India: United Breweries leases Ilios Breweries capacity to increase production in Andhra Pradesh

United Breweries Ltd. (UBL), India’s largest beer producer and part of the HEINEKEN group, has entered a leasing agreement with Ilios Breweries Pvt. Ltd. to ramp up manufacturing capacity in Andhra Pradesh, CNBC TV18 reported on May 20.

The move is aimed at strengthening its supply chain and meeting rising demand for Kingfisher beer and other offerings in the region. The arrangement, which became effective on May 20, follows excise approval received a day earlier.

UBL already operates a wholly owned brewery in Ranasthalam, Srikakulam district. The additional leased facility is expected to enhance distribution efficiency and support peak season volumes. The company cited evolving consumer preferences and regulatory support for lower-alcohol beverages as key reasons behind the expansion.

The manufacturing tie-up comes weeks after the company posted a strong set of numbers for the January–March quarter. UBL reported a 20.5% year-on-year rise in standalone net profit to ₹97.4 crore, beating the CNBC-TV18 poll estimate of ₹90 crore. Revenue rose 8.9% to ₹2,321.3 crore, and EBITDA jumped 31.2% to ₹186.3 crore, with margins expanding to 8%, ahead of analyst expectations.

Vivek Gupta, MD and CEO of UBL, has expressed confidence in sustaining double-digit growth in both volume and revenue in FY26, with premiumisation as a key driver. Premium beer volumes grew 34% in FY25, and the company expects to build on this momentum despite a challenging operating environment.

Shares of United Breweries closed 1.56% lower at ₹2,022.55 on May 20 on the BSE.

21 May, 2025