Radico Khaitan is setting up shop in Maharashtra, according to local reports.

The spirit manufacturer and producer of 8PM whisky is commissioning a distillery in Aurangabad in the state within the next two months, the Economic Times reported today (20 June).

The INR13.5bn (US$314m) distillery is designed to help Radico Khaitan increase its presence in the state's spirits market by reducing transportation and logistics costs, the paper said.

"The distillery which will produce molasses based spirit will roll out all the existing brands of Radico Khaitan," Radico Khaitan president for sales and marketing, Raju Vaziraney, told the paper.

Maharashtra is seen as a significant market for spirit makers and United Spirits, UB's spirit arm, sells around 6m cases in the region, which consumes 9m cases every year.

Officials at Radico Khaitan told the paper that the company plans to raise the profile of 8PM whisky to a national brand and is hoping to change its position in the Maharashtra market once the distillery commences operations.