The Telegraph
Since 1st March, 1999
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Shaw Wallace hunts for buyout targets

Calcutta, Sept. 16: Liquor major Shaw Wallace & Company told shareholders at its annual general meeting today that it had appointed management consultant McKinsey & Company to scout for takeover opportunities. Shaw Wallace has also asked McKinsey to chart a roadmap for the company’s growth over the next three years.

Alongside, Shaw Wallace is looking to upgrade the capacity of its production facilities. The company has already completed the expansion and upgradation of its unit at Aurangabad.

“The key objectives are expansion of business portfolio through new initiatives, strengthening brand equity of existing best-selling brands and creating brand extensions in the mid-priced and low-priced segments,” Shaw Wallace director R. A. Shah told shareholders.

Shaw Wallace hinted at the possibility of entering the country liquor segment. “In India, country liquors sell roughly three times Indian-made foreign liquors (IMFL). This segment therefore offers great potential for growth for an organisation like ours that has a countrywide distribution network,” Shaw Wallace said.

In the IMFL segment, Shaw Wallace said it had tied up with wine-producers overseas to sell their products in India. Shaw Wallace has a partnership with liquor major Kyndal International. It has launched a brand of vodka from Kyndal’s portfolio, and said, it had plans of introducing more products from its partner in the near future.

Ready-to-drink is another segment on which Shaw Wallace is focusing. “A beginning has already been made with the launch of VEBA in Goa and Mumbai in association with Kyndal, and the company is firming up plans for an aggressive nationwide rollout,” Shah told shareholders.

Shaw Wallace’s beer business has been converted into a 50:50 joint venture with SAB Miller — the world’s second largest brewer. Its large brewing capacity and multi-location presence gave it significant advantages over competitors, Shaw Wallace said.

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