USL firm Pioneer Distilleries to close down Nanded unit

Pioneer Distilleries Limited, a subsidiary of United Spirits, today said it will close down its plant in Nanded, Maharashtra due to water scarcity.
Manufacturing activities at its Balapur, Nanded unit producing Molasses Based Extra Neutral Alcohol (MENA) has been stopped from February 1, 2016 on account of shortage in water availability due to less rains during monsoon season in the region, the company informed BSE.
"Subsequently, the company has explored various options of procuring water from various other sources for operating the MENA plant which have not been fruitful," Pioneer Distilleries said.
It further added: "Now, it seems the Company does not have an option other than to stop the operations of the said MENA plant for the aforesaid reason, which was noted by the Board of the Company on March 03, 2016".

The plant, which had a capacity to produce 100 Kilo Liters per day, contributed around 46 per cent of turnover of the company, it added.
"Revenue of Rs 69.25 crore constituting 46 per cent of turnover of the Company was contributed by the aforesaid MENA plant during the financial year 2014-15," Pioneer Distilleries informed.