NewsCorporate ActionsDiageo's United Spirits to Review Investment in Royal Challengers BengaluruDiageo's United Spirits to Review Investment in Royal Challengers Bengaluru
United Spirits Ltd (USL), Diageo's Indian subsidiary, has initiated a strategic review of its investment in Royal Challengers Sports Private Limited (RCSPL), which owns the Royal Challengers Bengaluru (RCB) cricket franchise. The review is expected to conclude by March 31, 2026. Reports suggest Diageo may seek $2 billion for the franchise. USL's sports business contributed 8.3% to total profit in the last financial year. Adar Poonawalla, CEO of Serum Institute of India, has reportedly shown interest in acquiring the team. USL also announced participation in several upcoming investor conferences.
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Diageo's Indian subsidiary, United Spirits Ltd (USL), has announced a strategic review of its investment in Royal Challengers Sports Private Limited (RCSPL), which owns the Royal Challengers Bengaluru (RCB) franchise teams participating in both the Men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments.
Strategic Review
USL expects to conclude the review process by March 31, 2026. Media reports suggest that Diageo may be seeking approximately $2 billion for the franchise, which has recently won both the IPL title and the Women's IPL championship.
Praveen Someshwar, Managing Director and CEO of United Spirits Ltd, stated, "RCSPL has been a valuable and strategic asset for USL, however it's non-core to our alcobev business. This step reinforces USL's & Diageo's commitment to continue reviewing its India enterprise portfolio to enable sustained delivery of long-term value to all its stakeholders, while keeping RCSPL's best interest in mind."
Financial Context
The strategic review comes as Diageo's sports business has contributed significantly to the company's overall performance. For the financial year ending March 31, 2025, the sports business accounted for 8.3% of the total profit.
Potential Interest
Media reports indicate that Adar Poonawalla, CEO of Serum Institute of India, has expressed interest in acquiring the team. This development could potentially mark a significant shift in the ownership landscape of one of IPL's most popular franchises.
Upcoming Investor Meetings
In related news, United Spirits Limited has announced its participation in several upcoming investor conferences:
| Conference Name | Date | Meeting Type |
|---|---|---|
| 28th CITIC CLSA India Forum | Nov 17-19, 2025 | Group/One-on-One |
| Avendus Spark INDX: Annual Investor Conference | Nov 17-19, 2025 | Group/One-on-One |
| JM Financial India Conference | Nov 19-21, 2025 | Group/One-on-One |
| Goldman Sachs India Consumer Forum 2025 | Nov 26, 2025 | Group Meeting |
The company has stated that no unpublished price-sensitive information is proposed to be shared during these investor conferences.
As the strategic review process unfolds, it will be interesting to see how this move impacts both United Spirits Ltd and the future of Royal Challengers Bengaluru in the competitive world of cricket franchises.
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