United Spirits puts RCB cricket team under strategic review as alcobev giant aims to focus on its core business

Royal Challengers Bengaluru (RCB) owner United Spirits Ltd has placed the cricket team under strategic scrutiny as the alcoholic beverage manufacturing giant and Diageo’s Indian arm aims to focus its attention on its core business.

“United Spirits Ltd is initiating a strategic review of investment in its wholly owned subsidiary RCSPL (Royal Challengers Sports Private Limited). RCSPL’s business includes ownership of ‘Royal Challengers Bengaluru (RCB)’ franchise teams,” the company said in its BSE filing.

Royal Challengers Sports Pvt. Ltd participates in cricket tournaments such as Men’s Indian Premier League (IPL) and Women’s Premier League (WPL).

The BSE filing states that the strategic review process is expected to be completed by March 31, 2026. Praveen Someshwar, managing director and CEO of United Spirits, said the company aims to focus on its core India operations to deliver long-term value to all its stakeholders while looking after the best interests of the cricket team.

“RCSPL has been a valuable and strategic asset for USL, but does not underpin our alcobev business. This step reinforces USL & Diageo’s commitment to continue reviewing its Indian corporate portfolio to ensure the sustainable delivery of long-term value to all its stakeholders, keeping RCSPL’s best interest in mind,” said Praveen Someshwar, managing director and CEO of United Spirits.

The company’s strategic review of its investment drive could also result in the sale of its cricket business, which generates non-core revenues for the alcobev giant.

Will Adar Poonawalla buy RCB?

Mint It had earlier reported that Serum Institute owner Adar Poonawalla is planning to acquire the Royal Challengers Bengaluru (RCB) cricket team for a valuation of up to $1-1.2 billion, citing a person aware of the development.

Deal will potentially add value to Royal Challengers deal ₹10,600 crore or more than 20 times the income of the top-ranked cricket team, according to the report.

RCB reported a 21% decline in revenue from core operations. ₹504 crore as the team played fewer matches in Men’s IPL. The company’s after-tax profit also fell by 36 percent ₹140 crore, accounting for 9% of United Spirits’ revenue.

Diageo India refused to comment on this development and emails sent to Adar Poonawalla remained unanswered.

According to a CNBC TV-18 According to the report, Adar Poonawalla aims to buy the entire RCB franchise instead of buying a minority stake in the company that manages the IPL team.