The Hindu Business Line : UB chief Mallya to buy Deepak Roy's stake in TDV

THE UB Group Chairman, Mr Vijay Mallya, said he is buying out the industry veteran Mr Deepak Roy's stake in Triumph Distillers & Vintners (TDV) and merge the company with his spirits interests.

Mr Roy holds 15 per cent stake in TDV, which was incorporated following his successful management takeover of UDV's Indian Made Foreign Liquor (IMFL) assets, leaving the 85 per cent in the hands of UB.

"I am buying out Mr Deepak Roy's stake as we are consolidating spirits business into a single entity called United Spirits," Mr Mallya told Business Line.

The UB chief's liquor interests are currently spread across three companies — McDowell & Co, Herbertsons and TDV — with combined annual depletions of 38.5 million cases. The value offered for Mr Roy's stake could not be ascertained.

Mr Roy, who heads TDV as its President and Managing Director, is expected to move into the combined entity in an important top position. According to sources, Mr Mallya is likely to effect significant changes in the top management of his alcoholic beverage business, and in context, Mr Roy's decision to divest stake and move along assumes importance.

TDV's annual depletions are estimated at over three million with the flagship brand, Gilbey's Green Label, accounting for bulk of the sales. The company also has management depth with its top brass consisting of weighted names like Mr Rahul Tandon and Mr V.K. Arora. Mr Roy, one of the few liquor industry professionals to turn an entrepreneur, has had earlier stint with UB where he was associated with success of brands like Bagpiper Whisky.

He went on to head UDV, part of the world's largest spirits giant Diageo Plc, in India, South Asia and Baltic markets before bidding for that company's Indian whisky business when it was put on block in 2002.

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