United Breweries (UB) and the UK brewer Scottish & Newcastle (S&N) have jointly purchased strategic partner Ravi Jains 20% stake in Millennium Alcobev (MABL) for about Rs. 18 crore. The deal marks a significant step towards the merger of MABL with UB.
"We have completed the transaction to acquire Mr. Jains stale valued between Rs 15 crore and Rs 20 crore," said a top UB official. UB and S&N will equally split Mr. Jains 20% stake. Incidentally, Mr. Jain will attract a three-year non-complete clause.
This could keep the 58 year old professional-turned-entrepreneur out of the alcoholic beverage sector for a while which is significant as Mr. Jains exit comes at a time when a host of global brewers are charting their India entry plans. Mr. Jain, an acclaimed brand builder in the domestic Alcobev domain, was the former MD of Shaw Wallace (SWC) before joining hands with UB chairman Vijay Mallya to start MABL.