The Hindu Business Line : Diageo lines up major expansion plans in India

Banffishire (Scotland) May 27 Diageo, the world's leading premium spirits company, is actively considering setting up another bottling plant in north India and is set to set up a similar plant in the South in a few months.

A Diageo official told Business Line that the company also plans to enter into a partnership with a vineyard in Nashik for manufacturing branded wine products in the country.

Besides, there are plans to launch the rest of six classic single malt brands. The company has already launched Lagavulin, Talisker and Caolila brands in India.

Its recently launched Captain Morgan dark rum brand, the fifth largest spirits brand in the world, has already received good response, the official said.

"It was a segment without any serious player. Our brand fills that need."

It is priced upwards of Rs 500 for a 750 ml bottle and is being promoted as an out-of-home product.

The company, which already has a bottling plant under contract with a local bottler near Aurangabad, wants to expand its footprint across the country as soon as possible, according to the official.

"The Indian market is on a good growth path. We want to take advantage of it as soon as possible."

Diageo has an equal joint venture with Radico Khaitan in India and manufactures some IMFL brands through that partnership.

One of the IMFL brands, Masterstroke, in the prestige segment (Rs 300 plus category), is being launched across the country in a phased manner.

The launch of two more IMFL brands is being considered.

The official said that the company's beer brand, Guinness (a stout beer), is also being launched in a phased manner.

In case it is able to get enough volumes, Diageo might look at setting up a manufacturing plant in India.

Guinness, the only beer brand of the company, is priced at Rs 300 plus.

The brand is currently being promoted at high-end restaurants and major hotels as part of the initial launch process.

It is currently available in Mumbai, Delhi and Bangalore. The brand was launched three months back in the country.

In the Scotch segment, Haig, a blended whisky that is being bottled at the Aurangabad plant, is being launched across the country.

It is priced at Rs 600 plus for a 750 ml bottle.

The official said that though the company is straddling across various segments, it has not lost focus.

"In fact, a crack marketing team has been formed for reserve brands such as Johnnie Walker Blue Label and Smirnoff and for the three of the six classic single malt brands."

He added: "We back our brands with good marketing teams and are extremely focused in our approach in the Indian market."

Diageo is partnering with domestic retail food chains to promote some of its brands.

According to the official, Diageo recently announced changes to its regional structure to improve focus and maintain performance momentum in the Asia-Pacific region.