Latest news with #PraveenSomeshwar
Yahoo
6 hours ago
- Business
- Yahoo
United Spirits to buy control of India's Nao Spirits
Diageo-controlled United Spirits is acquiring a 'majority controlling stake' in Indian distiller Nao Spirits. The deal, valued at around Rs1.3bn ($15.2m), will see United Spirits initially own 97.07% of New Delhi-based Nao Spirits. United Spirits initially acquired a 22.5% stake in the maker of Hapusa and Greater Than gin three years ago. The following year, United Spirits, in which Diageo owns a majority stake, bought a further 7.5%. In a stock exchange filing yesterday (19 June), United Spirits said it will purchase 37,683 shares from investors in Nao Spirits in two tranches for around Rs538m. The company will also invest approximately Rs560m through a fresh subscription of 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS). Upon the completion of the first tranche and the new share issuance, United Spirits will hold the 97.07% stake. A second tranche, to be finalised later, will increase United Spirits' ownership to 100%. The United Spirits board has also approved an additional investment of up to Rs200m in Nao Spirits through equity or CCPS to support its working capital and business needs. Praveen Someshwar, the MD and CEO of United Spirits, who took on the role in January and is a former PepsiCo executive, called the Nao Spirits deal a 'pivotal step in exploring future growth opportunities in Indian craft spirits'. Nao Spirits was launched in 2016 by Anand Virmani and is one of India's emerging 'craft' gin companies. Its Greater Than and Hapusa gin brands are made with Indian spices and botanicals. Virmani said the investment will help Nao Spirits 'scale further with the support of Diageo India's seasoned leadership, distribution network and production capabilities'. Bengaluru-based United Spirits has 35 manufacturing facilities across the country. It produces, markets and distributes brands including Johnnie Walker, Black Dog, Royal Challenge, McDowell's No1, and Smirnoff. In April, United Spirits took a 15% stake in Inspired Hospitality, an Indian producer that owns agave-spirit brand Pistola, for Rs56m. "United Spirits to buy control of India's Nao Spirits" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
14 hours ago
- Business
- Entrepreneur
Diageo India Acquires Majority Stake in Craft Spirits Maker NAO Spirits at INR 130 Cr Valuation
This strategic move will see NAO Spirits become a subsidiary of Diageo India, further solidifying the company's commitment to India's growing premium craft spirits segment. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Diageo India (United Spirits Limited) has announced the acquisition of a controlling stake in NAO Spirits and Beverages at an enterprise value of INR 130 crore (approx. USD 15.2 million USD). This strategic move will see NAO Spirits become a subsidiary of Diageo India, further solidifying the company's commitment to India's growing premium craft spirits segment. NAO Spirits, founded in 2017 by Anand Virmani, is the force behind acclaimed brands such as 'Greater Than', India's first London Dry Gin, and 'Hapusa', a Himalayan craft gin made with foraged juniper. The company expanded into the rum category in 2024 with the launch of 'PIPA', an aged, spiced Indian craft rum made from jaggery spirit. Praveen Someshwar, MD and CEO of Diageo India, said, "Ventures, Diageo India's investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. The acquisition of NAO Spirits represents a pivotal step in exploring future growth opportunities in Indian craft spirits. We believe it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production." NAO Spirits' founder, Anand Virmani, stated, "We are excited to be a part of the Diageo India family. This acquisition is a powerful validation of what we've always believed—that India can create great craft spirits. With Diageo's support, we can scale further while staying true to our identity and community. Our DNA remains unchanged, and we'll continue to be the pathbreakers." Diageo India, a leading alcobev player, has a wide portfolio including iconic global and Indian brands such as Johnnie Walker, McDowell's No.1, and Godawan single malt. With this acquisition, the company aims to further strengthen its premium offerings and cater to the evolving preferences of modern Indian consumers.
Mint
a day 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.
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Business Standard
a day ago
- Business
- Business Standard
Diageo India to acquire majority stake in NAO Spirits for ₹130 cr
Diageo India (United Spirits) on Thursday announced that it is acquiring a controlling stake in NAO Spirits at an enterprise value of ₹130 crore ($15.2 million), resulting in NAO Spirits becoming a subsidiary of the company, it said in a release. United Spirits will first purchase 37,683 equity shares of NAO from its existing shareholders, in two tranches, for an aggregate consideration of approximately ₹53.80 crore, according to a stock exchange filing. It will then subscribe afresh to 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS) of NAO for a total consideration of approximately ₹56 crore. 'Upon successful completion of both the acquisition of shares in the first tranche under the SPA (share purchase agreement) and the fresh subscription (which will occur simultaneously), the company will hold shares constituting approximately 97.07 per cent of the paid-up share capital of NAO, resulting in NAO becoming a subsidiary of the company,' United Spirits said in its exchange filing. The company also said that the board of directors, in its meeting on Thursday, has authorised a further investment of up to ₹20 crore in NAO by way of subscription to CCPS and equity shares, in one or more tranches, to fund the working capital and other requirements of NAO from time to time. Praveen Someshwar, managing director and chief executive officer, Diageo India (United Spirits), said in the release: 'Ventures, Diageo India's investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev start-ups. 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.' Someshwar added that the company believes it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production. He further said that over the past few years, India has seen the emergence of multiple craft gin players, and NAO Spirits has become a leader in the category. 'As consumers shift towards experimentation, repertoire, and casual drinking occasions, demand for local yet authentic, craft-oriented brands is on the rise. NAO Spirits' brands are well placed to cater to these evolving trends. Diageo India already has leading international gin brands such as Tanqueray in its portfolio,' he said.
Time of India
a day 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
