SABMiller shuts Skol Uran unit

While liquor major UB group is planning to rationalise production bases by discontinuing outsourcing with third-party distillers, another leading player SABMiller has suspended operations at its largest distillery in Maharashtra - Skol Breweries.

Skol Breweries suspended operations at its Uran unit from September 24, citing economic and infrastructural reasons. The distillery had 126 employees and a production capacity of two lakh hectalitres per annum.

The unit manufactured leading national brands of SABMiller- Haywards 5000, Knock Out and Royal Challenge. Skol Brewery was a wholly owned subsidiary of SABMiller India.

About the suspension of operations, brewery manager at Skol Breweries Rajesh Khanna, said the facility, which was established over 35 years ago, had outlived its economic life and was in need of repair and modernisation. And given the present circumstances, continuing of current operations was not financially feasible, he added

"The repair and modernisation would need a huge investment. However, given the unit's location it will find it increasingly difficult to supply and manage logistics and meet anticipated market demand in the future for beer," he said.

"And given the situation, we feel that this fresh investment will not be economically viable in the long term. The suspension is, therefore, an inevitable step that we have had to take in the best interests of the company and employees," he added.