A consumption boom would follow the GST rate cut and the alcoholic beverage (Alcobev) sector would also be a major beneficiary out of this, said Praveen Swameswar, Managing Director & CEO, Diageo India.
“GST [cut] will significantly enhance consumption in the second half of this financial year. FMCG is at a great place and Alcobev consumption would be robust,” he said.
“When consumption grows, overall, the basket grows. Indulgences grow faster than they go away because your basic grocery needs are usually met. It’s the indulgences that are faced right now. And what better category to indulge in than us?” he stated.
Commenting on the company’s 2030 roadmap he said the company would clock double digit growth year after year and the size of company would be completely different than what it is today. He said innovations would be the key strategy for growth going forward.
“Last year we had ₹2,000 crore of cash. If I look at the next five years, our guidance has been double-digit [growth]. We see that comfortably coming through. We see that our margins expanding,” Mr. Swameswar said.
Stating that the company has now become lot more conservative he said, “If I invest back in the business, innovation is the single biggest investment and people are the second.”
“So the way I look at it, we will continue to generate cash, we will get into new spaces. Innovation is really a big, big area for us in terms of how do we make in India, for India and create products which are coming out of the local stable,” he added.
He said Indian single malt whisky was starting to play out well. “There are lots of play in that space, and as we start to see the growth, there are going to be various other propositions. So I see in terms of overall business, we are continuing to be on the same momentum.” he added.
He said innovation has a massive role to play and the scale and “size of this company could be very, very different. And those are exciting times.”
“Over the years, innovations will be unlocked and this will provide incremental revenue,” he said.
Answering a question he said the contribution of the Indian business to its parent in U.K. has been growing.
“India is growing at double-digit on a sustained basis. It’s continuing to get higher and higher share of people in business. The business generates its cash. And our interest needs to invest back and build this business as we go forward,” he said adding the company has been paying dividend for the last three years.
Incorporated in India as United Spirits Ltd. (USL), Diageo India is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It acquired USL in 2015 and has offerings in every price segment.
Published – September 08, 2025 10:09 pm IST
