INDIA: United Spirits gets Balaji Distilleries merger approval
United Spirits took control of Balaji Distilleries back in April
United Spirits has finally been given the green light by Indian authorities for its planned merger of Balaji Distilleries.
The Indian drinks giant, which announced its intention to merge Balaji into United Spirits in late-2008, said yesterday (6 December) that the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) gave the go-ahead on 29 November for the move. Balaji, which has been an exclusive producer of Indian-made foreign liquor (IMFL) for United Spirits since it was formed in 1983, merged with United Spirits on 1 April last year.
As announced in 2008, United Spirits will issue two equity shares for every 55 shares in Balaji, which is based in Tamil Nadu province in the south-east of India.
"This market (Tamil Nadu) is one of the largest and strategically important for United Spirits as it accounts for over 12% of the national volumes of United Spirits," said United Spirits in a statement. "Despite the importance of this market, United Spirits did not own a production facility in the state, depending solely on contract manufacturing arrangements."
Balaji's distillery has a capacity of 12m cases per year. The firm also has brewing operations, which will transfer to its Chennai Breweries Pvt unit. United Spirits will subsequently make Chennai Breweries a fully-owned subsidiary.
United Spirits has secured a stake purchase in Indian bulk spirits manufacturer Sovereign Distilleries....
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- Is Brown-Forman at the end of the SoCo road?
- Is time right for TWE to move for Diageo's wines?
- Will a sexed-up SABMiller tempt AB InBev?
- Are we kidding ourselves over craft spirits?
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo, Treasury Wine Estates quiet on wine sale
- Former Pernod Ricard exec joins Wakefield Wines
- Inver House Distillers posts FY profits leap
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research