Radico Khaitan has teamed up with two other Indian companies to build a new distillery in the western state of Maharashtra.

The spirits group confirmed to the Mumbai and National Stock Exchanges yesterday (8 October) that it has created a joint venture with NV Distillers and Riddhi Siddhi to build the greenfield distillery in Aurangabad. The construction, which should be completed in 12 months' time, will cost in the region of INR1.6bn (US$40.7m).

Radico Khaitan will take a 36% stake in the JV, which will be called Radico NV Distilleries Maharashtra, with NV and Riddhi holding the remaining 64%.

The new plant will produce Indian made foreign liquor (IMFL), extra neutral alcohol and ethanol, and will have an annual production capacity of 36m litres.

In August, Radico Khaitan reported that net profit for the three months to 30 June totalled INR120.9m (US$2.98m), against INR132.8m in the corresponding quarter a year earlier. Sales in the period rose, however, to INR1.5bn compared to INR1.4bn a year ago.