Competition is hotting up in Scotch whisky after Bacardi said it had finalised a deal to buy land in Scotland in order to build a new facility.

The Bermuda-based drinks group said it had signed a deal to buy a 43ha stretch of land in central Scotland, set to be developed for second maturation, blending and storage of its portfolio of Dewar's Scotch whiskies.

Many Scotch makers are eyeing expansion on the back of rising exports and high anticipation over India's agreement to lower import tariffs on wine and spirits.

Bacardi's planned new facility is to be based in South Lanarkshire and will form part of the its US$250 million (£118.7 million) Scotch sector expansion over the next 10 years. It is a direct response to growing demand for Dewar's in Asia and other emerging markets, the group said.

Construction on the new facility is not expected to be completed until 2018, but the first part of the plant is planned to be operational by 2009 - capable of handling around one million casks.

Bacardi's announcement follows a similar statement by fellow drinks maker Diageo last month, after local councillors cleared the group's proposed £40 million malt distillery. Diageo has its own £100 million expansion plan for Scotch whisky.

The Scotch Whisky Association said India's commitment to lower import tariffs is driving expansion among both large and small distillers.