United Breweries Ltd on Monday announced that its brewery unit in Ludhiana, Punjab is closing from June 30 in the wake of a long-term capacity lease agreement with a contract brewing unit.

The company has decided to close its brewery unit situated at C/60, Focal Point, Ludhiana, 141010, Punjab effective June 30, United Breweries Ltd (UBL) said in a regulatory filing.

"We have entered into a long-term capacity lease agreement with a contract brewing unit, thereby securing the supplies of the company's beer in Punjab and neighbouring states, including Delhi," it said.

UBL further said this long-term lease will play a pivotal role in meeting the future demand efficiently and sustainably through enhanced operations within the Punjab.

"The closure of the Ludhiana brewery will not impact our business performance in the state," it said, adding that the company is "also committed to taking all necessary and responsible steps to support our employees and workmen through this transition".