Diageo India to acquire majority stake in NAO Spirits for ₹130 cr

United Spirits will acquire a controlling stake in NAO Spirits, including popular gin brands Greater Than and Hapusa, marking a strategic expansion into Indian craft spirits

Diageo India (United Spirits) on Thursday announced that it is acquiring a controlling stake in NAO Spirits at an enterprise value of ₹130 crore ($15.2 million), resulting in NAO Spirits becoming a subsidiary of the company, it said in a release.

 

United Spirits will first purchase 37,683 equity shares of NAO from its existing shareholders, in two tranches, for an aggregate consideration of approximately ₹53.80 crore, according to a stock exchange filing. It will then subscribe afresh to 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS) of NAO for a total consideration of approximately ₹56 crore.

 

“Upon successful completion of both the acquisition of shares in the first tranche under the SPA (share purchase agreement) and the fresh subscription (which will occur simultaneously), the company will hold shares constituting approximately 97.07 per cent of the paid-up share capital of NAO, resulting in NAO becoming a subsidiary of the company,” United Spirits said in its exchange filing. 

 

 

The company also said that the board of directors, in its meeting on Thursday, has authorised a further investment of up to ₹20 crore in NAO by way of subscription to CCPS and equity shares, in one or more tranches, to fund the working capital and other requirements of NAO from time to time.

 

NAO Spirits, launched in 2017 by Anand Virmani, is an emerging Indian craft spirits company known for its gin brands Greater Than and Hapusa. 

 

Praveen Someshwar, managing director and chief executive officer, Diageo India (United Spirits), said in the release: “Ventures, Diageo India’s investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev start-ups. This allows us to offer consumers a wider array of products that resonate with evolving preferences. 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.”

 

Someshwar added that the company believes it is the right time to scale up NAO Spirits using Diageo's expertise, unlocking new avenues for distribution and production.

 

He further said that over the past few years, India has seen the emergence of multiple craft gin players, and NAO Spirits has become a leader in the category. “As consumers shift towards experimentation, repertoire, and casual drinking occasions, demand for local yet authentic, craft-oriented brands is on the rise. NAO Spirits’ brands are well placed to cater to these evolving trends. Diageo India already has leading international gin brands such as Tanqueray in its portfolio,” he said.

 

“The investment will help us scale further with the support of Diageo India’s seasoned leadership, distribution network, and production capabilities, combined with our unconventional mindset and ability to stay deeply relatable to the evolving consumer. Our DNA remains unchanged, and we’ll continue to be the path-breakers. To every beverage innovator out there: it is possible—and let’s keep building a stronger community for craft,” Anand Virmani, co-founder and chief executive officer, NAO Spirits & Beverages, said in the release.