The Telegraph
Since 1st March, 1999
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Mallya swills 85% of Green Label maker

Mumbai, Dec. 10: In a move that will bring the Gilbey’s Green Label brand of whisky into its fold, McDowell announced that it has acquired an 85 per cent stake in Triumph Distilleries & Vintners Pvt (Triumph) from financial investors in a transaction valued at Rs 60 crore.

McDowell said the remaining 15 per cent stake will continue to be held by Deepak Roy, who will act as president and CEO of Triumph with charge of the day-to-day management. McDowell additionally has a call option on the 15 per cent equity held by Roy at the end of two years. The call option will be exercised at a valuation to be carried out by a mutually acceptable valuer, the company added.

Triumph has acquired the IMFL business in the country from UDV India, including use of the brand “Gilbey’s Green Label” under licence as well as the distillery of UDV India at Nira, Maharashtra. Incidentally, McDowell was also a bidder amongst others for the same.

Speaking at a press meet today, McDowell chairman Vijay Mallya said the acquisition presents a “huge opportunity to lead in the segment, synergise and extract profits”. He added that McDowell’s nation-wide manufacturing and distribution facilities would substantially increase the Rs 15-crore profit annually generated from the acquired brands.

“It is an emotional homecoming given that I started my career in the spirits industry with the UB group. The transaction will further Gilbey’s whisky portfolio, given the UB group’s extensive distribution and marketing muscle,” Deepak Roy, who was also present at the conference, said.

Under the agreement with Roy, McDowell will nominate four of the six directors of Triumph including the chairman. The board will also have two nominees of Roy.

Roy is reported to have had initially approached private equity players that included CDC, Standard Chartered and HSBC to finance the management buyout bid.

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