'We are impacted by recession so much as by other sectors. Though there is a decline in the pace or quantum of growth, we have grown by 20 percent over the previous fiscal. Sales continue to be good this fiscal too,' Nedungadi added.

Mallya has been scouting for strategic sale of equity in the holding company of the UB group to clear a portion of debts borrowed for acquiring the British-based Whyte & Mackay for $1.2 billion in 2007.

Talks with Diageo that began in November last year, were in limbo for some time before resuming in May and remained inconclusive since then.

Acquisitions of Shaw Wallace and Whyte & Mackay brands have made United Spirits the third largest distiller in the world.