As it concentrates on its primary alcohol business, Diageo’s India division will start a strategic review of its stake in a company that owns the IPL team Royal Challengers Bengaluru, the drinks manufacturer announced on Wednesday.
Brands like “Royal Challenge” whisky and “Smirnoff” vodka are sold by United Spirits Ltd. It has profited from wealthy Indians indulging in high-end goods including expensive jewelry, watches, and liquor.
RCB participates in the Indian Board of Control for Cricket’s yearly T20 leagues, the IPL and Women’s Premier League. The women’s team won the title in 2024, and the men’s squad earned their first IPL championship earlier this year.
Royal Challengers Sports Pvt Ltd “has been a valuable and strategic asset” but is “non-core” to United Spirits’ alcobev business, CEO Praveen Someshwar said in an exchange filing. He stated that the company will keep reviewing its portfolio in India.
Details of the company’s involvement in Royal Challengers Sports were not made public. Earlier this year, Diageo reportedly sought a valuation of roughly $2 billion for the team.
For the year that concluded on March 31, 2025, 8.3% of United Spirits’ total core earnings came from the sports division. According to United Spirits, the evaluation procedure will be finished by March 31 of the following year.
