Bangalore co set to enter European whiskey mart

The Bangalore-based Amrut Distilleries is all set to enter the European whiskey market, thus far out of bounds for Indian companies as the European Union does not recognise molasses-made Indian whiskey.

To be recognised as whiskey in EU, it has to be made of cereals and matured for at least three years.

Amrut Distilleries managing director Neelkanth Rao said: "Our whiskey is made from barley sourced from the north-western part of the country and is distilled and matured for three years in Bangalore. By late-March, we will begin test-marketing our product."

Rao plans to build on the growing popularity of Indian food and beer in Europe, especially in the United Kingdom. Thus, he is targeting his whiskey at the 20,000-odd Indian restaurants in UK.

The whiskey will be called Amrut Single Malt Indian whiskey and will be positioned as a "genuine" drink of India, Rao said referring to the best selling Indian beer brands in UK which are made locally and not in India.

The product will be priced at par with other single malt whiskies, Rao said, adding: "I don't want to undersell the product. Because of the climatic conditions in India, you can lose as much alcohol in three years as you would lose in 10-12 years in Scotland."

And there are indications other companies could soon follow Amrut Distilleries into Europe.

"At least one more company has made enquiries about launching its whiskey in Europe," Tim Jackson, director of international affairs, The Scotch Whiskey Association, told Business Standard.

For many years now, Indian liquor companies and The Scotch Whiskey Association have locked horns over improved access to each other's market.

While The Scotch Whiskey Association has been campaigning against high import duties imposed by India, local liquor barons have cried foul over the EU insistence on whiskey made only out of cereals.

However, if a producer conforms to the EU norms, he can export his product attracting zero customs duty.

Last week, the government reduced the import duty on alcohol from 166 per cent to 150 per cent and also removed special additional duty of 4 per cent.

Though the cuts were in line with its demands, The Scotch Whiskey Association wants India to reduce the duties further.

The Indian companies, on their part, have demanded better licencing of additional production capacities before the duties are brought down.