DIAGEO INDIA: A RESPONSIBLE GIANT
DRIVING PROFIT WITH PURPOSE
Ajay Jha
A senior Delhi-based independent journalist
In today’s world, where consumers are more
informed, connected, and socially conscious
than ever before, corporations are expected
to do more than just deliver products; they
are expected to deliver impact. This shift has
created a new kind of corporate ethos, one
that blends profitability with responsibility,
and growth with sustainability. Among the
companies leading this transformation is
Diageo India, a subsidiary of the global spirits
powerhouse Diageo plc.
Far from being just another player in the
alcoholic beverages industry, Diageo India
has emerged as a model of responsible
enterprise, demonstrating how a business
can thrive financially while contributing
meaningfully to society and the environment.
Diageo India operates through United Spirits
Limited, and is the second-largest spirits
company in the world by volume. Its portfolio
includes names like McDowell’s No.1, Royal
Challenge, Signature, Antiquity,, Black Dog,
and Black & White, brands that have become
synonymous with Indian consumer
preferences. Globally, Diageo PLC owns
some of the most prestigious alcohol brands,
including Johnnie Walker, Guinness,
Tanqueray, Baileys, Smirnoff, Captain
Morgan, Don Julio, Ketel One, and Gordon’s.
It also holds a significant stake in Moët
Hennessy, making it part-owner of luxury
labels like Dom Pérignon, Hennessy, and
Moët & Chandon.
But Diageo India is not just about global
prestige. Its homegrown artisanal single malt
whisky, Godawan is crafted in Rajasthan and
reflects the company’s commitment to local
culture, sustainability, and craftsmanship. This blend of global excellence and local
relevance is what sets Diageo India apart.
A Growing Economic Footprint
Diageo India’s contribution to the Indian
economy is both impactful and far-reaching.
According to a comprehensive study
conducted by Pahlé India Foundation, the
company generated ₹25,389 crore in
revenue in 2024, accounting for 0.074
percent of India’s GDP. Its indirect impact
through supply chains, ancillary industries,
and employment adds another ₹24,643
crore, contributing an additional 0.069
percent to GDP. Together, Diageo India’s
total economic footprint stands at ₹49,032
crore, a figure that underscores its role as a
major economic engine.
This economic contribution reflects a
dynamic ecosystem of manufacturing,
logistics, agriculture, hospitality, and
branding. Diageo India’s operations
stimulate growth across sectors, creating a
multiplier effect that benefits both urban and
rural economies. Its procurement practices
support thousands of small businesses, while
its tax contributions help fund public
infrastructure and services.
Investing in People and Their Potential
Diageo India’s operations span 36
manufacturing units across the country,
employing 5,832 individuals directly. But the
ripple effect is even more impressive. Over
6.4 lakh people are indirectly employed
through its supply chain and allied industries.
The company’s commitment to its workforce
goes beyond numbers. Employees receive
fair wages, medical insurance, paid leave,
provident fund contributions, and skill
development opportunities. These benefits
create a secure and fulfilling work
environment, reflected in the high retention
rates. Approximately 84.5 percent of factory
workers have been with the company for over
a decade. A survey conducted as part of the
impact study revealed that 97 percent of
executives and 92 percent of factory workers
reported high levels of job satisfaction, proof
of Diageo India’s inclusive and supportive
workplace culture.
The company has also made significant
strides in gender inclusion. Women now
make up nearly one-third of the executive
workforce, and targeted efforts at plants like
Alwar have increased female participation in
factory roles. Diageo India’s employment
model is not just about jobs. Rather, it is
about dignity, opportunity, and long-term
growth.
A Supply Chain That Builds Communities
Diageo India’s manufacturing ecosystem is a
well-oiled machine. Of its 36 plants, 30 focus
on bottling and distribution, five combine
manufacturing and bottling, and one is
dedicated solely to manufacturing. These
facilities are supported by a vast network of
industries associated with activities such as
raw materials, packaging, logistics,
machinery, branding, staffing, hospitality, and
more. This interconnected supply chain
ensures operational efficiency and stimulates
economic activity across sectors. Agro-based
industries linked to Diageo India generated
₹3,956 crore in value and supported 2.9 lakh
jobs, while packaging and logistics added
₹4,336 crore and 58,000 jobs.
The company’s procurement strategy is
designed to empower local vendors and
service providers. From sourcing grains and
spices to engaging branding agencies and
hospitality partners, Diageo India’s supply
chain is a facilitator for regional
development. Its partnerships with small and
medium enterprises help build resilient
communities and encourage
entrepreneurship.
Sustainability That Delivers Results
Diageo India has made sustainability a
cornerstone of its operations. Its distilleries
have achieved zero coal status, leading to an
84 percent reduction in greenhouse gas
emissions. The company has embraced
renewable energy, with several plants
sourcing over 95 percent of their energy
needs from renewables. Packaging is another
area where Diageo India shines.
Over 99 percent of its packaging materials
are recyclable, and more than half are made
from recycled content. The company has also
eliminated mono cartons at key facilities,
significantly reducing waste.
Water conservation is a major focus. At the
Alwar plant, Diageo India constructed check
dams along the Ruparel River, restoring
40,000 cubic meters of water and raising
groundwater levels by 100 to 125 feet. This
initiative led to a 30 percent increase in onion
cultivation land per farmer and a tenfold rise
in farmer incomes. The Nashik plant has
adopted the Miyawaki afforestation
technique, creating dense green cover and
supporting local nursery vendors. These
efforts enhance biodiversity, improve the
water table, and provide economic
opportunities to surrounding communities.
Social Impact That Goes Beyond
Compliance
Diageo India’s CSR initiatives are diverse,
targeted, and impactful. In the financial years
2024 and 2025, the company spent ₹48.2
crore on CSR across multiple states. These
efforts focused on water, sanitation, and
hygiene, including the construction of 264
sanitation facilities and the provision of clean
drinking water in rural areas. Through the
Diageo Bar Academy, over 8,500 individuals
are trained annually, with plans to reach
12,000 by 2030. This initiative has already
generated ₹2 crore in additional income, with
a projected ₹10 crore by 2030. Programmes
like Saksham provide long-term employment
to people with disabilities, while Learning for
Life equips individuals with hospitality and
business skills. Environmental restoration
projects such as the Great Indian Bustard
conservation in Rajasthan and mangrove
plantations in Odisha enhance ecological
balance and carbon sequestration.
Diageo India’s CSR strategy is not just about
philanthropy. It integrates its initiatives with
national priorities like skill development,
gender empowerment, and climate
resilience. The company plays a constructive
role in India’s development journey. Its
partnerships with local governments, NGOs,
and community leaders ensure that CSR
projects are grounded in real needs and
deliver measurable outcomes.
Profitability That Reflects Strategic Vision
Despite fluctuations in sales volume and
revenue, Diageo India has demonstrated
consistent profit growth.
Between the
financial years 2020 and 2024, profit before tax and net profit grew at 8.24 percent
and 13.24 percent compound annual growth
rate, respectively. This growth is attributed to
the company’s premiumisation strategy,
which focuses on high-margin products,
operational efficiency, and cost
management.
Even as the number of regular
employees declined slightly, Diageo India
maintained its investment in human capital,
with per capita employee benefits remaining
stable. The company’s ability to increase
profitability while reducing environmental
impact and enhancing social outcomes is a
rare achievement in today’s business world.
This strategic clarity has made Diageo India a
benchmark for resilience.Its ability to adapt
to market shifts, invest in innovation, and
maintain profitability during challenging
periods such as the pandemic and supply
chain disruptions speaks to its long-term
vision and operational discipline.
A Model for Policy, Investment, and
Community Development
Diageo India’s operations offer valuable
lessons for governments, investors, and
communities. For policymakers, the
company’s fiscal contributions and regional
development strategies show how private
enterprise can support public infrastructure.
For investors, Diageo India’s financial
resilience and sustainability credentials make
it a compelling long-term proposition. For
communities, its employment practices and
CSR programmes provide pathways to empowerment, inclusion, and economic
mobility.
The company’s transparent reporting and
third-party assessments, such as the Pahlé
India Foundation study, reinforce its
credibility and accountability. Diageo India’s
approach to stakeholder engagement is
collaborative, evidence-based, and
forward-looking. It is not only a participant in
India’s economic story but also a contributor
to its social and environmental progress.
Commenting on the study findings, Praveen
Someshwar, Managing Director and CEO,
Diageo India says “As India embarks on its
transformative journey towards Viksit Bharat,
Diageo India remains a committed partner in
this endeavour, contributing to India’s
emergence as a global economic
powerhouse by 2047.
Our alignment with the
nation’s priorities — driving investments,
fostering innovation, creating jobs, advancing sustainability, and enabling
inclusive progress, reflects our commitment
to shaping a future that is both prosperous
and inclusive.”
A Blueprint for the Future
More than a business, Diageo India is a
blueprint for responsible growth. It proves
that a corporation can be profitable,
purposeful, and people-centric all at once. By
investing in environmental sustainability,
social welfare, and economic development,
Diageo India has positioned itself as a leader
in the age of accountability.
In a world where consumers demand more
than just products, Diageo India delivers
value, vision, and impact. It stands as a
shining example of how corporations can,
and must, care. Its journey is not just about
market share or brand recognition. It is about
building a legacy of trust, responsibility, and
shared prosperity.
