United Spirits to close Hyderabad plant

The Indian arm of Diageo, United Spirits, has reportedly announced the closure of its Hyderabad manufacturing facility, due to “evolving market dynamics and ageing infrastructure”. The company set July 31, 2025 as its estimated date of closure for the facility, subject to statutory approvals.

The Hyderabad factory located in the Industrial Development Area of Nacharam was established in 1970 and had undergone “significant efforts, including investments in expansion and optimisation”. In FY 2023-24, the Nacharam facility had contributed only 1.5 percent to the company’s revenue from operations.

Headquartered in Bengaluru, United Spirits explained in a statement that this closure is part of a “multi-year supply chain agility programme” that was approved by the board of directors in January 2023. “Over the years, the unit has experienced significant challenges, including evolving market dynamics and ageing infrastructure. In light of these challenges, the company is currently reviewing its internal business strategies,” United Spirits said in a statement.

The company further stated that “it remains committed to the welfare of its workers.” It will “continue to provide wages during this period.”

United Spirits also operates another site in Malkajgiri, Hyderabad, alongside facilities in Goa, Maharashtra, Bengaluru, Rajasthan, Odisha and West Bengal, and manufactures and distributes brands such as Black Dog, Black & White, Johnnie Walker and VAT 69.