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K. Giriprakash

Bangalore, Jan. 24 Liquor company United Spirits plans to acquire three more distilleries as well as enter into third-party contracts with six more as it aims to increase its volumes 33 per cent to 100 million cases between two-three years.

The United Spirits President and Managing Director, Mr Vijay Rekhi, told Business Line the investments for these acquisitions as well as for capex are currently being worked out.

“We want to maintain our market leadership as well as grow in our business.

Hence, we need to plan for the future,” Mr Rekhi said.

The company has a total of 67 distilleries which includes 29 owned, 24 on contract and 14 associates.

Mr Rekhi said the company is also planning to acquire companies or brands in the cognac, liqueur and flavoured product space.

“There are several candidate companies as well as brands and we are considering some of them,” he said. He said even though United Spirits has more than one distillery in most States, there are no plans to merge them into single entities in each State as they may not turn out to be a practical move.

“We should take full advantage of the scale of operations we have,” Mr Rekhi said.

During 2006-07, United Spirits sold about 66 million cases which is expected to increase to 75 million cases during the current fiscal.

United Spirits is also consolidating its brand portfolio by bringing all the acquired brands as well as its own under the McDowell brand. For example, Gilby’s Green Label is now McDowell’s Green Label.

The liquor major has also introduced innovations in packaging by launching products in PET bottles and cartons.

Mr Rekhi said United Spirits’ association with the Derby has helped the company to market its brands better.

The Mumbai Derby is being sponsored by McDowells for the last 26 years and its association will continue for another four-five years.

The company’s Black Dog brand is the sponsoring brand for the derby and the event will showcase the entire portfolio of the company.

The event will also have several Indian fashion designers displaying their wares.

“The McDowells Derby is an extremely good occasion for the company to showcase its brands as well as the aspirational values it brings along,” Mr Rekhi said.

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United Spirits plans acquisitions to increase volumes

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