United Breweries Ltd (UBL), part of the Heineken group, on Tuesday announced that it has entered into a leasing arrangement with Ilios Breweries Private Limited (Ilios) in order to ramp up its manufacturing capacity. In a regulatory filing, the company said that it is expanding its production capacity in Andhra Pradesh in order to strengthen its supply chain and meet rising consumer demand and ensure continued availability of Kingfisher beer.
The arrangement, which became effective on May 20, follows excise approval received a day earlier.
“In alignment with evolving consumer preferences and supportive regulatory changes favouring lower alcohol beverages, this expansion strengthens UBL’s presence in the state and positions the company to meet increased demand during peak seasons,” it said.
UBL currently operates a wholly owned brewery in Ranasthalam, Srikakulam district. To further enhance its regional footprint and build supply chain agility, the company is increasing its manufacturing capabilities through an additional facility on lease from Ilios Breweries Pvt Ltd. This expanded capacity will support long-term growth and improve distribution efficiency across Andhra Pradesh.
Jorn Kersten, Chief Financial Officer of United Breweries Limited, said, “Our production expansion in Andhra reflects our commitment to those who love Kingfisher and our portfolio of beers. We remain dedicated to delivering high-quality and locally brewed beer that is readily available across the state. This new facility marks a significant step in realizing our long-term growth ambitions in the state.”
The announcement comes just days after the company posted a 19.88 per cent jump in standalone profit for the fourth quarter of FY25 at Rs 97.4 crore. Revenue rose 8.9 per cent to Rs 2,321.3 crore, and EBITDA jumped 31.2 per cent to Rs 186.3 crore. Volume in the fourth quarter increased 5 per cent, despite temporary suspension in Telangana and industry-wide challenges from duty structure changes in Karnataka.
Shares of United Breweries were down 1.63 per cent at 5:10 pm today at a trading price of Rs 2,021.20.