As part of this plan, the company is planning to tie-up with Morrison Bowmore for using its expertise and facilities in Scotland.

The company is also planning a major expansion of its wine business. To increase its wine produce, it is planning to get into grape farming.

The company has sought the cooperation of the Karnataka government for buying land in the state to set up a vineyard and a winery.

A senior official of the company said, "The expansion of the wine business and the setting up of Shaw Wallace Scotland are part of the company's plans to increase its market size and product portfolio."

As part of this plan, the company is scouting the Scottish markets for acquiring a distillery in that country. To begin with, the company is planning to introduce three ranges of Scotch for the European market. It also has plans of importing scotch made in Scotland to its Indian and middle eastern markets.

Sources said, "One of the reasons behind the company's plans for starting operations in Scotland is the opening up of quantitative restrictions (QRs) in India. Its facility in Scotland will be used for making Scotch and exporting it to India." "Like many other players, Shaw Wallace has no plans of marketing any other international brands in India after the QRs open up," added sources A senior official of Shaw Wallace said, "As per this alliance, Morrison Bowmore will lease its distillery to Shaw Wallace for making Scotch. It will also be selling concentrate to Shaw Wallace India for manufacturing whisky in India." The company already has an existing business relationship with the Scottish company as Shaw Wallace is one of the largest buyers of blends from this company.

The expected boom in the wine segment in India in the next ten years or more is the reason behind the company's plans to expand its wine business. A senior official of the company said, "Wine is a segment in India which remains untapped but is very promising. We have therefore chalked out a long term plan for our wine business in the country." "Hence the decision to buy land in Karnataka (where the best variety of grapes can be grown) and convert it into vineyards and increase our wine produce," he added.

The company is planning to introduce a whole new range of wine for the Indian market. These wines, according to the official, will meet international standards. The company is also likely to seek technical expertise from a foreign wine maker, revealed the official.