Gin-vestment Goals: United Spirits Raises the Bar with NAO Spirits Deal

United Spirits Ltd (USL), a Diageo-controlled leading beverage major, has invested ₹560 million in NAO Spirits & Beverages Pvt Ltd as part of a major push to corner India's premium craft spirits business. The investment includes a new subscription of 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS), raising USL's stake in NAO to 97.07%, making it a de facto subsidiary.

 

Following a similar action, USL's board also approved another investment of up to ₹200 million in NAO Spirits. This will be deployed in one or more tranches to address working capital needs and business expansion, solidifying USL's commitment to expanding NAO's business and brand footprint.

 

NAO Spirits, a craft gin maker of brands Greater Than and Hapusa, has built considerable momentum in Indian domestic market as well as international markets. This buyout and subsequent investments are set to propel NAO's growth trajectory with the support of USL's distribution capabilities as well as operational experience.

 

All these developments are also a part of Diageo India's overall strategy to invest in disruption alco-bev startups under its Ventures division, as per shifting consumer trends in premium spirits.

 

Sources: Moneycontrol, CNBC TV18, Diageo India, Investing.com