RCB an ‘exciting extension’, but not core to Diageo’s business: Praveen Someshwar

Diageo-controlled United Spirits Limited (USL) is banking on premiumisation to deliver double-digit growth over the next five years, even as its association with the Indian Premier League (IPL) franchise Royal Challengers Bangalore (RCB) remains an exciting but non-core part of its portfolio.

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Praveen Someshwar, Managing Director and Chief Executive Officer of Diageo India, in a recent interview with CNBCTV-18, underlined that while RCB has scale and brand value, it does not form part of the company’s core alcobev business.

“It’s an exciting asset. Cricket is the lifeline of the country and within cricket, IPL has a play, so it’s clearly exciting. But that has nothing to do with our core business.

Diageo is about alcobev, and RCB was an extension at a point of time that has now got scale. That’s exciting, but it’s not the core part of our portfolio,” Someshwar said.

Asked about unlocking the value of the franchise, Someshwar maintained that while RCB is not core, it remains important. “I wouldn’t get to saying unlocking, it’s certainly not core. Alcobev is our core, and that’s where we focus our business. This (RCB) is an exciting extension, integral to our brand and an important part of our overall,” he added.

Betting on Premiumisation

USL, which is already generating revenues of around $1.5 billion, is targeting consistent double-digit compound annual growth over the next five years. “At a double-digit CAGR in five years, that’s an exciting proposition.

I love the flamboyance, but I would sign up for consistency in terms of growth. Rahul Dravid is clearly an inspiration,” Someshwar noted.

Premiumisation remains at the heart of the company’s growth strategy.

The company aims to deepen consumer engagement across occasions, push upgrades to higher-end brands, and create lasting value. “I would love to see volumes consistently grow, but more importantly, how do I keep premiumising and look at value. So, I would look at value growth constantly. That’s been my yardstick in whichever business I have been,” Someshwar said.

Brand resilience amid regulatory challenges

Someshwar also highlighted India’s demographic advantage and rising middle class as growth drivers for the alcobev sector. Despite steep regulatory changes, such as the Maharashtra government raising duties from 300% to 450%—leading to a 30-35% price hike- consumer spending has remained strong, growing in mid-to-high teens.

Read more: From PepsiCo to Premium Spirits: Diageo CEO Praveen Someshwar on talent, growth and India’s future as a consumer market

“This reflects brand strength. While volume growth hasn’t materialised yet, we expect improvement in the next six months,” Someshwar said, underscoring confidence in Diageo’s ability to sustain demand despite pricing challenges.

With a sharp focus on innovation, research and development, and talent, USL is positioning itself as a premium-led, value-driven player in one of the world’s most attractive consumer markets.

India- world’s next great consumer market

The executive believes that India is on the cusp of becoming the world’s most important consumer market — a shift he says will play out over the next decade. “India will be the consumer market of the next decade, as I see it,” Someshwar said.

Read more: Diageo chief Praveen Someshwar bets on India as the world’s next great consumer market

“It has got its ducks in a row, in spite of everything going on around the world. Look at the demographics of the country. Look at how the middle class is growing, look at GDP growth, and that’s a great place to be running a business.”