India: United Spirits closes its manufacturing plant in Uttar Pradesh
United Spirits Ltd (USL), owned by British multinational alcoholic beverage company Diageo, announced on October 31 that it has closed its manufacturing unit in Uttar Pradesh, which has been in operation for over 200 years. The decision was made as part of the company's multi-year supply chain agility program, which was approved by USL's board in January this year, the Goodreturns reported on October 31.
The multi-year supply chain agility program is focused on making the company fit for the future. As part of this program, USL has closed its factory operations at the manufacturing unit located at Rosa, Village Rousarkothi, Post Rousarkothi, Dist Shahjanpur, UP.
According to the company, operations at the unit were suspended in FY23 and no manufacturing activity has been undertaken since then. The factory has very old infrastructure and depleted machinery with age-old technology. Replacing such machinery and technology would have a huge cost to the company which is not viable as per the current market conditions.
The date of closure of the unit is October 31, 2023. As per its strategy, USL is now focusing on its premium and luxury products. Last year, it had sold over 30 entry-level lower-priced brands to Inbrew Beverages for Rs 820 crore.
The closure of the manufacturing unit in Uttar Pradesh marks a significant change for USL as it continues to adapt and evolve its business operations in India. The company's focus on premium and luxury products aligns with the growing demand for high-end alcoholic beverages in the country.
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