An India-based drinks group is to join forces with a Scottish firm to establish a new multi-million pound distillery in Fife.
The deal between Kyndal and Perthshire’s John Fergus and Company will see the opening of a £6.7 million micro distillery in Glenrothes. Set to come into action in 2015, the site will also house a bonded warehouse.
Primarily, the new distillery and warehouse will be dedicated to the export market. With consistent growth being seen in the emerging markets of India and Africa, as well as a steady strengthening of sales in the Far East, a stand-alone export operation is needed.
Within the first three years of operation, it is expected the new facility will generate exports worth up to £3.6 million.
The deal represents the strength of John Fergus as the economy shows signs of recovery; something other firms have managed through such initiatives as invoice discounting.
To help with the Glenrothes distillery, extra funding has been secured from Holyrood in the form of a Food Processing Marketing and Co-operation Scheme (FPMC) grant.
The £1.6 million FPMC injection is further supported by a £240,000 Regional Selective Assistance grant; earmarked to support the development of new employment opportunities at the plant.
Announcing the news on an Indian trade-boosting trip, the minister for external affairs, Humza Yousaf, said:
“This project is proof yet again that there are strong and positive economic reasons for setting up business in Scotland.”
Yousaf went on to say it is also indicative of the strong business ties between India and Scotland.