A new £6.7m distillery is to be built in Fife.

The facility is a joint venture between Indian drinks group Kyndal and Perthshire distiller John Fergus & Co.

The two firms will come together to create a micro distillery and bonded warehouse in Glenrothes and will focus on exporting to markets in India, Africa and the Far East.

The project is being supported by a £1.6m grant from the Scottish government's Food Processing Marketing and Co-operation Scheme (FPMC), while Scottish Enterprise is providing a £240,000 Regional Selective Assistance grant to support employment at the new distillery.

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News of the project was unveiled by Minister for External Affairs Humza Yousaf on a visit to India.

He 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."

The facility at Glenrothes could be operational by 2015 and is expected to generate exports worth £3.6m over the next three years.

(JP/IT)