Diageo India to fully acquire Greater Than parent co for Rs 110 crore
BENGALURU: United Spirits Ltd (USL), the Indian arm of global liquor major Diageo, will acquire 100% stake in Nao Spirits & Beverages, the maker of popular Indian craft gin brands Greater Than and Hapusa, in a two-step transaction valued at about Rs 110 crore.
The deal marks Diageo's push into India's fast-growing premium craft spirits segment.
USL, which already owns 30% of Nao Spirits, said its board has approved the purchase of an additional 37,683 equity shares from existing shareholders in two tranches for Rs 53.8 crore. It will also subscribe to 31,820 new equity shares and 27,577 compulsorily convertible preference shares (CCPS) for Rs 56 crore.
Following the completion of the first tranche of the share purchase and fresh subscription, expected by June 27, USL will raise its stake to 97.07%, making Nao Spirits a subsidiary.
The second tranche, comprising about 3% held by one shareholder, is expected to close by June 2026. An interim voting agreement will be in place until full ownership is achieved.
The acquisition is part of Diageo's broader strategy to deepen its portfolio in emerging premium segments. 'With the acquisition of Nao Spirits, we're unlocking new avenues for growth in Indian craft spirits,' said Praveen Someshwar, MD and CEO of Diageo India.
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'The time is right to scale this business using Diageo's distribution and production expertise.'
Founded in 2017 by Anand Virmani, Nao Spirits has emerged as a leader in the craft gin space. Its products, Greater Than and Hapusa, are award-winning, and the company recently launched a premium spiced rum brand, Pipa. The firm reported gross turnover of Rs 77.7 crore and net sales of Rs 34.8 crore in FY24, with 98% of revenue from India.
Post-acquisition, Diageo India has also approved up to Rs 20 crore in additional investment into Nao Spirits to support working capital and future growth. Nao's brands will now be scaled alongside Diageo's global gin portfolio, which includes Tanqueray and Gordon's.
Anand Virmani will continue to lead the business under Diageo's ownership.
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