Lucknow: Uttar Pradesh is attracting more than Rs 1,000 crore in private investment in distilleries and other businesses linked to its sugarcane and ethanol industry, as companies expand their manufacturing operations in the state, Business Standard reported.
United Breweries, Allied Blenders and Distillers (ABD), Mount Everest Breweries and Woodpecker Greenagri Nutrients are among the companies investing in the state, according to senior government officials.
United Breweries is setting up a manufacturing unit in Unnao, while Mount Everest Breweries is establishing a unit in Hardoi. Woodpecker Greenagri Nutrients has already started operations at its unit in Farrukhabad.
ABD is investing Rs 600 crore to expand its manufacturing operations in Uttar Pradesh. The investment includes a new distillery that is expected to be commissioned within the next 24 months. Its bottling unit in Moradabad is also expected to start operations in the coming months.
“Uttar Pradesh has a progressive excise policy, supported by a conducive business environment for long-term investment. These excise-friendly policies have contributed to a significant growth in the market potential,” ABD Managing Director Amar Sinha said.
The investment activity comes as ethanol production in Uttar Pradesh continues to grow. The state produced 1.8 billion litres of ethanol in 2023-24, which increased to more than 2.23 billion litres in 2024-25, marking a 23% rise from the previous year.
Uttar Pradesh has also seen a significant increase in excise exports. Between April and June 2026, the state exported excise products worth $12.78 million, compared with $8.79 million during the same period of the previous financial year. This represents an increase of more than 45%.
The state’s share of India’s total excise exports increased from 10.2% to 12.6%, making Uttar Pradesh the third-largest contributor after Maharashtra and Punjab.
UP Excise Minister Nitin Agarwal said the state’s three-year Excise Export Policy 2026-29 is helping strengthen the sugarcane-based value chain, covering activities from sugarcane and molasses to processing, packaging, storage and transportation.
Distillers in Uttar Pradesh supplied 16.4 million additional bottles to other states between April and July 2026. This was 45.7% higher than the number supplied during the corresponding period of 2025.
The growth in the excise and distillery sector is important for Uttar Pradesh’s agriculture-based economy, with sugarcane supporting nearly five million farmer households. The expansion is also supporting growth in food processing and other businesses linked to the sugarcane industry.
