Friday, March 9, 2007

Indian management conducts buyout of Whyte & Mackay’s Indian operations

The Indian management of Scotch giant Whyte & Mackay’s Indian subsidiary Kyndal India has conducted a management buyout of the latter. The MBO was led by the Indian chief Siddharth Banerji. Mr. Banerji was part of the management buyout of Whyte & Mackay in 2001, then backed by current owner of Whyte & Mackay Mr. Vivian Immerman, who later took charge of the Scotch major. Mr. Banerji has acquired Kyndal India giving him control over the regional distribution of global spirits brands like Remy Cointreau and Absolut Vodka amongst others. The details of the transaction have not been disclosed.

Kyndal will not be involved in the domestic operations of Whyte & Mackay. The deal comes in the wake of the Vijay Mallya-led UB Group’s advanced stages of talks to acquire Glasgow-based Whyte & Mackay for about $1 bn. It is learnt that the trading company Kyndal, which is former name of Whyte & Mackay, has a gross turnover of about Rs. 80 crores.

Kyndal would now be positioned as a brand distribution and marketing company focusing on the emerging lifestyle segments of the premium spirits market. Besides Remy and Absolut, Kyndal will also handle the malt spirits portfolio of another Scotch major Morrison Bowmore, which is controlled by Japan’s Suntory. Kyndal is also expected to unveil partnerships with Dutch liqueur company Lucas Bols and a not-yet revealed French entity to bring in premium brandy. The company has bought out the regional brand rights of economy scotch brand Kilt, which is likely to be locally bottled sometime in future.

Read more in The Economic Times article.

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