McDowell & Co. is to look at the potential of selling a stake of its business to a private investor, once it has completed the merger of its different units.

The Indian spirits producer, part of Bangalore-based UB Group, said on Thursday it would merge its 10 spirits divisions and spin off its investments business, which would be listed separately. The move, it is hoped, will generate cost savings, chairman Vijay Mallya said.

He went on to say that the company had received expressions of interest from private investors to invest between US$100m and US$200m in the business. Mallaya said the investment was at "a significant premium to the market value today."
 
He added: "We won't drag our feet and will consider a stake sale at the appropriate time."

The merger and investment plans follow McDowell's acquisition in June of rival Shaw Wallace & Co. for US$354m.