United Breweries Limited (UBL), India’s leading beer producer, has announced plans to establish a new greenfield brewery in Uttar Pradesh (UP), marking its first such investment in over a decade. The decision, approved by the company’s Board of Directors on February 13, 2025, entails an investment of ₹750 crore and aims to bolster UBL’s presence in one of its most significant markets.
Strategic Expansion in Uttar Pradesh
Uttar Pradesh has emerged as a pivotal market for UBL, with the company’s business in the state experiencing approximately 20% growth in 2024. This robust performance underscores the region’s burgeoning demand for beer, prompting UBL to enhance its production capabilities to meet consumer needs effectively.
The proposed brewery is slated to have a production capacity ranging between 1.0 to 2.0 million hectoliters (mhl) and is expected to commence operations by the fourth quarter of the 2026-27 fiscal year. Designed to produce both mainstream and premium products, including the globally renowned Heineken® brand, the facility will accommodate packaging in both cans and bottles, catering to diverse consumer preferences.
Investment Details and Financing
The ₹750 crore investment will be financed through a combination of debt and equity. This strategic allocation of resources reflects UBL’s commitment to maintaining a balanced financial approach while pursuing growth opportunities. The infusion of capital into the new brewery aligns with the company’s broader objective of expanding its footprint in high-growth markets and capitalizing on favorable industry dynamics. marketscreener.com
Potential Location: Unnao
While UBL has not officially confirmed the exact location for the new brewery, industry speculation suggests that Unnao, situated in central Uttar Pradesh, is a strong contender. Unnao has recently attracted significant investments in the brewing sector, including a notable project by a Madhya Pradesh-based company. This company received official approval in November 2024 to commence operations of a brewery with an annual production capacity of 10 crore liters, positioning it as one of the largest facilities in the region. timesofindia.indiatimes.com
The strategic advantages of Unnao, such as its proximity to key markets and well-established infrastructure, make it an attractive location for brewing operations. Establishing the new UBL brewery in this area could further consolidate the region’s status as a burgeoning hub for the beer industry.
Uttar Pradesh: A Growing Hub for Alcohol Production
The state of Uttar Pradesh has been actively fostering an environment conducive to investments in the alcohol production sector. Over the past four years, the state has attracted more than ₹5,400 crore in investments for 31 greenfield alcohol distillation plants, collectively adding 1.45 billion liters to its annual production capacity. This surge in investment has not only augmented the state’s production capabilities but has also generated substantial employment opportunities, with over 5,000 jobs created to date.
In addition to distillation plants, Uttar Pradesh has witnessed the establishment of five new breweries within the same period, with a total investment of ₹363 crore. These developments underscore the state’s strategic importance in India’s alcohol industry and highlight the favorable business environment cultivated by the state government. business-standard.com
UBL’s Commitment to Growth and Innovation
United Breweries has a history of strategic expansions to meet the evolving demands of the Indian beer market. In 2018, the company announced plans to increase its manufacturing capacity by approximately 15% through a combination of expanding existing facilities and establishing new greenfield breweries. This proactive approach has enabled UBL to maintain its leadership position in the industry and cater to a diverse and growing consumer base. thehindubusinessline.com
The upcoming brewery in Uttar Pradesh represents a significant milestone in UBL’s growth trajectory. By investing in state-of-the-art production facilities and expanding its footprint in key markets, UBL is poised to capitalize on the increasing demand for beer in India. This strategic move not only reinforces the company’s commitment to innovation and quality but also contributes to the economic development of the region through job creation and infrastructure development.
As the project progresses, further details regarding the exact location, construction timelines, and operational specifics are anticipated. Stakeholders and consumers alike will be keenly observing how this development shapes the competitive landscape of the beer industry in Uttar Pradesh and beyond.
