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The country’s largest liquor maker, United Spirits Ltd (USL), said Thursday that its chief executive officer and chief executive officer, Anand Kripalu, will step down on June 30, 2021.
He will be succeeded by Diageo’s CEO for African Regional Markets, Hina Nagarajan, who will have the distinction of being the company’s first CEO and CEO.
Kripalu will step down from office on June 30, 2021 to continue the next phase of his career, according to a company statement.
“Under Anand Kripalu, USL has achieved a significant improvement in operating performance: margin growth, working capital and cash generation. Following the acquisition of USL by Diageo, Kripalu led the full integration of USL and has rekindled the market portfolio strategy, ”he added.
Furthermore, he said that Kripalu has always been a strong advocate for the positive impact of the alcohol industry. He was the USL’s first physician after Diageo took over in 2013.
Nagarajan will join USL on April 1, 2021 as appointed CEO. Effective July 1, in accordance with applicable law and upon receipt of the necessary approvals, she will assume the position of CEO and CEO of USL and will be part of the Diageo executive committee, reporting to John Kennedy, President of Diageo Europe and India.
Tenure in Diageo
Since joining Diageo in the summer of 2018, Nagarajan has led the company’s African Regional Markets (ARMs), which comprise operations in Ghana, Cameroon, Ethiopia, the Indian Ocean, Angola, and other countries.
Under his leadership, ARM has become a major growth engine for Diageo Africa, according to the company statement.
It has leveraged capabilities and synergies across the market to drive regional growth, which has led to a significant shift in supply chain performance at ARM, he added. Prior to joining Diageo, Nagarajan spent more than 30 years in CPG (Consumer Packaged Goods) businesses and held various senior marketing and general management positions at Reckitt Benckiser, Nestlé India and Mary Kay India.
In her most recent position prior to joining Diageo, IIM-Ahmedabad alumna Nagarajan was MD – China & SVP – North Asia with Reckitt Benckiser.
Way ahead for USL
Vijay Rekhi, former CEO of USL, said Line of business the liquor store needs to consolidate its position in the market. “The company is changing for the better with Diageo introducing better innovations and new products. They recently launched McDowell No. 1 in cans, which is a brand of a good innovation strategy, “he observed. Furthermore, he said that USL has the ability to maintain its leadership role due to its management structure and strong portfolio.
ICICI, in a recent note to investors, said USL’s second-quarter results posted a faster-than-expected quarter-on-quarter recovery in volumes (leading to a 3.4% year-on-year decline in volumes), despite the close continuity of commercial channels in several states, higher taxes in the post-Covid scenario and a contraction in business in Andhra Pradesh.
An analyst at Nirmal Bang said the company has seen progressive improvement with the opening of the economy, but remains cautiously optimistic due to the uncertainty in the trading channel.
USL shares closed 1.76 percent higher Thursday at ₹ 594.10.
