Diageo shuts down United Spirits bottling plant

Diageo-controlled Indian drinks group United Spirits has shut down a manufacturing plant in West Bengal, local reports claim.

United Spirits has closed down a bottling plant in West Bengal, citing space constraints

In a filing to the Bombay Stock Exchange, the company said the bottling plant had ceased operating from 28 February, citing space constraints and other operational issues, Business Standard reports.

However, United Spirits said the closure of the plant, which bottled 70,000 cases of McDowell’s No.1 whisky and Celebration rum brands every month, would not have “any significant impact” on its operations.

Around 100 people were employed at the plant, but United Spirits said “all the issues pertaining to employees and workmen have been amicably settled in accordance with law”.

United Spirits was acquired by UK drinks giant Diageo in July last year following protracted negotiations and legal set backs.

In its latest financial results, the group, chaired by Indian tycoon Vijay Mallya, reported a 21.4% rise in profits due to sales of its prestige and above brands.

Its McDowell’s No.1 whisky brand was overtaken by Officer’s Choice as the world’s best-selling whisky brand last year.