Diageo’s Indian division has sold a production site to domestic business Cupid Breweries and Distilleries.
In a filing with India’s National Stock Exchange on Saturday (6 June), Cupid said it would pay INR225m (US$2.4m) for the land, building, plant and machinery “along with premium excise licenses” for the site, in Gopalpur in the eastern state of Odisha. The facility has a production capacity of approximately 250,000 nine-litre cases per month, Cupid said, although it is not clear which products or brands have been produced there by Diageo’s United Spirits division.
“The proposed transaction represents a significant step in the company’s growth and expansion strategy and envisages the acquisition of a large alco-beverage production unit,” said Cupid CFO Sachin Rawat. “Upon completion of the transaction, the company expects to significantly strengthen its manufacturing capabilities and establish a robust platform for future growth.”
Global Drinks Intel has contacted Diageo for further details about the transaction.
In March, United Spirits sold the Royal Challengers Bengaluru cricket franchise, netting its parent almost US$1.8bn. Meanwhile, two months earlier, the Bengaluru-headquartered division increased its holding in domestic non-alcoholic spirits company V9 Beverages.
