MAM
Vijay Mallya eyes top slot post Shaw Wallace acquisition
MUMBAI: Having completed the financial closure of acquisition of Shaw Wallace and becoming the second largest distilled spirits company in the world, UB Group chairman Dr Vijay Mallya is already eyeing the top slot.
Before getting there, he has to fill in the gap of 25 million cases which Diageo (the leading beverage alcohol major with brands like Smirnoff, Johnnie Walker, Guinness, Baileys, J&B) sells extra. “There is strong organic growth. If we are able to make certain strategic acquisitions, then the leadership position is well within reach in five years,” he says.
Mallya’s acquisition plan could include some brands of Allied Domecq (the global spirits and wine player operating in 50 markets), which is currently in talks to sell off to Pernod Ricard (one of the world’s three leading wine and spirits operators). “If the takeover takes place, they will rationalise certain brands within the portfolio. We may find them interesting to pick up,” says Mallya.
He is also looking at Chinese listed companies, which are enjoying high valuation at this stage. “Why only West? I am looking at the eastern region as well,” he says.
The spirits market, in any case, is growing faster in India than in the matured economies. “We have been seeing sustainable double digit growth in India over the last 10 years. We see this trend continuing. Matured western markets, in contrast, have been witnessing single digit growth,” he says.
Mallya expects to sell 60 million cases this fiscal, benefiting from the acquisition of Shaw Wallace, which will push 20 million cases. He puts the retail sales value of this at around Rs 140 billion. Besides, 100 million new consuming class is going to be added by 2010, he adds.
But isn’t the gap between the market leader and UB still too wide to bridge? “We have increased seven million cases last year,” he tells Indiantelevision.com.
When queried whether he would be rationalising the brands, Mallya says the finalisation will take place after the integration plan is set in place within two months. “I will announce the integration plan leading to the formation of United Spirits, the legal process of which has already begun.” UB is being rechristened as United Spirits Ltd.
The integration process will involve adoption of human resource policies best to the breed. “We have to learn a lot from the brand personalities of Shaw Wallace. We will come out with a plan that is to provide equal opportunities to both the teams. We will be fair and equitable,” he assured the Shaw Wallace employees.
The recasted board of Shaw Wallace now comprises Mallya, SR Gupte (EVP, UB Group), Ravi Nedungadi (president & CFO UB Group), SD Lalla (appointed MD Shaw Wallace), CL Jain, Shrikant Ruparel and Mani Narayanswamy.
The UB Group has paid Rs 15.45 billion for the acquisition of Shaw Wallace, which includes Rs 3.12 billion for 25 per cent shares through the open offer. “We have paid for extremely valuable brands. We look forward to further invest and grow these brands,” says Mallya.
Brands
Nestlé India posts Rs 45,641 crore profit before tax in FY26
Strong cash flow of Rs 50,475 crore offsets higher costs, payouts.
MUMBAI: If there’s one thing brewing stronger than coffee this year, it’s Nestlé India’s balance sheet. The FMCG major closed FY26 with a solid financial performance, serving up steady growth even as costs and cash outflows kept the pressure simmering. For the year ended March 31, 2026, the company reported a profit before tax of Rs 45,641 crore, up from Rs 43,161 crore in the previous year. The numbers reflect resilience in core operations, supported by a strong consumption backbone across domestic and export markets.
Cash, meanwhile, was anything but idle. Nestlé India generated Rs 50,475 crore in net cash from operating activities, a sharp jump from Rs 29,345 crore last year highlighting robust underlying demand and improved working capital efficiency. Inventory reductions alone contributed Rs 2,809 crore, while trade payables rose by Rs 5,878 crore, adding further liquidity support.
But it wasn’t all smooth sailing. On the investing side, the company deployed Rs 8,297 crore towards property, plant and equipment, even as overall investing cash outflow stood at Rs 6,236 crore. Financing activities saw a significant drain, with Rs 31,794 crore flowing out driven largely by dividend payouts of Rs 23,139 crore and repayment of short-term borrowings.
The balance sheet tells a story of expansion with caution. Total assets rose to Rs 1,31,824 crore from Rs 1,21,933 crore, while equity climbed to Rs 51,569 crore, reflecting improved reserves and retained earnings. Cash and cash equivalents surged to Rs 13,205 crore, a sharp rise from Rs 761 crore a year ago, underscoring stronger liquidity despite heavy outflows.
Operationally, depreciation and amortisation expenses increased to Rs 6,992 crore, while finance costs and provisions continued to shape the cost structure. At the same time, working capital movements especially in inventories and receivables played a key role in boosting cash generation.
The broader takeaway? Nestlé India’s FY26 performance is less about headline growth and more about financial muscle. With strong cash flows cushioning rising investments and payouts, the company appears to be balancing expansion with discipline keeping its books as carefully measured as its recipes.
