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United Spirits buys Tern Distilleries

Submitted by stockgurucalls on Tue, 11/24/2009 - 03:48

United Spirits Ltd (USL) on Monday said it has acquired Andhra Pradesh-based Tern Distilleries, a primary distillation facility, for Rs 13.42 crore. A spokesperson for USL said with the acquisition of Tern, the liquor maker plans to augment its primary distillation capacity. A primary distillation unit essentially converts molasses/grains to rectified spirit before it is finally converted to extra-neutral alcohol.

The spokesperson for the company said with sales volumes growing at 14 per cent year-on-year, it will continue to look to augment its capacities both for distillation as also for manufacture of IMFL. "USL will capitalise on any opportunity that presents itself for such augmentation either at its inhouse facilities or through outsourced contracts," the spokesperson said. About one-fifth of USL sales volumes come from Andhra Pradesh. -Our Bureau

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