Lucknow: Uttar Pradesh, India’s leading sugarcane and ethanol-producing state, is attracting more than Rs 1,000 crore in private investment in the downstream supply chain, including distilleries and manufacturing units, Business Standard reported.
The investments are being made by companies such as United Breweries, Allied Blenders and Distillers (ABD), Mount Everest Breweries and Woodpecker Greenagri Nutrients, according to senior state government officials.
United Breweries is setting up a manufacturing unit in Unnao district, while Mount Everest Breweries is establishing a unit in Hardoi. Woodpecker Greenagri Nutrients has already commissioned a unit in Farrukhabad.
ABD is investing Rs 600 crore to expand its manufacturing presence in Uttar Pradesh, including a greenfield distillery that is expected to be commissioned within the next 24 months. The company’s Moradabad bottling unit is also expected to become operational 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 expansion comes amid strong growth in the state’s ethanol production. Uttar Pradesh produced 1.8 billion litres of ethanol in 2023-24, which increased to more than 2.23 billion litres in 2024-25, registering a 23% year-on-year rise.
The state has also recorded strong growth in excise exports. During April-June 2026, UP’s excise exports stood at $12.78 million, compared with $8.79 million during the corresponding period of the previous financial year, an increase of more than 45%.
UP’s share in India’s total excise exports rose from 10.2% to 12.6%, placing it third after Maharashtra and Punjab.
UP Excise Minister Nitin Agarwal said the state’s three-year Excise Export Policy 2026-29 is supporting the sugarcane value chain, covering activities ranging from sugarcane and molasses to processing, packaging, storage and transportation.
Between April and July 2026, distillers in Uttar Pradesh supplied 16.4 million additional bottles to other states, marking a 45.7% increase over the corresponding period in April-July 2025.
The growth of the excise and distillery sector is significant for Uttar Pradesh’s agrarian economy, where sugarcane supports nearly five million farmer households. The expansion is also creating opportunities across the downstream food-processing and allied supply chain.
