Diageo plans to expand in India independently after talks about it taking a stake in the country’s biggest liquor group, United Spirits, collapsed because the two drinks companies disagreed on price.

The owner of Johnnie Walker whisky has been holding long-running talks with United Spirits, a division of United Breweries, over acquiring a stake of up to 15 per cent in the company. Analysts have estimated such a stake to be worth about $450m, but the Indian group could have demanded up to $600m.