After opposing it in India for several years, Vijay Mallya has shown an interest to become a member of the Scotch Whiskey Association, one of the world's most influential trade associations.
According to SWA sources, Mallya has offered to resolve the differences with the Edinburgh-based body and obtain its membership.
Negotiations are going on at the moment, the sources added. It is worth noting that SWA does have non-scotch whiskey producers as its members.
When contacted, UB group functionaries said that a formal application for membership has not been filed as yet, though the group will go ahead in case it suits its cause.
After slugging it out for several years, Indian and foreign liquor companies have decided to come together under the aegis of the Federation of Indian Chambers of Commerce and Industry to present a common set of demands to the government in the run up to next year's Budget.
Called the Ficci Forum on Alcoholic Beverages, it is headed by Mallya and includes SWA, BacardiMartini, UDV, AIDA, UB and SWC among others as its members.
In the past, while the overseas liquor industry, led by SWA, has been demanding a reduction in the import duty, its Indian counterpart has been contesting it on the grounds that cheap imported liquor could cause serious injury to Indian liquor companies.
Mallya's quest for a membership of SWA could be driven by his group's enhanced presence in the scotch segment.
While the UB Group already has Black Dog and Scottish Crown scotch whiskies in its stables, it also has a registered company in Scotland by the name of McDowell & Co.
The group is planning to set-up maturation facilities under the Scotland company and thus leverage its assets including real estate.
Typically, a whiskey has to mature in Scotland for a period of three years to enable it to be called a Scotch.
While whiskey below the three-year threshold is available at cheaper prices, the cost rises significantly once the whiskey crosses the threshold.
"By buying whiskey before it attains the threshold level and then maturing it at our Scotland company, we will be able to leverage that segment of the value chain," a UB source said. He, however, added that the final decision has not been taken as yet.
