Diageo holds majority control of Indias United Spirits

Diageo holds majority control of India's United Spirits

Pathai Murali, the CFO of Diageo-controlled United Spirits, has resigned from the Indian company.

A filing with the Bombay Stock Exchange yesterday confirmed that Murali tendered his resignation from the post, "and from the board of directors of all subsidiaries of the company on which he was a director" earlier this week. "The company’s board of directors has accepted his resignation," said United Spirits in the filing.

When contacted by just-drinks, a spokesperson for Diageo said: "We are aware of Mr Murali’s resignation. We will be working with United Spirits to identify a suitable replacement and an announcement will be made in respect of that at a later date."

While no further details behind the move were given, one local report has highlighted speculation linking Murali's departure to an investigation initiated by Diageo into "possible irregularities in the transactions involving the company and (former parent company) UB Group".

Earlier this year, Diageo, which owns 55% of United Spirits, secured shareholder support at the second time of asking to permit the Indian company to produce and sell its brands in the country.

To read the BSE filing, click here.