ON THE BUSY Vittal Mallya Road in central Bengaluru stands the UB Tower. The 20-storey tower, part of a commercial complex, is home to many high-profile names, including Diageo India, a subsidiary of the UK's Diageo plc, which acquired United Spirits, India's largest liquor company by revenue.
When United Spirits got under the Diageo umbrella, it was not just a new name for an old business. Diageo is a more aggressive organisation with a distinct multinational culture.
The alcoholic beverages major, headquartered in London, has over 200 brands and a presence in 180 countries. For the financial year ended June 30, 2024, Diageo reported revenues of $27 billion, of which 40% came from North America and 24% from Europe. Asia-Pacific contributed 19%, with India's share in the modest single digits.
Diageo has been trying to change this ever since it took over United Spirits a decade ago: it knows that very few markets offer the headroom for growth that India does. But the changes have come in fits and starts.
Hina Nagarajan, named Diageo India's boss in 2021 after a similar role at its African business, is hastening the pace. Nagarajan, who prefers a low profile despite being the MD & CEO of a liquor giant, talks in terms of months, not years.
PUTTING IT TOGETHER
Sitting in her austere office, the MD & CEO pauses briefly to adjust her green blazer before recalling one of the early strategy meetings right after she took over in July 2021. Nagarajan's table is clean, and her room is sparse (We are drinking tea, and there is no display of Diageo's 63 alcohol brands in the room). Most importantly, she is relaxed, which is admirable given the complex regulations, tax rates and even bottle sizes across states. Some states depend heavily on taxes from liquor revenues.
This story is from the September 29, 2024 edition of Business Today India.
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This story is from the September 29, 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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