McDowell is believed to be in an advanced stage of discussions with a domestic firm to acquire one of its brands on a lease-basis with an option for acquisition at a later stage.

Enhancing its product portfolio in the Rs 350 to Rs 450 price range through brand acquisitions was one of the growth plans adopted by UB group chairman Vijay Mallya. The company is also roping in design houses to develop new packaging for its products.

When contacted, McDowell & Co Ltd managing director Vijay K Rekhi confirmed the move saying: ``Talks are on with the company.'' But he declined to name either the brand or the firm since both the companies were still to reach any agreement on this.

In order to increase the visibility of its existing brands and to achieve higher sales growth, the company has embarked on a three-pronged strategy. The game plan involves offering a newreward scheme to ensure that profitability is firmly established along with growth as a key parameter in the mind of every employee.

McDowell is likely to utilise Internet technologies to communicate with both customers and suppliers. In addition to this, the company would ensure that SAP R/3 is being implemented across all units. The IT initiative is expected to bring in tangible business benefits in terms of both value delivery and cost control.

McDowell has a unique place in the global beverage alcohol industry being one of only two companies in the world to own six or more millionaire brands. The company is planning to further strengthen its brand franchisee by investments in the coming years.

The company was also in the process of pumping in more funds into brand building. During the current fiscal the advertisement budget for McDowell brands would be Rs 45-48 crore against Rs 30 crore spent during fiscal 1998-99. This is in addition to a Rs 100 crore which will go towards capacity and technicalupgradation of its facilities.