United Spirits (USL) is planning to increase the contribution of its premium brands to its overall India-based business to up to 80%.

Since it was acquired by UK distiller Diageo in 2015, USL has been planning to improve the market position of its brands in the Indian market.

USL’s premium spirits portfolio currently includes brands such McDowell’s No.1, Royal Challenge and Signature whiskies.

“The future profit pool of this industry will be in prestige and above, and a lion’s share of our business will be in that segment.”

According to an exclusive report by LiveMint, the three brands generate higher margins, in terms of value, for the company.

USL chief executive Anand Kripalu was quoted by the publication as saying: “The future profit pool of this industry will be in prestige and above, and a lion’s share of our business will be in that segment.”

Last January, USL planned to adopt the franchise model for its non-premium spirits brands, including Bagpiper and Director’s Special, in certain states of India.

USL expects higher growth in the premium segment as it offers very little pricing scope in comparison to the popular segment.

Despite reporting an 8% decline in the net profit in the third quarter of fiscal 2017 and only a 1.17% increase in total revenue, the company is optimistic given the underlying consumer demand.