United Spirits Ltd (USL), controlled by Diageo, announced on Saturday that it would acquire a 22.5% minority stake in Nao Spirits for Rs 31.5 crore.
Diageo India will also have a call option to acquire the remaining shares on “pre-agreed principles” from Nao Spirits & Beverages Private Ltd, according to a joint statement.
Launched in 2016 by Anand Virmani, Nao Spirits is an emerging craft gin company in India, with the brands “Greater Than” and “Hapusa”.
Read also : United Spirits Q3 results: net profit up 27% to Rs 291 crore
“Nao Spirits offers Diageo India the opportunity to strengthen its stake in the fast growing premium gin segment in India,” he said.
Diageo India MD and CEO Hina Nagarajan said, “As a company built on founder-led brands, we are thrilled to take our first step in India to support bold and innovative entrepreneurs. Over the past three years, the Indian market has witnessed the emergence of several craft gin players and Nao Spirits has been a game changer in the category. »
While Nao Spirits & Beverages Co-Founder & CEO Virmani said, “As we seek to chart the next phase of growth for Nao Spirits, Diageo India’s investment will help us grow our business, improve the efficiency and access to mentorship from an industry leader, which will be extremely valuable.
Read also : United Spirits Extends Timeline for “Strategic Review” of Selected Brands to March 31, 2022
The investment will be funded from Diageo India’s internal cash resources, he added.
Diageo India is the subsidiary of global liquor company Diageo PLC, which owns premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No1, Smirnoff and Captain Morgan.