United Breweries Pops the Cap: ₹750 Crore Brewery Blitz Set to Quench India’s Beer Thirst!

Image Source: Trade Brains

United Breweries Ltd (UBL), India's largest brewer, will turbocharge its capacity with a major capital spending boost this fiscal, reflecting bold optimism in the nation's fast-growing beer market.

Key Highlights

Big Capex Boost: UBL will increase investment in FY26 to boost production capacity and increase cooler supply in retail stores across the country. The capex of the company for FY25 was ₹254 crore, higher by ₹64 crore compared to last year, and there is a new, bigger outlay scheduled for next year although the figure is not disclosed.
Greenfield Brewery in Uttar Pradesh: UBL is investing ₹750 crore in a state-of-the-art brewery in Uttar Pradesh, its first new facility in over a decade. Set to begin operations by early 2027 with an initial capacity of 2 million hectoliters (expandable to 5 million), the brewery will help UBL meet soaring demand in North India and reduce logistics costs.
Retail Cooler Expansion: The company wants to increase cooler installation in Maharashtra retail stores from the existing 10–15% to 50% in the next two years, maintaining optimal beer freshness and availability for customers.
Market Momentum and Premium Focus: UBL logged a 20.5% YoY profit jump in Q4 FY25, led by premium segment sales growth of 24% and healthy 5% volume growth in the face of regional headwinds. The premium brands of the company, such as Kingfisher Ultra and Heineken Silver, are maintaining their leadership.
Tackling Regulatory Winds: UBL contends with margin squeezes in southern states owing to increased taxation and operational issues but is hopeful, using price increases and tactical investments to counterbalance challenges.

As India's beer market is set to expand at a 7.7% CAGR and UBL boasting a commanding 52% market share, this capex binge sets the company up to catch the next wave of consumer appetite and cement its leadership far into the future.

Sources: Economic Times, YourStory, Financial Express, CNBC-TV18, Manufacturing ET

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