On the back of strong growth in sales, India’s United Breweries adds production capacity in Andhra Pradesh to meet rising demand for lower alcohol beers

United Breweries Ltd (UBL), India’s largest beer manufacturer and a subsidiary of Dutch brewing giant HEINEKEN, has entered into a leasing agreement with Ilios Breweries Pvt Ltd to enhance its production capacity in Andhra Pradesh. UBL already operates a wholly owned brewery in the state at Ranasthalam, Srikakulam district.

The agreement, which took effect following regulatory clearance from excise authorities, is aimed at boosting supply chain efficiency and addressing increasing consumer demand for its flagship Kingfisher beer and other brands in the region. The addition of the leased facility will allow the company to meet peak season volumes, improve product availability, and expand its reach in one of India’s most populous southern states.

The move aligns with the company’s strategy to respond to changing consumer preferences and capitalise on supportive regulatory trends favouring lower-alcohol beverages.

The expansion follows a strong financial performance in the January–March quarter with UBL reported a 20.5% increase in standalone net profit. For the full fiscal year, ending March 31, the company reported standalone net sales of US$1.04 billion, a 10% year-on-year increase.

UBL operates 20 breweries across India and produces a range of brands including Heineken Silver, Amstel, Bullet, and London Pilsner. The latest capacity addition is expected to support long-term growth in Andhra Pradesh and reinforce UBL’s position in the competitive Indian beer market.