United Breweries Streamlines Operations: Mangalore Brewery Bows Out, Business Keeps Bubbling

Image Source: Acorp Consultants

United Breweries Limited (UBL), the top beer producer in India and the proud creator of the famous Kingfisher brand, has made the official announcement that it will be shutting down its Mangalore brewery, effective June 30, 2025. This decision is part of a larger strategy aimed at streamlining its brewery operations and improving supply chain efficiencies throughout Karnataka.

Key Highlights

Closure Date: The Mangalore brewery, situated at Plot No. 310, 311, 322E, Industrial Area, Baikampady, Mangalore – 575011, will stop operations on June 30, 2025.
Strategic Rationale: This move is designed to consolidate production capacity and enhance operational efficiency. UBL is making significant investments to expand its Nanjangud Brewery in Mysuru, ensuring it can better meet future demand.
No Impact on Business: UBL has reassured its stakeholders that this closure will not negatively impact its business performance in Karnataka. The production that was previously managed by the Mangalore unit will be smoothly transitioned to the upgraded Nanjangud facility.
Employee Support: The company is dedicated to supporting its affected employees and workers, taking all necessary steps to ensure their welfare during this transition.
Regulatory Compliance: UBL has officially informed the Karnataka Excise Department and the stock exchanges about the closure, adhering to all regulatory requirements.
Financial Performance: Even with the closure, UBL reported a 19.87% increase in consolidated net profit, reaching ₹97.76 crore for the January–March quarter of FY25, although revenue from operations saw a decline of 7.54% to ₹4,427.15 crore year-on-year.
Ownership: UBL is primarily owned by the Dutch multinational Heineken NV, which continues to steer its strategic direction.