RCB and Alcohol: The Winning Blend for United Spirits' Profit Surge

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The Indian Premier League (IPL) has turned into a veritable goldmine for liquor companies, with cricket fever driving profits through the roof.

Royal Challengers Bangalore (RCB), an IPL team, witnessed its revenue skyrocket in the financial year 2023-24, effectively doubling its earnings, reported Navbharat Times.

RCB's net profit soared to an impressive Rs 222 crore, a stark contrast to the Rs 15 crore loss suffered the previous year. The country's largest liquor company, United Spirits (USL), saw the share of cricket in its net profit rise to a remarkable 16 per cent.

In 2023-24, RCB's revenue surged by a staggering 163%, reaching Rs 650 crore compared to Rs 247 crore the previous year. Just two years ago, RCB's contribution to USL's profit was a mere per cent.

As the Indian arm of the world's leading distiller, Diageo PLC, USL highlighted RCB's dramatic turnaround in its annual report. After paying $111.6 million to acquire RCB in 2008, veteran industrialist Vijay Mallya-who had previously owned USL-integrated the team as a subsidiary.

Last year, USL also ventured into women's cricket, adding a team that clinched the first edition of the Women's Premier League. Despite Mallya's legal issues and residence in the UK, USL reported sales of Rs 25,724 crore and a net profit of Rs 1,312 crore for 2023-24, with profits growing by 25% despite a 7% dip in sales.

RCB: A Toast to Greater Profits?

According to experts, RCB's profitability may soon surpass that of USL's sixty-three liquor brands. Franchise owners and investors are now focusing more on optimizing returns on investment as the IPL develops and stabilizes.

Senior Vice President (Research, Consumer and Retail) Abhijeet Kundu of Antique Broking claimed in the report that RCB is now essential for USL's branding and marketing efforts in addition to its financial success. The revitalization of the Royal Challenge whisky brand, which was previously underperforming, is largely attributed to RCB's impact.