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The Brandy Market is Poised for a Dramatic Upsurge

The report, titled “An Increase in Demand and Opportunities for Global Brandy Market 2025,” provides a comprehensive analysis of the Brandy market, including market size, market statistics, and competitive situation. The report highlights the current market scenario and presents a dynamic vision of the global market in terms of market size, growth factors, consumption, production volume, and CAGR value.

The report identifies the key players in the Brandy market, including United Spirits Limited, Pernod Ricard, Campari Group, Radico Khaitan, Hennessy, Tilaknagar Industries, Great Lakes Distillery LLC, Weissbrand Distilling Co., Caddell & Williams, Stark Spirits Distillery, and others. The report also provides a detailed analysis of the regional market, including North America, Europe, Asia-Pacific, South America, Middle East & Africa.

The report further explores the key business players along with their in-depth profiling. The report provides the following key benefits for stakeholders:

* The study represents a quantitative analysis of the present Brandy market trends, estimations, and dynamics of the market size from 2025 to 2032 to determine the most promising opportunities.
* Porter’s five forces study emphasizes the importance of buyers and suppliers in assisting stakeholders to make profitable business decisions and expand their supplier-buyer network.
* In-depth analysis, as well as the market size and segmentation, help you identify current Brandy market opportunities.
* The largest countries in each region are mapped according to their revenue contribution to the market.

The report provides a comprehensive analysis of the Brandy market, including key drivers, trends, growth factors, and restraints. It also provides a competitive landscape analysis, regional outlook, and key benefits for stakeholders. The report is a valuable resource for individuals and market competitors to predict future profitability and make critical decisions for business growth.

After 160 years, Diageo’s Indian plant will close its doors for good.

United Spirits, the Indian arm of Diageo, is set to close its 160-year-old manufacturing facility in Hyderabad, Telangana, due to “evolving market dynamics and ageing infrastructure”. The facility, which contributes 1.5% to the company’s revenue, is expected to close by July 2025, subject to statutory approvals. The decision is part of a multi-year supply chain agility program approved by the board of directors in 2023.

The company has issued a statement addressing the closure, stating that the facility has been operational for approximately 160 years and plays a crucial role in the region’s industrial landscape. However, it has faced significant challenges, including evolving market dynamics and ageing infrastructure, which have led to a review of its business strategies. The company assures that it remains committed to the welfare of its workers and will provide wages during the transition period.

The decision comes as United Spirits experiences sales growth, with a 7.5% increase in sales revenue for the nine months ending December 2024, driven by the growth of its prestige-and-above segment, which rose by 8.8%. Diageo’s organic sales also rose by 1% for the last six months of 2024, with revenue in India increasing by 6%.

Diageo’s business in India has been boosted by the growth of its prestige-and-above segment, driven by brands such as McDowell’s, Signature, and Royal Challenge, as well as Scotch sales, led by Black & White. The company has also restarted its business in Andhra Pradesh after a five-year hiatus, following the state government’s introduction of a new excise policy.

Overall, the closure of the Hyderabad facility is part of United Spirits’ efforts to adapt to changing market conditions and focus on areas of strength, while also ensuring the well-being of its workers.

United Spirits to shut down another Indian manufacturing facility.

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Overall, the service is designed to help professionals in the drinks industry stay informed and up-to-date on the latest news, trends, and developments in the sector.

The ownership of Royal Challengers Bangalore lies with United Spirits Limited, a subsidiary of Diageo.

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Royal Challengers Bangalore (RCB) is one of the most popular franchises in the Indian Premier League (IPL), despite not having won the trophy yet. The team’s ownership, United Spirits Limited (USL), has played a significant role in backing RCB over the years, helping the franchise grow into one of the most valuable teams in the IPL. USL is India’s largest alcoholic beverage company, which owns popular global brands such as Johnnie Walker, Smirnoff, and Black & White.

The leadership at USL, including Chairman Mahendra Kumar Sharma and MD & CEO Anand Kripalu, plays a crucial role in overseeing the operations and strategy of RCB. The company’s parent, Diageo, a global leader in the alcoholic beverage industry, also provides international backing to RCB.

The ownership of RCB has seen significant changes over the years. In 2008, Vijay Mallya, the owner of Kingfisher Airlines, bought RCB for $111.6 million. However, due to legal troubles, Mallya was forced to step away from the franchise in 2016. Since then, United Spirits has been the sole owner of RCB, bringing stability and professionalism to the franchise.

RCB has a strong financial backing from various sponsors, including Qatar Airways, Happilo, KEI Wires and Cables, Jio, and Hindware Homes. These partnerships not only provide financial support but also help enhance RCB’s brand identity. The franchise also owns a team in the Women’s Premier League (WPL), Royal Challengers Bangalore Women (RCB-W).

Despite some controversies in the past, RCB has been largely free from legal issues since United Spirits took over. The franchise has a strong focus on cricketing success and fan engagement, which has contributed to its massive and loyal fanbase. Overall, RCB’s success is driven by its owners’ stability, professionalism, and financial backing, making it one of the most exciting franchises in the IPL.

ICICI Securities assigns a target price of Rs 1580 for United Spirits.

ICICI Securities has issued a “buy” call on United Spirits, with a target price of Rs 1580. The current market price of United Spirits is Rs 1427.25. The company is a large-cap entity with a market capitalization of Rs 103,792.97 crore, operating in the beverages-alcoholic sector.

The company reported quarterly results for the period ended December 31, 2024, with a consolidated total income of Rs 3505.00 crore, a 20.95% increase from the previous quarter and a 14.76% increase from the same quarter last year. The company reported a net profit after tax of Rs 338.00 crore.

The company’s gross margin expanded by 130 basis points (bps) year-on-year (YoY) to 44.7%, driven by stable input inflation and productivity savings. Underlying EBITDA margin expanded by 69 bps YoY to 17.1%. The company’s appraisal investment rate remains healthy at 11%.

ICICI Securities has cut its earnings estimates for FY25E and FY26E by 3% and 5%, respectively, and models revenue, EBITDA, and PAT CAGR of 10%, 15%, and 15% over FY24-27E, respectively. The company maintains an “add” call with a DCF-based revised target price of Rs 1580, down from Rs 1480 earlier. The company’s promoter holding is 56.67%, while FIIs and DIIs own 15.93% and 13.52%, respectively.

However, there are significant downside risks, including potential tax hikes and a ban on spirits in certain states. Therefore, investors must consult their financial advisors and seek independent advice before making any investment decisions.

United Spirits’ consolidated net profit dips 4.29% in Q4 December 2024.

United Spirits Limited, the largest spirits company in India and a part of Diageo Plc, has reported a decline in its consolidated net profit for the December 2022 quarter. The company’s net profit fell 4.29% year-on-year to ₹1,246.5 crore, as compared to ₹1,305.9 crore in the same period a year ago.

The decline in net profit is attributed to a 4.6% decrease in consolidated revenue from operations to ₹7,144.3 crore, compared to ₹7,499.4 crore in the corresponding quarter a year ago. This decline in revenue is due to a 3.5% decrease in domestic sales and a 6.2% decline in exports.

Despite the decline in revenue, the company’s operating profit remained stable, increasing 1.2% to ₹2,467.6 crore, driven by a 12.9% increase in operating expenses. The company’s gross margin improved 130 basis points to 34.6%, while its operating margin remained stable at 34.5%.

The company pointed out that the quarter was impacted by a 5.5% decrease in sales volumes due to the ongoing Omicron wave and increased competition in the market. However, the company believes that its portfolio of brands, which includes Johnnie Walker, McDowell, and Antiquated, will help it to recover from the current challenges.

The company also reported a significant improvement in its working capital cycle, which has led to an 18.2% decrease in inventory days and a 12.4% decrease in debtor days, contributing to an 11.3% decrease in working capital days.

In terms of the outlook, the company expects the spirits market to recover gradually as the COVID-19 situation improves and consumer spending increases. The company believes that its strong brand portfolio, effective cost management, and expected increase in sales volumes will help it to recover and grow in the future.

Overall, the decline in United Spirits’ profits is a temporary setback for the company, which is expected to recover as the spirits market improves and consumer spending increases. The company’s strong brand portfolio and cost management strategies position it well to navigate the current challenges and achieve future growth.

Stay informed: Top companies including UltraTech, United Spirits, Mphasis, Adani Green, Dr. Reddy’s, HPCL, and others are set to release their Q3 results today, keeping you updated on the latest industry news.

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The third-quarter earnings season has kicked off with several major Indian companies releasing their results. On Thursday, January 23, companies like UltraTech Cement, Adani Green Energy, Hindustan Petroleum Corporation, Dr Reddy’s Laboratories, and others released their quarterly earnings. According to analysts, the growth rate of Nifty 50 companies is expected to be single-digit and at best track underlying inflation in the economy.

Some key highlights include:

* UltraTech Cement posted a profit rise of 16.98% to Rs 1,473.51 crore, beating estimates.
* Adani Green Energy reported a 85.16% surge in profit to Rs 474 crore, with a revenue growth of 2.34% to Rs 2365 crore.
* Hindustan Petroleum Corporation (HPCL) reported a profit jump of 471.42% to Rs 3,022.90 crore, missing estimates, with a revenue growth of 0.35% to Rs 1,19,415.27 crore.
* Dr Reddy’s Laboratories reported a profit rise of 15% to Rs 1,341.60 crore, with a revenue growth of 6% to Rs 12,440.60 crore.
* United Spirits reported a profit drop of 4.29% to Rs 335 crore, with a revenue growth of 11.06% to Rs 7,732 crore.

According to brokerage firm InCred Equities, Dalmia Bharat’s volume in 3QFY25 saw a decline of around 1.5% year-on-year (YoY), but the long-term demand outlook remains strong.

Axis Securities also commented on Q3 performance of Hindustan Unilever, saying demand conditions remained weak, with urban growth continuing to remain weak, while rural areas continue to recover.

JM Financial analyzed Persistent Systems’ Q3 performance, stating that the company reported a well-rounded performance with revenue growth and margin expansion.

United Spirits CEO Hina Nagarajan to make way for HT Media head.

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United Spirits, a leading spirits company in India, is set to undergo a major change in its top leadership. Hina Nagarajan, the current Chief Executive Officer (CEO), is expected to depart from the company, likely to be replaced by Sunil Behl, the Chairman and Managing Director of HT Media Limited, a leading media and entertainment company in India.

The move comes as a surprise to many, given Nagarajan’s successful tenure at United Spirits, where she has played a crucial role in transforming the company into one of the top spirits companies in India. Under her leadership, the company has robustly grown its portfolio of brands, including McDowell’s and Blenders Pride, and expanded its presence across India and abroad.

Nagarajan’s departure is reportedly due to a restructuring exercise undertaken by the company’s parent organization, Diageo, which acquired the company in 2006. According to sources, the move is intended to bring in fresh perspective and expertise to steer the company through the increasingly competitive global spirits market.

Sunil Behl, the incoming CEO, is a seasoned industry veteran with over two decades of experience in the media and entertainment sector. He has been at the helm of HT Media since 2004, overseeing the growth of the company’s newspaper and television businesses. Behl’s expertise in the media and entertainment space is expected to bring a new dimension to United Spirits’ marketing and branding strategies.

While Nagarajan’s departure has sent shockwaves throughout the industry, many industry watchers are optimistic about the appointment of Behl, who is expected to bring a strong business acumen and strategic thinking to the role. The transition is expected to be smooth, with Nagarajan set to depart in the coming months. The exact timeline for the change has not been disclosed.

In the meantime, Nagarajan will continue to lead the company, ensuring a seamless transition and ensuring that United Spirits continues to deliver on its promises to investors, customers, and employees. As the company embarks on this new chapter, the spirits industry is likely to remain an area of high interest, with the potential for major changes and challenges ahead.

United Spirits appoints Praveen Someshwar, former CEO of HT Media, as its new Chief Executive Officer.

United Spirits, the Indian arm of Diageo, has announced that Praveen Someshwar, current CEO of HT Media, will take over as Managing Director and CEO on April 1. He will replace Hina Nagarajan, who is set to join Diageo’s global executive committee. Someshwar has five years of experience as CEO of HT Media and 24 years at PepsiCo, holding various senior roles. The leadership change comes amid scrutiny from federal and local agencies regarding allegations of suspicious payments and irregularities, which predated Nagarajan’s tenure. Someshwar will join the company on March 1 and formally take over on April 1, pending regulatory approvals.

United Spirits has received a ₹1.13 crore tax notice from the Kerala Government, related to Goods and Services Tax (GST)

United Spirits, a major Indian spirits manufacturer, has received a notice from the Kerala government proposing a fine of ₹1.13 crore (approximately $155,000 USD) for alleged non-compliance with Goods and Services Tax (GST) regulations. The notice is related to the company’s alleged failure to deposit the applicable GST on its sales across various states, including Kerala, between April 2017 and March 2019. United Spirits has been directed to rectify the discrepancies and pay the specified fine within a stipulated timeframe. The notice also requires the company to provide detailed information and documentation to support its GST returns. If United Spirits fails to comply with the notice, it may face penalties, including interest, penalties, and even a complaint to a quasi-judicial authority for the purposes of recovering the tax. The fine is limited to the period from April 2017 to March 2019, and the company has a window of 15 days to respond to the notice.

Kerala Government sends United Spirits a ₹1.13 crore tax notice for Goods and Services Tax (GST) deposits

United Spirits, a leading Indian spirits company, has received a Goods and Services Tax (GST) notice from the Kerala Government for an amount of ₹1.13 crore (approximately $150,000). The notice is reportedly related to alleged undervaluation of inputs and underpayment of GST on certain transactions in the 2017-18 financial year. According to industry sources, the company has been asked to pay the demanded amount, along with interest and penalty, by the end of next month. If the company fails to comply, it may face strict action, including attachment of its assets, cess action, and even criminal proceedings. The exact reasons behind the notice are not publicly disclosed, but it is believed to be linked to an audit carried out by the Kerala Commercial Taxes Department on the company’s GST returns. United Spirits is part of the UB Group and has its operations in various states, including Kerala.

Dolat Capital forecasts in-line growth for AlcoBev’s Q3 results, naming Radico and United Spirits as its top picks.

Dolat Capital has published a Q3 results preview, stating that AlcoBev’s growth will remain inline with its peers. According to Dolat Capital, AlcoBev’s revenue growth will be driven by a low single-digit increase in volume growth and a mid-to-high single-digit increase in price growth. Additionally, the asset light business model of these companies will help maintain operating leverage, resulting in a sharp improvement in profit after tax (PAT) growth.

Dolat Capital has also highlighted Radico and United Spirits as its top picks in the beverage space. Radico, with its diverse portfolio of brands, is expected to benefit from its presence in the premium segment, while United Spirits, with its dominant market share in the spirits space, is poised for long-term growth. In conclusion, Dolat Capital expects AlcoBev to report Q3 numbers in line with its peers, with Radico and United Spirits being top picks in the space. They also believe that both companies have a strong potential for medium to long-term growth.

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