United Spirits Acquires NAO Spirits for ₹130 Cr – A Strategic Push into Premium Craft Gin Market
By CapitalKeeper | News | Indian Sock Market | Market Moves That Matter I 20th June 2025
United Spirits Acquires NAO Spirits for ₹130 Crore to Strengthen Craft Gin Portfolio
In a bold strategic pivot towards India’s booming premium alcohol segment, United Spirits Ltd. (USL) – a Diageo group company – has announced the completion of a ₹130 crore acquisition of NAO Spirits & Beverages Pvt. Ltd., the maker of Greater Than and Hapusa craft gins.
This acquisition is not just a portfolio expansion — it’s a calculated bet on the evolving Indian consumer and a step toward repositioning United Spirits beyond its legacy IMFL (Indian Made Foreign Liquor) brands.
Deal Structure and Financials
- Valuation: ₹130 crore for majority equity
- Stake Acquired: 100% (full buyout)
- Funding Source: Internal accruals; no debt raised
- Valuation Multiple: Estimated at 6.5x sales, signaling confidence in premium brand scalability
United Spirits first acquired a minority stake in NAO in 2022, this move completes the full buyout based on NAO’s strong growth performance.
About NAO Spirits
- Founded: 2015 by Anand Virmani and Vaibhav Singh
- Flagship Brands:
- Greater Than: India’s first craft London dry gin
- Hapusa: Premium Himalayan dry gin with native botanicals
- Retail Presence: Over 1,000 premium bars, restaurants, and liquor stores across metros
- Export Reach: UK, Singapore, UAE, parts of Europe
🍸 NAO carved a niche in the fast-growing urban gin scene, targeting upwardly mobile millennials and Gen Z.
📈 Market Context: Why This Move Matters
📊 The Indian Craft Gin Boom
- India’s gin consumption is growing at a CAGR of 12–15% over the last 5 years.
- Increasing experimentation in spirits post-pandemic.
- Young Indian consumers are shifting from whiskey to lighter, botanical-driven spirits.
🔍 Strategic Rationale for United Spirits
| Goal | NAO Acquisition Enables |
|---|---|
| Diversify beyond whiskey | Yes – entry into white spirits premium segment |
| Strengthen premium brand portfolio | Yes – NAO brings strong urban resonance |
| Expand export-ready offerings | Yes – craft gins have global market appeal |
| Target high-margin segments | Absolutely – gins command better unit economics than mass-market IMFL |
💬 Management Commentary
“This acquisition strengthens our commitment to premiumization and offers a platform to innovate with authenticity. NAO’s brands resonate deeply with new-age consumers and complement our strategy.”
— Hina Nagarajan, CEO & MD, United Spirits Ltd.
📊 Market Reaction & Stock Analysis
- Stock Movement (20 June 2025): USL closed at ₹1,072.40, up 1.6% intraday.
- 52-week range: ₹858 – ₹1,099
- YTD Return: +12.4%
📈 Technicals
| Indicator | Value | Signal |
|---|---|---|
| RSI | 61 | Bullish but near resistance |
| MACD | Positive | Trend continuation likely |
| Resistance | ₹1,085 | |
| Support | ₹1,040 |
🔮 Investment & Growth Outlook
| Strengths | Risks |
|---|---|
| Expands presence in fast-growing premium segment | Execution risk of scaling boutique brands |
| Diversifies away from whiskey-heavy portfolio | Higher brand-building costs |
| Appeals to global premium buyers & HNIs | Niche market within broader spirits universe |
Analyst View:
Most brokerages see this as a long-term value-accretive deal, especially as United Spirits realigns toward premiumization and global expansion. While short-term impact on financials may be limited, the brand equity and future margin potential is strong.
Summary Snapshot
| Metric | Details |
|---|---|
| Deal Value | ₹130 crore |
| Target | NAO Spirits – Maker of Greater Than, Hapusa |
| Segment | Craft Gin / Premium White Spirits |
| Strategic Impact | Portfolio diversification, urban millennial outreach |
| Investor Sentiment | Positive |
Conclusion
United Spirits’ acquisition of NAO Spirits is not just a brand deal — it’s a strategic repositioning into high-margin, youth-focused, and globally resonant products. As Indian consumers graduate toward more sophisticated palates and premium experiences, USL’s proactive shift from volume to value could offer long-term compounding potential for patient investors.
Verdict: Stay bullish on United Spirits for long-term brand expansion and premiumization upside.
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