Diageo-USL deal good for sector, say experts
“I think there is some consolidation that will happen over the next few years. The industry is going through a rough time in terms of profitability as it is not able to pass on input price hikes to consumers. All that would have to change in the next two to three years,” said Deepak Roy, executive vice-chairman and CEO of Allied Blenders and Distillers (ABD) which now becomes India’s largest domestic spirits company after Mallya's stake sale to Diageo on Friday. “It is not that we don't have the marketing experience. It’s just the mindset of owners was not geared towards investing in big brands,” said Roy, adding that it was not easy to invest when profit margins were under pressure. To be sure, global firms will now be calling the shots in India's liquor industry with Diageo-USL enjoying over 45% marketshare followed by its global rival Pernod Ricard with
Be the first to comment.