United Spirits, the Indian arm of Diageo, has agreed to sell a production site in the eastern state of Odisha to local company Cupid Breweries & Distilleries.
In a stock exchange filing, Cupid Breweries & Distilleries said the site in Gopalpur has a production capacity of around 250,000 cases per month.
The fledgling firm called the acquisition “a significant step in the company’s growth and expansion strategy.”
Cupid Breweries & Distilleries will pay consideration of Rs 225 million ($2.4 million). The company has already paid an advance of Rs 10 crore as per the terms of the agreement.
Drinks only has approached Cupid Breweries & Distilleries and United Spirits for further comment.
Last week, United Spirits, which has been reshaping its manufacturing network in India, announced the closure of a manufacturing plant in the southern city of Hyderabad.
In a stock exchange filing, United Spirits, which makes brands such as Black Dog whiskey, said the closure is part of its “multi-year supply chain agility program” approved by the board in 2023.
Cupid Breweries & Distilleries was established in 1986 as Cupid Trades and Finance Limited. In 2024, the company noted that it was moving into alcoholic beverages with a name change to Cupid Breweries & Distilleries.
Last month, the group said its board had approved a plan to explore “potential opportunities” to acquire additional manufacturing sites across India.
The group stated that it had “operations, sub-implementation and
projects in the acquisition stage” that represent a total annual production capacity of
around 8.4 million cases of IMFL, 1.5 million cases of beer and just under 1.1 million liters of “craft brewery/microbrewery capacity.”
The filing, dated May 19, adds: “The board further noted that multiple projects are in advanced stages of operational readiness and that management continues to engage in discussions with potential strategic investors and business participants in the interest of the company’s long-term growth and expansion plans.”
“United Spirits Sells Site to Indian Startup Cupid Breweries & Distilleries” was created and originally published by Just Drinks, a brand owned by GlobalData.
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