Radico to set up Scotch Whisky subsidiary in Scotland

Radico Khaitan Limited has announced plans to expand its international presence with the proposed incorporation of a wholly owned subsidiary in Scotland, United Kingdom, marking a strategic move into the Scotch whisky segment. The development was disclosed through regulatory filings with Indian stock exchanges after the company’s Board of Directors granted in-principle approval for the proposal.

The proposed entity, to be named Radico Khaitan Scotland Ltd or another approved name, will be promoted by Radico Khaitan Limited and incorporated in accordance with the applicable laws of Scotland. The subsidiary will focus on the distillation, maturation, storage and trading of Scotch whisky, liquor and other spirits, and may also acquire and operate a currently functioning distillery in Scotland.

While the total investment amount has not been disclosed, the Board noted that the company will initially subscribe, in cash, to the minimum capital necessary at face value, in line with applicable regulations, as there is no minimum capital requirement prescribed.

The Scotland-based subsidiary will be a 100 percent owned entity and will therefore be classified as a related party of Radico Khaitan Limited. The company has also clarified that its promoters and promoter group do not have any direct interest in the proposed incorporation.