United Spirits is keen to up its control of the supply of Extra Neutral Alcohol in India

United Spirits is keen to up its control of the supply of Extra Neutral Alcohol in India

United Spirits has secured a stake purchase in Indian bulk spirits manufacturer Sovereign Distilleries.

The firm, which is part of India's UB Group drinks giant, confirmed yesterday (4 April) that it has bought 41.54% of the spirits producer, which is based in the southern state of Karnataka. Financial details behind the transaction were not disclosed.

Reports out of the country earlier this year linked United Spirits with a full takeover of Sovereign for INR2.3bn (US$50.7m). The company said at the time that it is keen to increase its supply base for Extra Neutral Alcohol (ENA).

"Increasing self reliance in ENA, which is the core raw material for our business, is our highest priority," UB Group's chairman, Vijay Mallaya, was quoted as saying in local press this week.

In January, United Spirits lined up the full purchase of Pioneer Distilleries, which has a distillery near Nanded in Maharashtra, east of Mumbai.