LONDON (AP) — Diageo PLC, the world's largest producer and distributor of alcoholic drinks, said yesterday it is considering a possible deal with India's United Spirits Ltd.

"Diageo can confirm that it is reviewing a possible collaboration with United Spirits," said Cecilia Coonan, spokeswoman for the company, which makes Johnnie Walker whisky, Guinness stout and Smirnoff vodka.

Analysts said such a deal could prove extremely profitable for Diageo by giving the London-based drinks company access to India's fast-growing, but highly protected, national alcohol market.

"The Indian market has immense potential with its rapidly growing aspirational middle class, who put a great deal of weight on Western brands," said Sam Hart, analyst at Charles Stanley Stockbrokers.

Foreign alcohol makers' access to India is currently limited by high import tariffs.

India's basic import duties on foreign wine and spirits are 150 percent, with various government surcharges taking the charge up to 550 percent, depending on the Indian state.

These protections are so great that both the European Union and the United States have brought cases to the World Trade Organisation, accusing India of breaking international trade laws.

India's Economic Times earlier reported that Diageo may buy a 14.99 percent stake in the Indian drink maker, although the newspaper did not identify a source for the claim.

As the market factored the potential cost of a deal, Diageo shares fell 1.5 percent to 889 pence ($13.22) in afternoon trading on the London Stock Exchange.