USL Launches Strategic Review of Investment in Royal Challengers Bengaluru IPL Team

United Spirits Ltd (USL), a part of Diageo, announced a strategic review of its investment in Royal Challengers Sports Pvt Ltd (RCSPL). This entity owns the IPL team, Royal Challengers Bengaluru (RCB). The review hints at a potential sale of the business. USL disclosed this decision in a regulatory filing, indicating a thorough evaluation of its wholly-owned subsidiary, RCSPL.

RCSPL owns the "Royal Challengers Bengaluru" franchise teams. These teams compete in the Men's Indian Premier League (IPL) and Women's Premier League (WPL), organised annually by the Board of Control for Cricket in India (BCCI). RCB, featuring cricket star Virat Kohli, secured its first IPL title earlier this year.

Strategic Review and Future Plans

The strategic review process is expected to conclude by March 31st, 2026. USL Managing Director & CEO Praveen Someshwar stated that although RCSPL is valuable, it is not central to their alcoholic beverage business. He emphasised that this move aligns with USL’s and Diageo’s commitment to reviewing their India portfolio for long-term value delivery while considering RCSPL’s interests.

RCB was among the founding teams of the IPL, established in 2008 by Vijay Mallya. It became part of Diageo after acquiring Mallya's liquor business, United Spirits Ltd. RCB's home ground is M Chinnaswamy Stadium. The team won its first title in 2025 and was runners-up in 2009, 2011, and 2016.

Potential Acquisition Interest

In September, media reports suggested that Serum Institute CEO Adar Poonawalla was discussing a possible acquisition of RCB with USL. Recently, Poonawalla expressed interest on X (formerly Twitter), stating, "At the right valuation, RCB is a great team," indicating his interest in acquiring the 2025 IPL champion team.

Previously, in May 2022, following a strategic review of selected popular brands, USL sold and franchised certain brands to Inbrew Beverages. This move reflects USL's ongoing strategy to optimise its brand portfolio and focus on core business areas.

This strategic review underscores USL's dedication to evaluating its investments for sustained stakeholder value. The outcome will determine RCSPL's future direction within or outside USL's portfolio.

With inputs from PTI