United Spirits Ltd (USL), a subsidiary of the British global alcoholic beverage company Diageo, announced on Tuesday the closure of its almost 200-year-old manufacturing facility in Uttar Pradesh.
The company’s board of directors announced the closure of the unit as part of its multi-year supply chain agility program, which includes brands such as McDowell’s, Royal Challenge, Signature, Johnnie Walker, and Black Dog.
The multi-year supply chain agility program, adopted by USL’s board of directors in January of this year, aims to make the company fit for the future.
“As part of aforesaid multi-year supply chain agility program, USL has closed its factory operations at the manufacturing unit located at Rosa, Village Rousarkothi, Post Rousarkothi, Dist Shahjanpur, UP”, the company stated.
The unit’s operations were halted in FY23, and no manufacturing activity has been done since then, according to the corporation.
The factory, according to the report, 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 report said.
The unit closed on October 31, 2023.
USL’s strategy now focuses on its premium and luxury items.
United Spirits Ltd (USL) sold over 30 lower-priced entry-level brands to Inbrew Beverages for Rs 820 crore last year.
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