Diageo, the world’s largest spirits company, plans to invest $100 million (₹840 crore) in India over the next three years. This investment will focus on creating new products and expanding its premium spirits range, said CEO Debra Crew.
Crew, who took over the company last year, highlighted India as a key market for Diageo, which owns brands like Johnnie Walker, McDowell’s, and Smirnoff. Diageo’s growth in India has nearly doubled in recent years, with sales rising from 5% to 11%.
India, Diageo’s biggest market by volume, will soon be its largest whisky market by value, Crew predicts. Diageo has already invested $3.5 billion in India since buying United Spirits in 2014.
Despite a slight revenue dip in FY24 due to inflation, Diageo India saw profits rise by 24.7% thanks to lower taxes. The company operates 36 manufacturing facilities in the country and contributed $2.5 billion in taxes last year.
The company is betting big on innovation in India, already exporting its Indian-made single malt whisky, Godawan, to the UK. Diageo is also exploring investments in local craft spirit brands, following its 2022 stake in Nao Spirits, which makes popular craft gins.
With India’s alcohol market expected to grow by $7 billion by 2028, Diageo’s new investment aligns with the country’s growing demand for premium spirits. However, rising costs from inflation and changing consumer habits, especially among younger, moderate drinkers, are challenges the company is watching closely.
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