McDowell's offer for the three brands amounts to Rs 250 crore. These three brands have a marketshare of more than 7 per cent in their respective liquor segment in the country, while the volume of sales is about 4 million cases per annum.

UB group president and chief financial officer Ravi Nedungadi told reporters that both United Breweries and McDowell would liquidate several of their non-core holdings in order to fund these acquisitions. ``We have received enquiries from many firms for the purchase of such holdings and interim financial arrangements are in position,'' Nedungadi added.

Shaw Wallace has been facing several winding up petitions filed by its creditors including Hindustan Development Corporation in the High Court and one such petition has been admitted and ordered to be advertised. As on March 31, 1997, total liabilities of Shaw Wallace stand at Rs 260 crore, according to industry sources.

Nedungadi said McDowell had the support of some of SWC's largest creditors to offer cash purchase of these assets in order to fund payment to all aggrieved SWC creditors who have approached the Calcutta HC. ``SWC has also presented two schemes to the court for an arrangement/compromise with its secured and unsecured creditors,'' he added.

All applications, including the hearing of the petition filed by one of the creditors for winding up have been adjourned to October 12, 1999. The UB group is expecting a favourable response including the appointment of liquidator for SWC.

UB may appoint an international agency to conduct the valuation of these brands shortly. ``The asking price of Rs 250 crore has been arrived through internal processes. We are ready to pay a significant amount as upfront money for the proposed acquisition,'' he added.

McDowell, together with other companies of the UB group spirits division enjoys leadership in key market segments of the beverage alcohol industry. Currently, the company does not have a strong brand in the premium segment. Acquisition of these brands would allow the company to plug gaps in its portfolio, according to McDowell managing director VK Rekhi.