Bangalore-based John Distilleries, a group company of Paul John Enterprise, is eyeing to raise Rs 150 crore through the private equity route to fuel its capacity expansion.

The company is in discussions with a UK-based private equity fund for this infusion by diluting not more than 25%. Interestingly, this is the PE fund which initially funded Foster's beer during its growth stages.

John Distilleries Limited, an Indian distilling firm with capital of Rs 800 crore, is the 4th largest liquor company in the country in terms of volume. The company promotes its products across India and has an annual turnover of over Rs 600 crore. The company manages to sell over 7.5 million cases per annum.

The company also plans to increase its capacity to 9 million cases a year from the current 7.5 million cases per annum. John Distilleries currently derives majority of its sales from Karnataka, Andhra Pradesh, Kerala and Maharashtra and is expanding its presence to Chattisghar, Rajasthan, Chandigarh, Haryana and Punjab.