KOZHIKODE: The liquor production/selling in Kerala have been going through a trough, courtesy the previous UDF regime’s decision to close down bars and the Supreme Court’s recent order banning liquor shops along the highways in the state. This distillery in Kozhikode could be the most telltale motif of that strife.
The Vengally-based United Distilleries, started in 1988, had to shut down its operations from April 1, 2017 leaving over 300 workers jobless. Reason: Huge loss owing to the decline in sales order. Many could follow the path. The management and the employees are looking at all options to reopen the distillery, including cutting down the salary of the workers. But they are not expecting a miracle.
The distillery used to produce two lakh cases per day in 2017 and the numbers slipped to 85,000 in March 2017. “We need to produce at least 1.25 lakh cases a day to break even. The previous UDF Government’s decision to close down bars and the recent Supreme Court verdict have affected the sale of liquor and consequently our order books too started showing a fall,” said Vinod Krishnan V, manager, United Distilleries, owned by a group of NRIs based in West Asia.
“We don’t have our own brand. We have been making liquor for major groups like Radico Khaitan, Balaji Distilleries and Yezdi Distilleries. Following the drop in sales in Kerala, these companies have started placing orders with other distilleries which offered better pricing,” he said.
The unit used to make rum, whisky, brandy and vodka and sold exclusively to Bevco. “We have been operating as per labour rules complying with Minimum Wages Act. Compared to distilleries in other states, the workers here were given benefits like variable dearness allowance.
Apart from buying water from outside, the loading and unloading at the plant were handled by unions.
“This escalating input costs have affected us and now we are not in a position to run the plant for `37 per case which we get from the companies. The core management team and representatives of the workers will conduct a study to find viable ways to relaunch the company,” Krishnan said.