Diageo tight lipped on the Khaitan Split

Diageo seems to be tight lipped on the speculations of its planning to exit its joint venture with Radico Khaitan in India. Diageo had entered into a tie-up with Radico Khaitan in 2006 to gain a foothold into the Indian Spirits market. However the market is abuzz with the news that the multinational is looking to pick a stake in the Indian Billionaire owned United Spirits. Diageo’s stake in United Spirits would mean curtains down to the Khaitan-Diageo pact. The Group's brands include 8PM Royale, 8PM Bermuda XXX, Contessa, Old Admiral VSOP, Black Cat and Whitefield and Magic Moments. Analyst believe that the company has a 10% stake in the Indian Spirits market.