Pernod Ricard is building a malt spirit distillery in India as part of a €200m ($216.48m) investment in the region.

This month the Maharashtra state government and Pernod Ricard India signed a memorandum of understanding for the distillery.

The distillery, in the industrial suburb of Butibori in Nagpur, is expected to take at least three years to complete and will produce Pernod Ricard’s Indian whiskey brands, such as its Longitude77 range.

While details of the proposed distillery are light, Pernod Ricard claimed it will be one of the largest distilleries in India, with a daily capacity of 60,000 litres of malt spirit.

It also forecast the distillery would use up to 50,000 tonnes of barley a year, which Pernod Ricard plans to procure from local farmers.

Pernod Ricard has 24 facilities in India. Most are fully owned by the group, while some are joint ventures with local companies.

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“This initiative is in continuation of our dedicated efforts to make and innovate in India and we are confident that it will elevate India’s standing on the global map, as a key player in the production of high-quality malt,” Pernod Ricard India CEO Jean Touboul said.

“The establishment of this distillery will provide a boost to various allied sectors in and around Nagpur and the state of Maharashtra. Further, the foundation of the plant will aim to provide local entrepreneurs and the farmer community with new avenues of growth.”

Last year, Pernod Ricard launched the company’s first Indian single malt whisky, Longitude77. It is produced in small batches at the company’s distillery in Dindori, Maharashtra.

The group produces multiple whisky brands in the country, including Blenders Pride, Imperial Blue and Royal Stag, which are all blends of Indian grain spirit and imported Scotch malts. The Blenders Pride recipe incorporates Scotch malts from the group’s Chivas Brothers brand.

India is currently the second most important global market for Pernod Ricard, after the US. Touboul said that he expected it to shift to first place in around 10 to 15 years.