Radico Khaitan is setting up a Rs 85 crore grain based distillery in Upin in what is perhaps the first major attempt by a domestic firm to compete in the US and European Markets where whiskies are made of grain ,not molasses. Radico hopes that once its 27m-litre distillery starts production it will gain entry into the lucrative European Market. The EU continues to adhere to to the norm of only"only whisky produced from grain." Though Indian Whisky manufacturers have complained to the European Commission ,the EU has not taken favorable action thus far. Radico group chairman Lalit Khaitan said" We are setting up the largest grain based distillery in the country. There are some stand-alone distilleries producing grain-based spirit,but they are too small to make a mark in the industry." Domestic whisky makers havent explored whisky production from grain so far largely due to the abundant supply of molasses in the country.