United Spirits, the Indian subsidiary of English alcoholic beverage major Diageo, has acquired a majority stake in NAO Spirits. While United Spirits already has a 30 percent stake in NAO Spirits, it is buying the additional 70 percent stake in the company for about Rs 110 crore.
The purchase deal, which will be carried out in two tranches, sets the Enterprise Value of NAO Spirits at Rs 130 crore. Upon the completion of the second tranche of shares on June 30, NAO Spirits will become a subsidiary of United Spirits.
United Spirits, maker of achobev brands such as McDowell’s No.1, Royal Challenge, Johnnie Walker, said in a filing exchange that the company is acquiring NAO Spirits to have a better presence in the Indian premium craft gin segment.
Praveen Someshwar, MD and CEO, Diageo India (United Spirits) said, “The acquisition of NAO Spirits, a promising portfolio company within our Ventures arm, represents a pivotal step in exploring future growth opportunities in Indian craft spirits.” He added that the company believes that it is the right time to scale up NAO Spirits using Diageo’s expertise, unlocking new avenues for distribution and production.
NAO Spirits portfolio
Started in 2017, NAO Spirits has created a niche for itself in the Indian gin market by introducing Indian botanical-infused gin. The company had launched brands such as Greater Than and Hapus. Last year, it launched a rum label named PIPA, which is made from jaggery spirit.
According to the exchange filing documents, in FY24, NAO Spirits’ turnover was Rs 77.73 crore (gross of excise duty). The company’s net sales in FY24 were Rs 34.83 crore. In the previous fiscal year, the company posted turnover and net sales of Rs 33 crore and Rs 27 crore, respectively.