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Mint
9 hours ago
- Business
- Mint
United Spirits to buy out Greater Than gin maker Nao Spirits in a ₹110 cr deal
United Spirits Ltd (USL), the Indian arm of global liquor major Diageo Plc, is acquiring homegrown craft spirits maker Nao Spirits & Beverages Pvt. Ltd in a deal valued at about ₹ 110 crore, it said in a stock exchange filing late Thursday evening. The USL board approved the acquisition of an additional stake in Nao Spirits, which owns gin brands like Greater Than and Hapusa, on Wednesday. The company, which already holds 30% in the business, will buy 37,683 equity shares from existing shareholders in two tranches for around ₹ 53.8 crore. It will simultaneously invest approximately ₹ 56 crore via a fresh subscription of 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS), it said in the filing. Following the completion of the first tranche and the new issuance, USL will own around 97.07% of Nao Spirits' paid-up capital on a fully diluted basis. The second tranche of the share purchase, to be completed later, will raise its ownership to 100%, making the craft spirits maker a wholly owned subsidiary of the Diageo arm. The USL board has also authorized a further investment of up to ₹ 20 crore in the alco-bev startup through equity or CCPS to support its working capital and business requirements. USL first acquired a stake in the company in March 2022 and has since completed a gradual buyout. Nao Spirits entered the premium gin market in 2016. 'Ventures, our investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. The acquisition represents a pivotal step in exploring future growth opportunities in Indian craft spirits…,' said Praveen Someshwar, managing director and chief executive, Diageo India (USL). In September 2024, Mint reported that Diageo, the world's largest spirits company, planned to pour $100 million ( ₹ 840 crore then) into the country over the next three years to grow its premium portfolio and develop new products tailored to local tastes. Its chief executive Debra Crew, speaking to Mint, said India was now emerging as a key innovation hub for the company, where products like the homegrown single malt Godawan are first tested and refined before being launched in global markets. Crew added that Diageo was also open to investing in Indian craft spirit brands, citing the country's growing pool of young, affluent consumers. In addition to its investment in Nao Spirits, Diageo has set up a ₹ 45 crore innovation centre in Goa to support research and development of premium beverages. Data from international drinks consultancy IWSR showed that gin had a rapid ascent in the country before levelling off in 2024. The category grew a modest 1% in volume, signalling that the enthusiasm around homegrown craft gins may be cooling. According to industry estimates, at its peak two years ago, the craft gin segment sold roughly 350,000 cases annually. Insiders told Mint that those numbers have now plateaued, an indication that consumer interest may be shifting toward other white spirits. For the year ending 31 March 2025, Diageo India posted gross revenues of ₹ 26,780 crore, marking a 5.4% year-on-year increase. In the March quarter alone, net sales rose 10.5% to ₹ 2,946 crore, driven by a strong portfolio performance and the reopening of trade in Andhra Pradesh.
Time of India
10 hours ago
- Business
- Time of India
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Scam Exposed: What They Won't Tell You about zero trust! Expertinspector Click Here Undo '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. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
11 hours ago
- Business
- Mint
United Spirits to buy out Greater Than gin maker Nao Spirits in a ₹110 cr deal
United Spirits Ltd (USL), the Indian arm of global liquor major Diageo Plc, is acquiring homegrown craft spirits maker Nao Spirits & Beverages Pvt. Ltd in a deal valued at about ₹ 110 crore, it said in a stock exchange filing late Thursday evening. The USL board approved the acquisition of an additional stake in Nao Spirits, which owns gin brands like Greater Than and Hapusa, on Wednesday. The company, which already holds 30% in the business, will buy 37,683 equity shares from existing shareholders in two tranches for around ₹ 53.8 crore. It will simultaneously invest approximately ₹ 56 crore via a fresh subscription of 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS), it said in the filing. Following the completion of the first tranche and the new issuance, USL will own around 97.07% of Nao Spirits' paid-up capital on a fully diluted basis. The second tranche of the share purchase, to be completed later, will raise its ownership to 100%, making the craft spirits maker a wholly owned subsidiary of the Diageo arm. The USL board has also authorized a further investment of up to ₹ 20 crore in the alco-bev startup through equity or CCPS to support its working capital and business requirements. USL first acquired a stake in the company in March 2022 and has since completed a gradual buyout. Nao Spirits entered the premium gin market in 2016. 'Ventures, our investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. The acquisition represents a pivotal step in exploring future growth opportunities in Indian craft spirits…,' said Praveen Someshwar, managing director and chief executive, Diageo India (USL). In September 2024, Mint reported that Diageo, the world's largest spirits company, planned to pour $100 million ( ₹ 840 crore then) into the country over the next three years to grow its premium portfolio and develop new products tailored to local tastes. Its chief executive Debra Crew, speaking to Mint, said India was now emerging as a key innovation hub for the company, where products like the homegrown single malt Godawan are first tested and refined before being launched in global markets. Crew added that Diageo was also open to investing in Indian craft spirit brands, citing the country's growing pool of young, affluent consumers. In addition to its investment in Nao Spirits, Diageo has set up a ₹ 45 crore innovation centre in Goa to support research and development of premium beverages. Data from international drinks consultancy IWSR showed that gin had a rapid ascent in the country before levelling off in 2024. The category grew a modest 1% in volume, signalling that the enthusiasm around homegrown craft gins may be cooling. According to industry estimates, at its peak two years ago, the craft gin segment sold roughly 350,000 cases annually. Insiders told Mint that those numbers have now plateaued, an indication that consumer interest may be shifting toward other white spirits. For the year ending 31 March 2025, Diageo India posted gross revenues of ₹ 26,780 crore, marking a 5.4% year-on-year increase. In the March quarter alone, net sales rose 10.5% to ₹ 2,946 crore, driven by a strong portfolio performance and the reopening of trade in Andhra Pradesh. Quarterly profit after tax stood at ₹ 451 crore, up 17.4%, while gross profit climbed 13.4%, pushing the gross margin to 44.5%.
Time of India
11 hours ago
- Business
- Time of India
USL to acquire majority stake in Nao Spirits
Diageo India ( United Spirits Limited ), on Thursday said it is acquiring a majority controlling stake in Nao Spirits at an enterprise value of Rs130 crore. Three years ago, Diageo bought a 22.5% stake in Nao, which makes Hapusa and Greater Than gin and later added another 7.5% stake a year later 'Ventures, Diageo India's investment arm is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. This allows us to offer consumers a wider array of products that resonate with evolving preferences. The acquisition of Nao Spirits, a promising portfolio company within our Ventures arm, represents a pivotal step in exploring future growth opportunities in Indian craft spirits ," said Praveen Someshwar, MD and CEO, Diageo India (USL), which has global gin brands such as Tanqueray in its portfolio. Launched in 2017 by Anand Virmani, the company controls 4.6% market share in the Indian gin category. Last year, the company also launched an aged, spiced rum, Pipa. Over the past few years, several small handmade batches of local brands, especially from Goa, stirred up the segment. However, mainstream companies too entered the space either by acquiring startups or launching their own gin brand. Apart from USL acquiring Nao, Tilaknagar Industries Limited bought stake in Spaceman Spirits Lab, the owner of Samsara while Allied Blenders and Distillers acquired all brands and other Intellectual Property rights from Fullarton Distilleries Private, the maker of Pumori gin and Woodburns whiskey. Amrut's Nilgiris gin and Malhar from John Distilleries are more recent toe dips into craft gin by major local distillers. "The investment will help us scale further with the support of Diageo India's seasoned leadership, distribution network and production capabilities combined with our unconventional mindset and ability to stay deeply relatable to the evolving consumer," said Anand Virmani, Co-Founder & CEO, Nao Spirits & Beverages
