Plans for a new GBP6.7m (US$10.7m) whisky distillery in Fife look set to go ahead after a deal between Indian drinks firm Kyndal and Perthshire distiller John Fergus Co, according to reports. 

The two companies have signed a joint-venture agreement to establish a micro-distillery and bonded warehouses in Glenrothes, the BBC reported. The site is expected to be operational by 2015 and have a production capacity of 4m litres. 

“Initially the volume will be low,” Siddharth Banerj, Kyndal's MD, was reported as saying at a media briefing on Friday (11 October). “By 2020 the project will be running on full capacity.” 

The JV will focus on exporting to India, Africa and east Asia, Banerj said, and is likley to generate sales worth GBP3.6m over the next three years. 

Around 15 new jobs are expected to be created. 

"Developments towards rationalisation in import duty structures would open up a large market for Scotch whisky, and Kyndal in partnership with John Fergus & Co would like to maximize this huge opportunity,” Banerj added. 

"Together, we would launch high-quality premium Scotch and ad-mix brands in these markets."

The project is being supported by a GBP1.6m grant from the Scottish Government's Food Processing Marketing and Co-operation Scheme (FPMC). 

Planning permission for the 17-acre site was approved in January this year. 

Kyndal Spirits Pvt Ltd UK was set up in 2001 as a vehicle for the management buy-out of Whyte & Mackay

In 2006, Siddharth Banerj led a management buy-out of Kyndal India, prior to UB Group acquiring Whyte & Mackay the following year.