The world's largest spirits maker Diageo has reported 24.54 per cent growth in revenue from India to over Rs 25,482 crore in 2016-17 driven by IMFL, whiskey andscotch, despite facing multiple challenges in the country.
The company which makes and sells Indian whiskey, rum, brandy and other spirits through its subsidiary United Spirits (USL), had sales of 3,070 mn pounds (about Rs 25,482 crore) in last fiscal as against 2,465 mn pounds (about Rs 20,461 crore)in 2015-16, as per Diageo's annual report for 2016-17.
"The business in India grew net sales by 2 per cent, largely driven by IMFL (Indian-made foreign liquor), whiskey andscotch, despite the impact of demonetisation and the Supreme Court ruling banning sales in certain outlets near highways," it said.
The company said its highest selling liquor McDowell's No 1 whiskey saw 9 per cent growth in sales while Prestige and above segment witnessed a net sales growth of 7 per cent.
The company's Signature brand sales grew 31 per cent during the year, it added.
"Scotch grew net sales 6 per cent driven by Johnnie Walker and Black & White," Diageo said, adding that distribution and share of shelf have grown, driving net sales growth and share on key scotch brands.
The company is eyeing higher sales from India in the years to come as it is expecting the legal purchase age to increase significantly.
"We will see significant growth in the population of legal purchase age consumers, half of whom will come from India and Africa," Diageo Plc Chairman Javier Ferran said.
Diageo said it is expecting 500 million new legal purchase age consumers to come to the market over the next decade and India and Africa will account for half of this.
In India, the company manufactures, markets and sells Indian whiskey, rum, brandy and other spirits through a 54.78 per cent shareholding in USL. Diageo also sells its own brands through USL.
The brands acquired by Diageo through USL include McDowell's No 1 whiskey, rum and brandy, Black Dog, Signature, Antiquity and Bagpiper whiskey and other Indian whiskey, brandy and rum products.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)