UNITED Distillers has welcomed media reports in India of government

approval there for a proposed joint venture between UD and UB Group of

India. Under the plans, the joint venture company will produce high

quality Indian whisky and bottle bulk Scotch locally.

If the deal has been approved, it opens up a major new market to UD,

one that has been closed to imported spirits since the early 1970s.

Initial production of some 50,000 cases of Indian distilled whisky and

30,000 cases of locally-bottled Scotch will be aimed at the emerging

Indian middle-class and at re-exports.

A new bottling facility is planned near Bombay and the two partners

will jointly contribute some #3m in equity towards the new venture. ''We

look forward to developing the outstanding opportunities that we believe

exist in India'' said Mr Anthony Greener, chairman of UD's parent

company Guinness.