United Breweries plans to expand brewing capacity across India
United Breweries (UB), an India-based conglomerate with a major focus on the brewery (beer) and alcoholic beverages industry, will expand its brewing capacity in its breweries across the country by about 15% over the coming months.
The brewer intends to increase capacity both at existing breweries and through Greenfield breweries, according to UB president and CFO Ravi Nedungadi.
Nedungadi said the brewing industry is seeing very fast growth in India and demographics support growth.
"India today remains the only country in the world where quantum of spirits sold is higher than beer. So there is scope for strong multi-digit growth in the future," Nedungadi said.
The UB Group will invest over INR10bn ($0.18bn) over the next four years, the company's chairman, Vijay Mallya mentioned in the annual report.
UB is going to establish two Greenfield breweries one in Karnataka and the other in Patna, Hindu Business Line reported.
The company expects to commission the Karnataka brewery in the next financial year. It has already acquired land for the Patna brewery. The two breweries will make all beers of UB including Heineken.
While the current capacity of the breweries is 12.6 million cases a month, it will rise to 16 million cases a month once the expansion is complete.
UB's flagship brand Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. The company boasts more than 48% market share in India.
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