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Asif Adil was a part of Diageo's talks with United Spirits Ltd for a proposed buyout of a 15% stake

Asif Adil, the managing director of Diageo the makers of popular scotch brand Johnny Walker and Smirnoff vodka

goodbye: Asif Adil's resignation has been confirmed by Diageo

has put in his papers even as talks with liquor baron Vijay Mallya's United Spirits Ltd (USL) for a proposed buyout of a 15 per cent stake enter a crucial stage.

Adil was a key part of Diageo's India operations. In a statement, Diageo confirmed Adil's resignation from the top job and announced that Ronal Abella would be the new managing director of its India operations. The statement issued in the name of Diageo Asia Pacific President John Pollaers, who is incidentally visiting Mumbai now, however, did not explain why Adil resigned on Wednesday night.

Diageo executive Ray Martins and a regional manager, Jasraj Katora, were "unavailable" according to a secretary answering their calls at Diageo's office in Lower Parel.

Talks with others

Apart from Diageo, USL is also reported to be talking to liquor manufacturers Pernod Ricard and ThaiBev for hiving off a minority stake. A senior USL official on anonymity said, "The resignation could be a fallout of the ongoing stake acquisition talks."

Mallya has already been quoted as saying that his company will be careful while drafting the joint venture agreement. "USL will be keen to ensure that the terms of the agreement are adhered to by both the partners," Mallya said.

But an industry observer said Adil had spoken to Mallya many times, but Mallya had, in fact, discouraged the proposal. The failure to clinch the deal was reportedly blamed on Adil. "He was unhappy, and so may have resigned," said the observer. USL's senior executives are in Spain and couldn't be contacted.

Drink and be merry
The United Spirits portfolio comprises over 150 products, including brands like Black Dog, Signature, Royal Challenge (all scotch) and Romanov (vodka).
Diageo markets brands such as Johnnie Walker, Smirnoff, Balleys and Guinness (beer) in India from its international portfolio.