New Delhi, July 27: Liquor firm United Spirits Ltd (USL) today said it will stop manufacturing operations in Bihar due to ban on sale of alcohol in the state that took effect from April 1.
"Our medium term intent is to exit from Bihar with respect to all manufacturing and related activities. We don't plan to export (products) from Bihar to other states," USL MD and CEO Anand Kripalu told analysts at investors call.
USL, which has a plant at Hathidah, said that in the 2015-16 fiscal, Bihar contributed about Rs 100 crore or 1 per cent to the company's total revenue. "While Bihar is in an important state, in terms of contribution to our total sales, it is not that important," he said.
USL had set up the plant in Hathidah in 1973. Diageo-owned United Spirits reported an over three-fold jump in its standalone net profit to Rs 43.80 crore for the quarter ended June 30 in the current fiscal, as against a net profit of Rs 11.61 crore in the year-ago period.
Its total income from operations stood at Rs 2,040.54 crore for the April-June quarter under consideration as against Rs 1,866.15 crore for the same period a year ago.