United Spirits, the Indian business of Diageo, is set to close another of its manufacturing units in Hyderabad, Telangana.
The plant in Venkateshwara Nagara, Malkajgiri is expected to shut by the end of August.
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In a stock exchange filing, United Spirits, which makes brands such as Black Dog whisky, said the closure is part of its “multi-year supply chain agility programme” approved by the 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.”
According to the filing, the facility generated Rs5.99bn ($63.08m), equivalent to 2% of the company’s revenue from operations in its financial year 2025-26 which ended 31 March.
Just Drinks has contacted Diageo for further comment on the closure and details on which products were made there.
The move follows last year’s closure of United Spirits’ Hyderabad manufacturing unit in Nacharam as part of the same supply chain agility programme. Set up in 1970, that facility produced United Spirits’ portfolio of Indian-made foreign liquors.
At the time, a Diageo spokesperson had told Just Drinks: “Despite significant efforts, including investments in expansion and optimisation, the operational costs remained high, and changing market dynamics made the unit unviable. 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.”
In November 2023, United Spirits ceased operations at its Shahjanpur facility in Uttar Pradesh.
For the financial year ended 31 March, United Spirits’ consolidated net sales value stood at Rs124.67bn, up 7.7% from the previous year. EBITDA grew 11% year-on-year to Rs22.86bn, while profit after tax increased to Rs17.09bn.
