Indian spirits group Radico Khaitan has announced a joint venture with Diageo to develop Indian Made Foreign Liquor (IMFL) brands.

The deal marks Diageo's latest attempt to develop Indian spirits brands after selling its IMFL business four years ago.

Radico said today (21 August) that the venture was subject to regulatory clearance but declined to reveal the financial details behind the agreement.

"The proposed venture will bring together the strengths of the two companies in brand marketing and distribution to create innovative international quality products for the consumer in the IMFL segment," Radico said.

The company added that both it and Diageo would continue to sell their own respective brands in India. Diageo-owned brands including Smirnoff, Johnnie Walker and Ciroc vodka are already sold in India.

Officials at Diageo could not be reached for comment as just-drinks went to press.

In the last year, Diageo has flagged India as one of its key emerging markets alongside Brazil, Russia and China.