With Diageo?s acquisition of a 25.02% stake in United Spirits (USL), India?s largest liquor company is going through a process of change. While Vijay Mallya continues as chairman, the company has revamped its board bringing in new independent directors. It plans to appoint former Cadbury India head Anand Kripalu as its CEO-designate and is also gearing up for the integration with Diageo?s product portfolio starting October. Gilbert Ghostine, president, Asia Pacific, Diageo, and a USL board member, tells Ajay Sukumaran that the focus will be on accelerating sales of USL?s brands in the premium segments. Edited excerpts:

Will you retain all of USL?s 140 brands and will Diageo India also be adding more local brands?

One of the USL?s strengths is the portfolio they have, with brands like McDowells, Royal Challenge and Bagpiper, which are well rooted in the Indian market. There are over 20 millionaire brands in the USL portfolio and we will put even more energy behind these brands to accelerate their trajectory. Obviously the big focus will be on the prestige segments and above portfolio.

This is where we want to accelerate further than where we are. But all the brands under the USL and Diageo portfolio are valuable brands and they will get the right dedication and support they deserve.

What are the plans for integration between USL and Diageo?

This is tabled for discussions with the board. Diageo is looking at appointing USL as its sales agent for India as of October 1. We will discuss with the other board directors this afternoon and we are looking forward to the presentation that the CEO and CFO of USL will share with us on where they see the upside and opportunity for both portfolios.

Are the plans for consolidating the financial results of USL with Diageo?s earnings on track?

Our plan is to consolidate USL?s earnings within the Diageo results as of January 1, 2014. That?s the intention we have. There are lots of processes that need to be done for us to be ready for that. From everything I hear from our teams, and the USL teams, we are still committed to this deadline.

When will Anand Kripalu join as CEO of the company?

The proposal to the board is Kripalu will be appointed CEO designate of USL as of October 1 and the plan is for Kripalu to take over from Ashok Capoor early May 2014 when his mandate as CEO of USL will expire. We are excited about having been able to attract someone with Kripalu?s credentials to USL. He spent most of his career in India working for great companies like Unilever, Kraft and Cadbury and his track record has been exceptional.

Will you be looking to increase your stake in USL?

We are very pleased with our shareholding today in USL, the 25% plus that we have give us management and board control that we need in order to be able to be involved and steer the company in the direction that will be creating value for USL shareholders. It doesn?t matter if we have 25% or 30%. We are satisfied with our current shareholding.