New £6.7M distillery to boost exports and jobs

By Michael Stones

- Last updated on GMT

Related tags Scotland Middle east

The joint venture is expected to boost whisky exports by £3.6M over three years and to create 15 jobs
The joint venture is expected to boost whisky exports by £3.6M over three years and to create 15 jobs
Perthshire whisky distillery John Fergus & Co has teamed up with Indian alcoholic-beverages company Kyndal to invest £6.7M in a new Glenrothes distillery, which is expected to lead to exports worth £3.6M and to create 15 jobs.

The project, which will create a new malt distillery and bonded warehouse, received £1.58M funding from the Scottish government’s food processing marketing and co-operation scheme. About £240,000 was also received from a Scottish Enterprise’s regional selective assistance grant.

The new distillery is expected to become operational in in 2015 and will generate £3.6M in export sales over three years.

Ian Palmer, md of John Fergus & Co said the distiller had selected India as its main target market. “We chose India as our principal market because of its excellent long-term growth potential and its entrepreneurial spirit,”​ said Palmer.

Humza Yousaf, Scotland’s minister for external affairs and international development, said that the investment was “reason to celebrate our strong relationship with the Indian business community and an example of why we should seek out more collaborations”.

Collaboration between Scotland and India

Rooma Bussi, India country manager at Scottish Development International, part of Scottish enterprise, welcomed the project. “This is an exciting project, which demonstrates the growing opportunities for business and collaboration between Scotland and India,”​ said Bussi.

Kyndal makes and distributes premium alcoholic brands in the Indian sub continent, Far East and the Middle East and runs sales offices across India.

“India is one of the world’s fastest growing economies and Scotland already has a strong relationship with some of the country’s largest companies,”​ said a statement from Scottish Enterprise.

Whisky exports to India total about £200M, with Indian investors supporting more than 2,700 Scottish jobs.

More than 2,700 Scottish jobs

Scottish Development International has offices in Delhi, Mumbai and Hyderabad, with staff who can advise Scottish companies on entering the Indian market.

Talks between India and the EU on a free trade deal are continuing. A deal could lead to cuts in tariffs across a range of products, including whisky. At present India levies a 150% duty on whisky imports.

Kyndal Group was established 11 years ago as a wholly-owned subsidiary of Whyte & Mackay. The group was later acquired by India’s UB Group and was later the subject of a management buyout.

The firm employs more than 100 people in India and runs sales offices and warehouses throughout the country.

Meanwhile, in July new Diageo boss Ivan Menezes reaffirmed the drinks giant’s commitment to premium brands in India, China and Brazil. “Our focus in the past few years is we have acquired businesses in Brazil, India and China​ with local brands – but they are all at the premium end.”

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