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September, 2006 Pragati Maidan, New Delhi, India |
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UB Group aims for $2.5 bn in ’06 spirits buys
Drinks-to-airline conglomerate UB Group aims to spend up to $2.5 billion to acquire spirits companies in 2006 to expand its liquor business outside its Indian home turf, its chairman said on Thursday. “I want to globalise this business, hence I’m looking at acquisition opportunities in Australia and in Europe,” chairman Vijay Mallya said on the sidelines of an India-China forum in Shanghai.
“The real big one that I’m looking at in Europe will probably be done by 2006-end or early 2007,” he said, adding that he expected the deal to be worth close to $2 billion.
Bangalore-based UB Group also plans to spend $400-500 million on another acquisition in the second half of the year, making it the world’s second-biggest liquor producer after both deals, Mr Mallya said. UB Group, owner of Kingfisher beer, became the world’s third-largest spirits company after its McDowell & Co Ltd unit took over Shaw Wallace & Co for $354 million last year.
The firm’s spirits business, which saw sales grow by over 30% in the first nine months of 2005, also wants to buy into new markets through acquisitions of companies such as mid-price liquor producers in China, he said.
“In China you have the bottom-end of the market with all the local Chinese liquor, and you have the top-end of the market with all imported scotch, but there’s nothing in between,” he said. “This is a unique opportunity.”
Date: 21-Feb-2006
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