the number of brands to be reduced, he said there were 35 brands accounting for about 90 per cent of the total business of the merged corporate entity.

Mr Mallya said, "It was a very emotional and momentous occasion for me when I was entering the Wallace House here today... I have ultimately achieved victory at the cost of huge investment." He said his investment to acquire equity stake in Shaw Wallace should not be treated merely as emotional consideration. "I have made it on business consideration too," he said.

Earlier, replying to shareholders' questions at the company's 59th annual general meeting, Mr Mallya said he would consider the suggestion of maintaining the company's registered office in the city, although a move to shift the office to Mumbai had been obtained by the erstwhile promoter of the company at the 55th AGM in 2001. Moreover, necessary formalities in this regard had also been complied with and the matter was pending before the Company Law Board for final hearing.

He agreed to consider a request on payment of dividend for the current year, which will end in March 2006, commemorating the company's golden jubilee celebration. However, he made it clear that all business operations of the company would be merged with United Spirits Ltd, an amalgam of McDowells, Herbertsons, Trimuph Distillers & Vintners and Shaw Wallace.

It was explained that the controlling equity stake ( about 54 per cent) in the company was purchased earlier this year by the UB Group from the Dubai based Jumbo Group, the objective of the substantial investment being to achieve good operating results. The integration of all businesses belonging to the UB Group was necessary for this, and this would be done in a fair and transparent manner. Mr Mallya gave full marks to the West Bengal Government for "drastically" improving the city's infrastructure in the last couple of years.

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