Profit before tax rises 16% to £2.1bn for six months ended 31 December.
The global drinks firm sees its power brands such as Guinness and Smirnoff drive sales
Diageo will also extend Smirnoff's sponsorship of Mallya's part-owned Force India Formula 1 team.
The new plant will help the company reduce the cost of producing the alcohol-free drink.
Now is the perfect time to plough into British beverages giant Diageo.
Edmund Shing explains the economic impact of the terror attacks on Paris
The acquisition will add Diageo's brands such as Sterling Vineyards, Blossom Hill and Piat d'Or to Treasury's portfolio.