Midas Golden distillery

The Hindu Business Line : UB Spirits unit increases capacities in South: " Mr Vijay Rekhi, President of UBSPD, told Business Line that the division has contracted new capacities with Sri Krishna Enterprises in Chittoor for Andhra Pradesh and with Midas Golden distillery in Chennai for Tamil Nadu.

Midas Golden, a Greenfield project with potential capacity of five lakh cases, is likely to go on stream with an initial monthly output of two lakh cases. It is learnt that UBSPD in future may look at the possibility of rolling out its ready-to-drink products such as Shotz from the new facility in Tamil Nadu.

Andhra Pradesh and Tamil Nadu are the two largest IMFL markets in the country with almost 30 million cases between them in a domestic market pegged at 85 million cases. These two markets along with Kerala remain as the main drivers of cheap to medium priced products which is seen driving the rather sedate three to four per cent annual growth of IMFL sales. Analysts had pointed out that majors as UB and Shaw Wallace were yielding space to the mid-sized and smaller regional players who were garnering volume from the explosion at the lower end of the market.

UBSPD's tie-up with Midas Golden in Tamil Nadu is outside its existing arrangement with its traditional ally, Balaji Group. Striking new capacities in Tamil Nadu is important as distilleries are limited and the State administration has been mulling a complete closure of its borders to imports from the neighbouring markets.

At present, it allows companies with a local manufacturing base to import brands registered with Tamil Nadu State Marketing Corporation (Tasmac), which controls the wholesale trade. In Andhra Pradesh, the new contract will compliment UBSPD's already running plants in Nacharam and Ongole."