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Leading beer maker United Breweries Ltd on Saturday (January 24) said its board of directors has approved a Productivity and Cost Effectiveness Program as the company looks to boost efficiency and strengthen competitiveness amid challenges in the Indian beer market.
In a regulatory filing, the company said the Indian beer market continues to face stringent regulatory frameworks, high taxation, rising raw material costs and intense competition from domestic and international players. Despite these challenges, United Breweries said India remains a structurally under-penetrated beer market with significant long-term growth potential.
“Whilst India remains a structurally under-penetrated beer market, United Breweries Ltd sees significant long-term growth potential and continues to invest in India’s beer market,” the company said.
Also Read: United Breweries Q2 profit drops 64% on stronger monsoon, soft beer market; misses estimates
It added that its investments include expansion of production capacity, innovation in product offerings such as new premium brands and flavours, strengthening of manufacturing and distribution networks, and initiatives around policy engagement, category expansion and brand building.
As part of the approved programme, the company said it is undertaking a comprehensive transformation to improve productivity and cost efficiency. "As part of our unwavering commitment to operational excellence, the Company is embarking on a comprehensive transformation programme to boost productivity and achieve higher cost efficiency," United Breweries said, adding that several initiatives under the programme have already been launched.
The company said it is reorganising business functions to align teams with evolving requirements, including streamlining roles across sales, supply chain and related departments. It is also setting up focused teams in corporate affairs, customer service and logistics to better support markets.
Also Read: United Breweries bets on Kingfisher Smooth, sees category growth of 5–6% in 2026
United Breweries said its network strategy includes optimising brewery presence through the commissioning of a greenfield facility in Uttar Pradesh, the closure of its Mangalore plant, and strategic partnerships in priority markets. Localising production of premium brands within states is aimed at strengthening supply chain resilience and responsiveness.
A detailed portfolio review is underway to prioritise key SKUs and rationalise underperforming products. Cost optimisation measures include increasing reuse of old bottles, reducing logistics costs, maximising domestic sourcing of raw materials and implementing targeted fixed cost actions.
“These collective actions, many of which are already in motion, are projected to generate sustained annualised savings of 3% to 6%,” the company said, adding that it plans to reinvest these gains to support market growth and capability enhancement. United Breweries said it will provide progress updates as the programme advances.
Also Read: United Breweries begins Kingfisher production at Ilios brewery in Andhra Pradesh
On Friday (January 23), shares of United Breweries Ltd ended at ₹1,451.00, up by ₹6.10, or 0.42%, on the BSE.
In a regulatory filing, the company said the Indian beer market continues to face stringent regulatory frameworks, high taxation, rising raw material costs and intense competition from domestic and international players. Despite these challenges, United Breweries said India remains a structurally under-penetrated beer market with significant long-term growth potential.
“Whilst India remains a structurally under-penetrated beer market, United Breweries Ltd sees significant long-term growth potential and continues to invest in India’s beer market,” the company said.
Also Read: United Breweries Q2 profit drops 64% on stronger monsoon, soft beer market; misses estimates
It added that its investments include expansion of production capacity, innovation in product offerings such as new premium brands and flavours, strengthening of manufacturing and distribution networks, and initiatives around policy engagement, category expansion and brand building.
As part of the approved programme, the company said it is undertaking a comprehensive transformation to improve productivity and cost efficiency. "As part of our unwavering commitment to operational excellence, the Company is embarking on a comprehensive transformation programme to boost productivity and achieve higher cost efficiency," United Breweries said, adding that several initiatives under the programme have already been launched.
The company said it is reorganising business functions to align teams with evolving requirements, including streamlining roles across sales, supply chain and related departments. It is also setting up focused teams in corporate affairs, customer service and logistics to better support markets.
Also Read: United Breweries bets on Kingfisher Smooth, sees category growth of 5–6% in 2026
United Breweries said its network strategy includes optimising brewery presence through the commissioning of a greenfield facility in Uttar Pradesh, the closure of its Mangalore plant, and strategic partnerships in priority markets. Localising production of premium brands within states is aimed at strengthening supply chain resilience and responsiveness.
A detailed portfolio review is underway to prioritise key SKUs and rationalise underperforming products. Cost optimisation measures include increasing reuse of old bottles, reducing logistics costs, maximising domestic sourcing of raw materials and implementing targeted fixed cost actions.
“These collective actions, many of which are already in motion, are projected to generate sustained annualised savings of 3% to 6%,” the company said, adding that it plans to reinvest these gains to support market growth and capability enhancement. United Breweries said it will provide progress updates as the programme advances.
Also Read: United Breweries begins Kingfisher production at Ilios brewery in Andhra Pradesh
On Friday (January 23), shares of United Breweries Ltd ended at ₹1,451.00, up by ₹6.10, or 0.42%, on the BSE.
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