United Spirits shuts down 200-year-old plant in Uttar Pradesh: The key reasons

According to the USL, operations at the unit were suspended in FY23 and no manufacturing activity has been undertaken since then

   

United Spirits Ltd (USL), owned by British multinational alcoholic beverage company Diageo, on Tuesday said it has closed its over 200-year-old manufacturing unit in Uttar Pradesh.

The board of the company, which have brands including McDowell’s, Royal Challenge, Signature, Johnnie Walker, Black Dog in its fold, said it has closed the unit under its multi-year supply chain agility programme. The multi-year supply chain agility programme.

The multi-year supply chain agility programme, approved by USL’s board in January this year, is focused on making the company ‘fit for the future’.

‘As part of aforesaid multi-year supply chain agility programme, USL has closed its factory operations at the manufacturing unit located at Rosa, Village Rousarkothi, Post Rousarkothi, Dist Shahjanpur, UP,’ said USL.

According to the company, operations at the unit were suspended in FY23 and no manufacturing activity has been undertaken since then.

It said 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,’ it added.

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.

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