Diageo, Retail News, ET Retail

Global spirits leader Diageo is embarking on mission to be one of the best performing consumer products companies in India with sustained and profitable double-digit revenue growth and will reorganize its portfolio as part exercise, according to a senior company official.

Having completed a ‘holistic transformation journey’ since the completion of the acquisition of United Spirits Ltd (USL) in 2013, marked by moderate revenue growth, Diageo India is now looking forward to the new phase, while creating an organization of the future, and defining and executing an ambitious role for the company in society.

“Our mission is to be a top performing consumer products company in India, delivering sustained, profitable double-digit revenue growth and long-term value for all of our stakeholders,” said Hina Nagarajan , Managing Director and CEO of Diageo India, in an interview with PTI.

Elaborating on how the company aims to achieve its goal, she said, “We will achieve our mission through three pillars that form the essence of our strategy: a redesign of our portfolio while providing our advice for ‘teens. medium to high ”. margin, creating an organization of the future and defining and executing an ambitious role for Diageo in the company. “

As part of the portfolio overhaul, she said the company will accelerate growth in the luxury and premium segment and activate Diageo’s global luxury portfolio.

Further, Nagarajan added, “We will strengthen the game in the upper prestige (segment) with highly differentiated offerings that cater to new cohorts of consumers. Royal Challenge Whiskey to stimulate growth. “

Regarding the strategic review of her “People’s Portfolio” which was announced earlier this year, she said, “We have said that we will complete this exercise by December of this year, so we are on the right track. way to do it.

At the moment, the company is exploring various options, including “extending the franchise model, selective acceleration of brands, maybe even divestment and even changing the operating model,” he said. she said, adding that it would be finalized by December.

As for achieving the second goal of creating a future-ready organization, Nagarajan said that Diageo India will build on digital acceleration, talent and culture as growth engines, and promote speed and simplicity within the organization.

Regarding Diageo India’s role in society, she said: “Our stakeholders are increasingly challenging companies to show how they are having a positive impact on all aspects of society. “

Stating that since the acquisition of USL, Diageo has a proven track record in sustainability, she said: “We want to challenge ourselves to go much further now and be more ambitious. We are going to take ESG from the grain to the glass, moving India towards drinking better, not more, and leading inclusion and diversity. “

When asked if the USL integration is now complete and the legacy issues have been fully resolved, Nagarajan said, “I think the integration is definitely complete. legacy are over, some are continuing but I think there are enough now to allow us to focus on our goal of sustained double-digit growth, so we are in a new phase.

She added, “As we plan for this new phase of growth, we now have all the fundamentals in place to be able to shape this new mission. “

In the second quarter ended September 30, 2021, USL posted a consolidated net profit of Rs 286.4 crore compared to Rs 125.1 crore during the period of the previous year. Consolidated revenue from operations was Rs 8,208.8 crore versus Rs 7,509.4 crore in the same period last year.

In the first half of the fiscal year (S1) ended September 30, 2021, it posted a consolidated net profit of Rs 336.7 crore. The company suffered a net loss of Rs 121.5 crore over the period of last year. Consolidated turnover from operations also increased to Rs 14,377.3 crore in the first half, compared to Rs 11,330.1 crore in the same period a year ago.

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