UB spirits biz under one umbrella soon

The $2-billion UB group, which recently acquired Shaw Wallace, would bring its widespread liquor business under one single entity 'United Spirits' and list the same by March 2006, group chief Vijay Mallya said in New Delhi.

During the process of restructuring, there would be no more acquisitions and takeovers, said Mallya, a Rajya Sabha MP, who completed financial closure for the Rs 1,300 crore (Rs 13 billion) acquisition of Chhabria's stake in Shaw Wallace five weeks ago.

Mallya, whose UB Group emerged as the second-largest spirits producer in the world after Diageo, said all the listed companies, as also the acquired ones would be clubbed together and merged into the proposed United Spirits where the promoters would have 54 per cent equity.

"We will merge all our spirits companies into one legally and will complete the process by March 2006. By this time we will finish everything, restructuring and rationalisation of the group's business and brands," Mallya told PTI.

During the process of restructuring, the UB group would amalgamate operations of its listed companies McDowell and Company, Herbertson besides its private company Triumph Distillers and Vintners.

Asked if he was still in the market for further takeovers, he said: "My hands are full after Shaw Wallace. We just completed financial closure five weeks ago and are under the process of restructuring."

PricewaterhouseCoopers, Haribhakthi & Co and Accenture have been contracted by the UB group to assist it to complete the restructuring.