United Spirits to shut Hyderabad manufacturing plant 

INDIA – United Spirits, the Indian subsidiary of global beverage giant Diageo, has announced plans to close its manufacturing facility in Venkateshwara Nagara, Malkajgiri, Hyderabad, as part of its ongoing supply chain transformation strategy. 

In a filing to the stock exchange, the company stated that operations at the facility are expected to cease by the end of August, subject to the completion of regulatory requirements.  

The closure forms part of United Spirits’ multi-year supply-chain agility programme, which was approved by the company’s board in January 2023. 

“As part of the said agility programme and subject to receipt of necessary statutory approvals, the company intends to transfer the excise licence issued by Telangana Prohibition & Excise Department to another party, following which our factory operations at the unit will cease,” the company said in the filing. 

According to United Spirits, the Hyderabad facility contributed revenue of Rs5.99 billion (US$63.1 million) during the financial year ended March 31, 2026, accounting for approximately 2% of the company’s total revenue from operations. 

The planned shutdown follows the closure of another Hyderabad manufacturing unit in Nacharam in 2025 under the same supply chain agility programme. Established in 1970, the Nacharam facility produced a range of Indian-made foreign liquor brands within United Spirits’ portfolio. 

Commenting on the earlier closure, a Diageo spokesperson said: “Despite significant efforts, including investments in expansion and optimisation, the operational costs remained high, and changing market dynamics made the unit unviable.” 

The spokesperson added: “In alignment with the company’s Voluntary Separation Scheme (VSS), management has offered a generous entitlement to all 192 workers, prioritising their best interests and wellbeing. This offer has been accepted by the workers’ union.” 

United Spirits has also streamlined its manufacturing footprint in other parts of India. In November 2023, the company ceased operations at its Shahjahanpur facility in Uttar Pradesh. 

Despite the restructuring, United Spirits reported strong financial performance for the fiscal year ended March 31, 2026. Consolidated net sales value increased 7.7% year-on-year to Rs124.67 billion, while EBITDA rose 11% to Rs22.86 billion. Profit after tax climbed to Rs17.09 billion. 

In March 2026, the company also signed definitive agreements to sell its entire stake in Royal Challengers Sports Private Limited, owner of the Bengaluru IPL franchise, to a consortium of investors for INR166.6 billion (US$1.78 billion). 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.