Diageo charts roll-out plans with United Spirits

Brings on board Anand Kripalu as CEO-designate; Eyes sales of Rs 500 crore of Diageo brands through USL

Diageo, the global spirits major which recently got a strategic management control over India's largest spirits major - United Spirits, is moving aggresively with integration of front-end operations even as it is putting in place a strong management team to take the operations forward.

Gilbert Ghostine, Diageo’s Asia-Pacific President, said Diageo’s priority is to bring in a wide range of experts to the board at United Spirits Ltd, a part of the UB Group, to ensure the company continues to operate at the highest standards in India. Diageo is hoping to see sales worth Rs 500 crore per annum of its products through the United Spirits’ network starting October 2013.

Diageo has already nominated three board members to the board of USL, including its former Chief Executive Paul Steven Walsh.

“We have received shareholder’s endorsement for board appointments, and we are appointing Anand Kripalu as the CEO-designate of USL effective from October 2013,” Ghostine said.

Anand Kripalu, former chief executive of Cadbury India Ltd will be CEO-designate of USL starting October and eventually lead to smooth takeover of the helm of affairs at the firm after its current Chief Executive retires by end of April 2014.

“We will talk to USL to appoint him CEO designate effective from Oct 1, to take over from Ashok Capoor in starting May 2014,” Ghostine said.

“Kripalu has an exceptional career at Kraft and Cadbury and we look forward to him bringing his expertise to United Spirits.”

Capoor, who as part of his contributions for the growth of USL, will be taking up a position as President - Strategy for a period of one year.

Ghostine added there were other items they would take up with the board of USL whose integration with Diageo is a “dream combination.” However this dream combination is being reviewed by regulators in the United Kingdom as United Spirits may have to part with Whyte and Mackay to comply with fair trade rules that prevent deals between giants to avoid the formation of a likely monopoly.

Mallya said the issue is pending review in the UK and that no clarity has been received on the same.

USL, maker of brands like McDowells and Bagpiper, is focussing on a premiumisation drive that has resulted in double-digit growth, it expects will help alleviate some pressure from rising costs of raw materials. Diageo's Ghostine also said their priority was to grow their own line of premium brands in the country through USL’s distribution network.