India: Pernod Ricard to lay India’s biggest malt distillery foundation on October 7

The Mahayuti regime plans to raise a toast for a Made-in-India scotch project at Nagpur, just days before the election code of conduct comes into force. The foundation for French liquor multinational Pernod Ricard's malt distillery - biggest in the country, will be held on October 7, Times of India reported on September 20.

Deputy chief minister Devendra Fadnavis, Union minister for road transport and highways Nitin Gadkari, state industries minister Uday Samant, and Jean Touboul, CEO and managing director of Pernod Ricard India will be present at the event.

The function for the Rs 1785cr plant was earlier slated for September 26, but was postponed due to Prime Minister Narendra Modi's scheduled visit to Pohra Devi shrine of the Banjara community in Washim, 270km away. While Fadnavis banks on the project to draw investment points in Vidarbha, for Pernod Ricard, the facility would eventually change the dynamics of alcohol blending.

Malt is the basic ingredient of Scotch whisky. Made from barley, so far it's only imported from Scotland and blended in India, giving it the name Scotch. Now, the same malt will be made in India and blended in the flagship brands manufactured by Pernod Ricard, said a source.

The project is slated to change the agricultural landscape in the region with the company promising to promote barley farming in the area. The distillery will need around 50,000 to 60,000 tons of barley in a year. To meet these requirements, barley will have to be cultivated in about 40,000 hectares across Vidarbha region, which may translate to 90,000 farmers. The company is promoting farmers' federation through which barley will be directly procured, said a source.

The first-ever distillery project in Vidarbha may even help reduce the region's agrarian crisis, say sources. Growing barley for the plant is expected to be a major income booster for farmers, said a source.

Spanning an impressive 3.6lakh square metres, the distillery is set to become a landmark in India's spirits production sector. With a daily capacity of 60,000 litre, it will not only be the largest in India but also Pernod Ricard's most significant facility in Asia. Industry experts suggest it could potentially claim the title of the continent's biggest malt distillery.

In February this year, the company had signed a memorandum of understanding (MoU) with the Maharashtra govt. With the initial issues over rate, it had to pay for the land, Pernod is finally going ahead with laying the foundation. Sources in MIDC said it has also made initial payment towards the land cost.

The fresh land deal for the company was finalised last month. The Maharashtra Industries Development Corporation (MIDC), which is offering land at its Butibori estate, agreed to Pernod's stand that it should be charged rates prevalent at the time when the company signed a MoU with the state govt.

When the MoU was signed in February, the rates were ₹1,750 a square metre for land in Butibori. It was later raised to ₹2,000 per square meter, apart from additional charges.

The fresh offer letter was issued to the company which paid 25% of land cost. The construction work is expected to start at the site in due course, said sources. In the meantime, farmers will be readied to provide barley, which is the basic raw material, the source said.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .