Allied Domecq, the pubs and drinks group, is forming a joint venture with Clan Morgan & Co of Delhi to further develop its presence in the Indian spirits market. The new company, Allied Domecq Spirits & Wine (India), will build a pounds 3.5m plant in Rajasthan to bottle Teacher's Whisky. Teacher's is brand leader and holds 35 per cent of the 70,000 case Scotch market in India. Allied Domecq managing director Brian Senior said India was a growth market where foreign investment was increasing. The company will start trading in August and will employ some 200 people. Allied Domecq entered the Indian market in 1994.