Kyndal Group, an India-based manufacturer, importer and distributor of spirits brands, has formed a joint venture (JV) with Scottish distiller John Fergus to construct a new distillery at Glenrothes in Fife, Scotland.

The facility, which is expected to be operational by 2015, will house a micro distillery and a bonded warehouse.

The Glenrothes distillery will have a production capacity of four million litres.

Kyndal Group managing director Siddharth Banerji said they are hopeful to begin the commercial production by 2015, however, initially the volume will be low.

"By 2020, the project will be running on full capacity," Banerji added.

The facility, which will built on a 7ha site, had received planning permission in January 2013.

The new facility will mainly focus on exporting spirits brands to India, Africa and the Far East markets, and is expected to generate exports worth £3.6m during the next three years.

The Food Processing Marketing and Co-operation Scheme (FPMC), a Scotland government initiative, has granted £1.6m for the construction of the new distillery.

Scotland External Affairs and International Development Minister Humza Yousaf said this project is proof yet again that there are strong and positive economic reasons for setting up business in Scotland.

"It is also another reason to celebrate our strong relationship with the Indian business community and an example of why we should seek out more collaborations," Yousaf added.