Spirits major Diageo?s time in India last year could only be described as disaster, with allegations of tax evasion, an exodus of employees, and a home-grown label breathing down its neck to claim the global number one spot. The maker of iconic brands such as Johnnie Walker Whiskey and cult brews like Guiness Beer, however, says that it is unfazed and has been busy re-organising its business and attracting talent. Rolland Abella, managing director, Diageo India, in an interview with FE’s Shreya Roy , talks about how the company views its competition, and about how it plans to leverage the Indian opportunity.

There has been a lot of noise recently about United Spirits over taking Diageo to become global leaders in spirits by volume. How does Diageo view this development?

Diageo is the world’s leading premium drinks company with 8 of its spirit brands among the top 20 premium spirits brands in the world by volume, and 4 in the top 20 spirits brands by value; more than any other drinks company. As a global leader, at Diageo we measure success in terms of value and the experience we bring to our consumers ? not in terms of volume. As a premium drinks company with brands like Johnnie Walker and Smirnoff that have unrivalled quality and provenance, we welcome the increased interest and competition in the Indian spirits market. We believe that a healthy local spirits category feeds into the growth of the international spirit category, and our brands are well positioned to benefit from that growth.

Diageo India has been considerably silent over the past year after the company got entangled in legal issues as well as internal upsets with employee exits. How has the company restructured since then?

Over the last year, we have refocused our business in India and are now poised for growth. We have strengthened our portfolio of spirits and continue to invest behind our premium brands like Smirnoff, Johnnie Walker, VAT 69 and C?roc. We have further built capabilities and re-organised our network of distributors to support future growth. We have successfully attracted some of the best talent in the FMCG industry and are working hard to strengthen our relationships with our employees and external partners.

Your reserve brands took a hit during the recession. How is the premium liquor segment doing now?

Our consumer research shows that Indian consumers are increasingly looking for premium experiences and exclusivity. As India?s economy continues to grow and give more consumers the opportunity to live different experiences and travel to different countries, consumers will continue to trade up. With our vast portfolio of leading spirits brands across categories, Diageo is in a great position to avail of this opportunity. We have been working on experiential marketing programmes that aim to build a deeper connect with the brand, communicating the premium quality and rich heritage of the brand while increasing consumer loyalty. Innovation is an important growth driver. We now have a focused team in place that will be able to strengthen and expand our portfolio of leading premium spirits brands through innovation.

Do you plan to start bottling more products in India?

Currently, we operate four third-party bottling plants in accordance with Diageo?s global quality standards. We currently bottle our brands like Smirnoff, VAT 69, Haig, Black & White, Captain Morgan Original Spiced Rum and Shark Tooth at these plants. India is a key market for us, with great potential for growth. As we continue to strengthen and expand our position in the Vodka, Scotch, Single Malt, and Rum categories, we continuously evaluate all opportunities available to us to support our growth.

The company had spoken of plans to start brewing Guinness in India a couple of years back. What is the status of that?

At this point we are focusing on our spirits brands. We will of course continue to evaluate opportunities in all beverage alcohol categories and cater to the ever-evolving tastes of the Indian consumer.

You also had plans to launch Smirnoff Ice. Is that still on the anvil? When do you plan to bring it in?

Smirnoff is the vodka of choice for most consumers of the premium vodka category. We are exploring the opportunity to extend this to the ready-to-drink category and could do so depending on the results of research that supports this.

Are you on the lookout for mergers and acquisitions in India to strengthen your position?

India has tremendous growth potential, with 19 million consumers joining the sector every year. We see a lot of room for growth in the Indian premium spirits market. Over the past 10 years India?s premium consumer base has expanded rapidly, and we expect it will continue to expand. As such, we continuously evaluate all opportunities available to us.