Diageo increases stake in Indian subsidiary

McDowell's No.1 is the flagship umbrella spirits brand of United Spirits Limited, a subsidiary of Diageo. Photo: diageoindia.com

Diageo has increased stake in its Indian subsidiary United Spirits Limited, acquiring 0.46 percent of the shareholding for nearly £22 million (Rs.1.95 billion).

The British giant’s controlling stake at United Spirits now stands at 55.2 percent.

“USL is a highly strategic asset for Diageo and positions the company well to capitalise on opportunities within India, one of the most exciting growth markets in the world for total beverage alcohol,” said the firm in a statement.

United Spirits has posted an increase of 8 percent in organic net sales in the recently announced annual results of Diageo. India’s leading spirit company has performed particularly well in the ‘Prestige and Above’ segment, which was up 12 percent, led by double digit growth in Scotch.