Whyte & Mackay is understood to be mulling over a takeover of Glen Moray, the Elgin-based distillery and single malt Scotch whisky brand.

Last week the distillery’s owner, the Paris-based luxury goods giant LVMH Moët Hennessy, said it was putting Glen Moray on the market as part of a wider restructuring of its Glenmorangie business.

Whyte & Mackay, acquired by Vijay Mallya’s Bangalore-based United Breweries Group for £595m last year, is understood to be interested in second- tier malts and in consolidating the supply of spirit for Scotch whiskies as it seeks to tighten its grip on the fast-growing Indian market.

Mallya, called India’s Richard Branson, is also understood to be in a regular talks with Moët Hennessy on issues including potential asset swaps.

A drinks analyst said: “You have to assume that the bigger players such as Diageo, Pernod Ricard, William Grant and Edrington, would have little interest in buying a malt like Glen Moray, since it comes with low brand equity. Maybe it could be a play for Whyte & Mackay, given their ambitions for the Indian market.”

Glen Moray distillery is situated on the western outskirts of Elgin. A former brewery, it became a distillery in 1897 as scores of new distilleries sprang up on Speyside for the rapidly-expanding blending industry. The distillery closed in 1910. Thirteen years later it was purchased by Macdonald & Muir, whose existing Glenmorangie distillery at Tain was also based on a former brewery.

Last week, LVMH said it would invest £45m in its distilleries in Tain and at Ardbeg on Islay but said it would sell Glen Moray as part of a phased withdrawal from the bottling and sale of blended Scotch.

Glen Moray’s output is mainly used for blended whiskies such as Highland Queen, MacAndrew’s and supermarket own-label brands.

Richard Lochhead, SNP MSP for Moray, believes there will be strong interest in the distillery. He said: “Given the success of the brand, I am sure there will be keen interest from the whisky sector and, hopefully, that will ensure the workers at Glen Moray will be secure.”

The distillery employs 17 people.

A spokesman for Whyte & Mackay said: “We do not comment on industry speculation or rumour.”

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