Deepak Roy, one-time blue-eyed boy of spirit baron Vijay Mallya, has picked up a 5% stake in Mallya’s arch-rival Kishore Chhabria-led company BDA, makers of Officer’s Choice whisky. Officer’s Choice is the second largest selling whisky brand in the country after Mallya’s UB group owned Bagpiper.
This move, according to industry watchers, may trigger off another round of competition given that Mr Roy is seen as a man to contend with in India’s spirit industry. The liquor market hasn’t witnessed any major competitive action after Mr Mallya took over the nearest competitor Shaw Wallace in 2005.
Besides the stake purchase, Mr Roy will also take over the management of BDA as its executive vice-chairman and CEO from November ‘07. BDA is an unlisted company. When contacted, Mr Roy and Mr Chhabria declined to comment on the development.
Mr Roy who rejoined Mr Mallya in 2002 after a decade-long stint with the world’s largest spirit company Diageo, makers of Johnnie Walker whisky, had left UB group in 2005 over differences with Mr Mallya. Mr Roy had hoped to head the combined UB group spirit business now christened United Spirits. However, Mr Mallya opted to appoint long-time confidante Vijay Rekhi to head the spirit business.
This eventually led to the exit of Mr Roy from the group even though Mr Mallya tried unsuccessfully to retain him by offers of alternative posts, including foreign assignments.
Mr Roy who has been behind the success of many UB brands. He headed Diageo’s business in India and Balkan regions and staged a management buy-out of Gilbey’s Green Label whisky before selling the brand to UB group. Mr Roy later joined UB group company Triumph Ditillers & Vintners.
BDA has been a single-brand company for long and Mr Chhabria has been keen to change this status to a multi-brand company that can command a significant market share. At present, United Spirits of Mr Mallya controls about 60% of the 130 million cases spirit market in the country. By the end of the year, Officer’s Choice whisky is expected to cross seven million cases.
Source: Economic Times