By Hritam Mukherjee
(Reuters) -Diageo’s India arm will begin a strategic review of its investment in a unit which owns the Indian Premier League cricket team ‘Royal Challengers Bengaluru’, the spirits maker said on Wednesday as it focuses on its core alcohol business.
United Spirits Ltd sells brands such as “Royal Challenge” whisky and “Smirnoff” vodka. It has benefited from affluent Indians splurging on premium products including high-priced liquor to watches and jewellery.
RCB competes in the men’s Indian Premier League and Women’s Premier League, annual cricket tournaments hosted by the Board of Control for Cricket in India. Earlier this year, the men’s team won its first IPL title in the history of the tournament, while the women’s team won its title in 2024.
Royal Challengers Sports Pvt Ltd “has been a valuable and strategic asset” but is “non-core” to United Spirits’ alcobev business, CEO Praveen Someshwar said in an exchange filing. The firm will continue to review its India portfolio, he added.
The company did not disclose details of its investment in Royal Challengers Sports. Diageo was seeking a valuation of about $2 billion for the team earlier this year, according to media reports.
The sports business accounted for 8.3% of United Spirits’ total core profit for the year ended March 31, 2025.
United Spirits said the review process will be completed by March 31 next year.
($1 = 87.8950 Indian rupees)
(Reporting by Hritam Mukherjee and Abinaya Vijayaraghavan in Bengaluru; Editing by Leroy Leo)
