United Spirits Ltd. (USL), India’s largest liquor maker and a subsidiary of UK-based Diageo plc, has initiated a strategic review of its investment in Royal Challengers Sports Pvt. Ltd. (RCSPL). This company owns the Royal Challengers Bengaluru (RCB) cricket teams in the men’s and women’s Indian Premier League tournaments.
In a stock exchange filing on 5 November, Diageo said the process “may result in a full or partial sale, or other strategic restructuring” of the business. The review is expected to conclude by March 31, 2026, the company added.
CEO Praveen Someshwar says
USL’s managing director and CEO, Praveen Someshwar, said the move aligns with the firm’s plan to sharpen its focus on its core alcoholic beverages business. “RCSPL has been a valuable and strategic asset for USL. However, it’s non-core to our alcobev business,” he said. “This step reinforces USL’s and Diageo’s commitment to reviewing its India enterprise portfolio to enable sustained delivery of long-term value.”
The Bengaluru-based liquor maker, which commands the largest market share in India’s spirits segment, has been under shareholder pressure to divest non-core assets and streamline operations. The company has reportedly appointed a merchant bank to manage the sale process.
Most valuable franchise
RCB, one of the IPL’s founding franchises, is among the league’s most valuable teams. According to Houlihan Lokey’s 2024 IPL valuation report, RCB is currently the most valuable franchise, pegged at $269 million following its maiden IPL title win earlier this year.
Potential suitors for the team include Adani Group, JSW Group, Serum Institute’s Adar Poonawalla, Devyani International’s Ravi Jaipuria, and a US-based investment firm, according to people familiar with the matter.
The sale speculation intensified after a stampede outside Bengaluru’s M. Chinnaswamy Stadium on June 4 left 11 people dead, drawing scrutiny over the franchise’s management and public safety measures.
