Diageo Set to Re-evaluate Stake in RCB Amid Business Revamp

Diageo, owner of the Royal Challengers Bengaluru, reveals plans for a strategic review of its investment. This decision could lead to a potential sale as Diageo grapples with pressures in its core beverage business. The team recently celebrated winning both IPL and WPL titles.

Diageo, the parent company of the Royal Challengers Bengaluru franchise, announced a strategic review of its investment in RCB. This signals a potential divestment as it reassesses its non-core assets amid pressures in its global beverage market operations.

In a filing with India's Securities and Exchange Board, Diageo indicated the review is set to be concluded by March 31 next year. RCB has been a critical asset for Diageo's subsidiary, United Spirits Ltd, yet its alignment with the core alcoholic beverage business has become non-essential, explained United Spirits CEO, Praveen Someshwar.

The timing of the review coincides with Diageo's struggle in its main business and follows mounting speculation about a sale post-IPL's recent victory celebrations. Despite the financial implications of a potential sale, the team is anticipated to continue its preparations for upcoming IPL and WPL seasons unabated.

(With inputs from agencies.)