The Hindu Business Line : SABMiller shuts brewing plant in UP

The beer giant has cited "overlapping of production foot prints" as the reason for the closure of Narang brewery, which was the first unit acquired by the company when it set foot in India in the year 2000 through a joint venture with Narang Industries.

Mr Richard Rushton, Managing Director of SABMiller India Ltd, confirmed the plant closure and said the company was in the midst of "consolidating production footprints across the country" following the takeover of management duties of Shaw Wallace Breweries, the second largest domestic brewer, in May this year.

The company said workers of the closed plant, numbering over 100, were "settled" but it could not be ascertained whether they were separated from the company or re-employed in other units. Mr Rushton said the company would not put the brewery on sale. "We will keep the licence and look at reactivating the plant in future if there is a need," he said. Sources said the closure of Narang brewery became inevitable as Shaw Wallace's Central Breweries in Meerut, one of the bigger breweries in the country, came into the SABMiller fold.

It must be mentioned that the global giant reached an agreement with Shaw Wallace to acquire 50 per cent stake and management control in the latter for $133 million.

The deal gave SABMiller access to 17 breweries, which produced Shaw Wallace brands in addition to the four plants owned by the transnational in the country. In the wake of the consolidation of production footprints, SABMiller now operates 16 plants, including some key contract manufacturing tie-ups.

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