UBL plans to expand its product offering, amid a growing beer market

19 Jul 2022 , 11:46 AM

According to United Breweries Ltd., the beer market is expanding in India as a result of rising disposable incomes, the popularity of low-alcohol drinks, and rising societal acceptance. According to the most recent annual report of UBL, the company, which is controlled by Dutch brewing corporation Heineken NV, seeks to increase its product line through innovation so that it can serve a broader audience, both in India and internationally (United Breweries Ltd).

UBL stated, “We plan to leverage and contribute to Heineken’s in-house experience thereby strengthening our mutual growth. Its initiatives are driven to capitalize on the young demographics and rising disposable income in India.”

Additionally, according to the company’s view, UBL also plans to improve its supply chain, which is essential for meeting consumer demand effectively.

UBL stated: “In India, we believe our greatest days are ahead of us as young people continue to select beer as a social lubricant” during the discussion of the sector overview.

However, it also stated that the industry’s potential has not yet been completely realized because of things like a relatively small universe of retail outlets, numerous governmental regulations, and high taxation policies in the majority of Indian states.

According to UBL, “rapid urbanization, a growing middle class, a shift in societal perspectives, the introduction of new low- and no-alcohol beer varieties, and technical improvements are positioned to fuel market expansion.”

A larger distribution of goods to final consumers may also be made possible by the emergence of online ordering and the simplicity of doorstep delivery in some states.

Overall, the industry foundations are still quite solid, and your business is certain that using the current tactics, it can direct, pioneer, and mold the Indian beer market.

With its flagship brand, “Kingfisher,” UBL dominates the Indian beer industry. Heineken presently owns 61.5% of UBL and is the biggest promoter shareholder.

It bought 16.15% of the equity shares of UBL from the Debt Recovery Tribunal (DRT), which was holding the transfer shares that belonged to the Vijay Mallya Group, in June of last year.

UBL’s gross revenue for the fiscal year that ended on March 31, 2022, was Rs1,311.74 crore.