On May 16, 2007 India's United Brewery (UB) Group, the world's third-largest maker of spirits, acquired Whyte and Mackay (W&M) Ltd., a Scotch Whisky making company in the Scotland, with $281 mn turnover, for £595 mn (US$1.2 bn). The synergies from the acquisition are expected to benefit both the companies. This acquisition is going to be one among the largest outbound acquisition by an Indian Company and it will make the UB Group a global player. Since Scotch has growing world wide demand, the UB Group intends to grow their business aggressively with the help of this acquisition. At the same time, the value offered by the UB Group does not seem cheap; however, UB Group has concentrated only on the inventory and brand image of W&M. The case study also highlights about the national and international market and the demand for scotch. It discusses the various facets of the acquisition.

Until today, the only missing link in our portfolio has been Scotch and due to the shortages and rapidly increasing prices of Scotch whisky, we needed a reliable supply source to secure our future considering we use Scotch in our Indian blends. The potential for premium Scotch whisky in India is enormous and, with the acquisition of Whyte&Mackay, we now have a strong portfolio of internationally-recognized brands that we will immediately introduce into the Indian market.

With Bagpiper, United Spirits Ltd. (USL) has the largest-selling `non-whisky' brand in the world. With Whyte and Mackay (W&M), Chairman Vijay Mallya will own the real McCoystraight from the land of bagpipers. The acquisition of W&M, a privately held company, after months of ayes and naysand scotching of scuttlebuttmakes USL a true-blue big boy in the global liquor league.USL under Mallaya's flagship entered the top five league by volume in 2002 and displaced Bacardi from the fourth slot in 2003. The company today is the third largest spirits marketer in the world after Diageo and Pernod Ricard with sales of 60 million cases.`USL sees strategic revenue growth opportunities from W&M acquisition. W&M recorded sales of nine million cases in the last 12 months and USL recorded sales of 66 million cases for the year ending March 31, 2007. With this acquisition, USL will have a consolidated sale of 75 million cases per annum'.

United Brewerys, UB, Acquisition, Scotch Whisky making company, Whyte and Mackay, W&M, Industrial Credit and Investment Corporation of India, ICICI, Global industry, World Trade Organization, WTO, Indian Made Foreign Liquor , IMFL.