Major Indian investment in Scotch

By Erikka Askeland
Published on Monday 23 January 2012 02:34

The Scottish whisky industry is set for a multi-million-pound investment boost from India as demand for the tipple grows unrelentingly on the subcontinent.

Scottish Development International (SDI) has confirmed that a major drinks industry firm in India is planning to build a new distillery in Scotland in order to supply the growing middle-class thirst there for genuine Scotch.

And while India’s biggest whisky maker, United Beverages, which owns Scotland’s Whyte & Mackay, has ruled out building a new distillery in Scotland for the time being, the firm has pledged to invest in the expansion of two of its Scottish-based distilleries in coming months.

Mark Dolan, manager of India for SDI, said a “very serious beverage company” that has “been around for over 100 years” was looking at making an investment in a distillery.

Dolan said: “We see interest in India for investment in Scottish distilleries, and [a company] that wants to build a greenfield distillery.” However, he declined to name the interested firm.

He added: “Whisky was once seen as the drink of the elite class [in India]. But the middle class is growing by 100,000 more on a yearly basis so demand for Scotch and malts is growing.”

Meanwhile, industry insiders believe Whyte & Mackay’s Invergordon plant in Easter Ross is ripe for investment.

A spokesman for Whyte & Mackay, which produces single malt labels including Dalmore, Fettercairn and Jura, said the firm is “looking at potential expansion of two distilleries in Scotland” but added that it was “far, far away” from being able to build a new distillery.

Vijay Mallya, who many label as India’s Richard Branson, bought Whyte & Mackay for £595m in 2007 for his United Breweries Group (UB).

And while the firm last week reported a 63.78 per cent fall in net profit, dragged down by a cost increase in raw materials and higher duties in certain Indian states, UB received the nod from shareholders to raise up to $225 million (about £145m), through foreign currency convertible bonds.

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David Ban

Monday, January 23, 2012 at 06:16 PM

If the whisky is made in Scotland- the only way to get the real McCoy- think of the extra tax the Treasury will collect. no3 vistaero interests me- as I explained during a recent Burns Night the Gaels in the 16th. century were quite abstemious as their excellent Island ships went round France and Spain and bought up all the best claret. Whisky was only coming south in Burn´s time. I always think the excess of alcohol drinking in Scotland is similar to the Redmen if the USA when they were forced into the reservations and succumbed to fire-water. With independence all that will change as the Scots will have pride and responsibility.

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іmmigrantwoman

Monday, January 23, 2012 at 05:44 PM

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vistaero

Monday, January 23, 2012 at 05:28 PM

So India is now going to create a country of Drunks and Alcoholics just like Scotland. Congratulations, hope you are going to use the profits of this poison to fund the Hospitals that will have to treat the victims of this evil drug Remember the Scots have always been known for trading in drugs, remember Hong Kong back in the 18 century where the Scots shipped opium to China. They were at that time the biggest drug dealers in the world.

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Finnzz

Monday, January 23, 2012 at 01:25 PM

That'll be Hague well and truly put in his place....excellent news of course. But I wonder what happened to all the uncertainty that the Unionists reported about investment in Scotland. Could that have been lies...

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Neil of Edinburghershire

Monday, January 23, 2012 at 12:40 PM

Why dont they just buy the Johnny Walker plant at Klimarnock? There is also a good local workforce needing jobs.

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