• United Breweries Ltd was incorporated in 1915 with 5 breweries in South India.
  • Company's flagship brand has achieved international recognition consistently and has won many awards at international beer festivals.
  • Kingfisher Premium Lager beer, is currently available in 69 countries.
  • Competition Commission imposed penalties totaling over Rs 873 crore on United Breweries in September 2021


Company Overview

United Breweries Ltd (NSE:UBL) was incorporated in 1915 with the coming together of 5 breweries in South India. Today, its beer business has shown strong growth and United Breweries is the undisputed king of the Indian beer market. The company's flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards at international beer festivals. The company's most popular beer, Kingfisher Premium Lager beer, is currently available in 69 countries and leads the way among Indian beers in the international market.1

It all began with 5 breweries in South India, the oldest of which, Castle Breweries, dates back to 1857. United Breweries, as these breweries were named in 1915, has come a very long way.

Soon afterwards, the sight of bullock carts carrying huge barrels or 'Hog's heads' containing beer became a household sight. These carts wheeled their way to customers, including British troops living in and around Madras, Bangalore and the Nilgiris. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history of beer in India, and the history of United Breweries!

The company was bought by the late Mr. Vittal Mallya in 1947, and since then, has consistently tasted success and never looked back. Today, each one of the 89,763 outlets selling beer in India, sell atleast one brand from United Breweries.


Plants Locations

Own ManufacturingContract Manufacturing
Andhra Pradesh – SrikakulamUttar Pradesh – Aligarh
Tamil Nadu – Kuthambakkam & AranvoyalAssam – Guwaati
Telangana – Mallepally & KothlapurDaman And Diu – Daman
Punjab – LudhianaSikkim – Rangpo
Goa – PondaMadhya Pradesh – Indore
West Bengal – KalyaniMeghalaya – Shillong
Kerala – Cherthala* & PalakkadJammu And Kashmir – Samba
Rajasthan – Chopanki & ShahjahanpurJharkhand – Ranchi
Karnataka – Mangalore, Nelmangala & MysoreWest Bengal – Hoogly
Maharashtra – Taloja & Aurangabad (2) UnitsRajasthan – Alwar
Odisha – Khurda 
Bihar – Naubatpur 
Haryana – Dharuhera 



The beer brands manufactured and marketed by United Breweries Ltd. have always been recognized for their international quality. A name synonymous with beer in India, Kingfisher stands for excitement, youth, and camaraderie.2

This largest-selling beer in India, commands a significant market share* in the country with an alternate bottle of beer sold in India being a Kingfisher brand. The company's product also available in 60+ countries across the globe.

Over the years, the Kingfisher family has expanded to include brands and variants that cater to all segments of audience. The Heineken brands augment its portfolio with stellar products of global repute, making UB a preferred option for consumers and customers alike.

  • Kingfisher Premium
  • Kingfisher Strong
  • Kingfisher Ultra
  • Kingfisher Ultra Max
  • Kingfisher Ultra Witbier
  • Kingfisher Storm
  • Kingfisher Blue
  • Heineken
  • Amstel Bier
  • Sol
  • Affligem
  • Edelweiss
  • Desperados
  • Bullet
  • Cannon 10000
  • Zingaro
  • Kalyani Black Label
  • UB Export
  • UB Export Strong
  • London Pilsner
  • London Pilsner Strong

Non-Alcoholic Brands

  • Kingfisher Radler Lemon
  • Kingfisher Radler Mint & Lime
  • Kingfisher Radler Ginger & Lime
  • Kingfisher Premium Packaged Drinking Water
  • Kingfisher Strong Power Soda
  • Kingfisher Storm Strong Soda
  • Kingfisher Ultra Non-Alcoholic
  • Heineken 0.0
  • Amstel Malt Classic Non-Alcoholic


Industry Overview

Unlike other emerging economies, beer Industry in India continues to remain quite traditional and is controlled by State Governments. It remains highly regulated with high taxation, restrictions on cross border movements, constraints on production, retailing and other barriers. In many parts of the country, wholesale and/or retail distribution is controlled by State Government monopolies. Also, in over 60% of the markets, State Governments directly dictate the price at which beer can be sold. These State controlled regulations are in addition to all other Central legislations that govern any other Industry.3

Beer has become one of the most popular alcoholic beverages in the country over the past two decades. Beer industry has registered a robust growth during the last one and half decades. From a total industry consumption of about 100 Million cases in 2005, the industry consumption crossed 300 Million cases per annum in 2019 prior to the impact of COVID. Three leading players contribute over 85% of the total industry sales with its Company maintaining its leadership in the Indian beer market. Beer comprises about 12% of the total alcohol consumed in India. While the alcohol beverages industry in India has been dominated by spirits, beer is emerging as the preferred alcoholic beverage for young Indians.

Compared to the global average per capita consumption of about 30 litres, the per capita consumption in India still hovers around 2 litres. However, the scope for growth in India continues to remain positive given the climate, young demographics and increasing disposable income.

Due to COVID, retail was completely shut from March 23, 2020 causing a considerable drop in sales for beer. Till first week of May 2020, dispatches could not be made due to lockdown. The initial months of the new financial year remained very challenging as retail reopened gradually in many states in India only after the 1st week of May. Demand was also negatively impacted due to increased taxation and other regulatory and logistical impediments. Generally, high-end consumer prices due to statutory levies inhibited the sales during the year.

On basis of alcohol content, beer in India can be categorized into Strong and Mild Beers. Strong beer which has an alcohol content between 6% and 8% dominates the beer market accounting for over 80% of the total beer consumed in India. The Super Premium beer segment within both the Strong and Mild beer categories has been growing faster than the overall beer industry. Industry volumes grew at a CAGR of about 7% during 2015 to 2020. However, during 2020-21, the Indian beer market shrunk for force majeure reasons of COVID.

The Industry has evolved from manufacturing standard beers such as strong and lager beer to flavoured and variety beers in line with trends in other developed countries. A plethora of beer brands are available in India to address the palate of various consumer segments. Majority of beer market growth is driven by young consumers, who consider beer a trendy drink, compared to traditional spirits.

Brew pubs have emerged in large cities such as Bengaluru, Pune and Gurgaon over the last few years. These outlets have introduced consumers to new types of beers for example ‘wheat beer’. The company's competitors too, have introduced brands from their international portfolio. UBL has been successful in addressing these new consumer trends and has introduced its own ‘Kingfisher Witbier’ thereby continuing to strengthen its position in the market.


Business Overview

For the year ended March 31, 2021 the company achieved a Net turnover of Rs.42,407 Million. Being an exceptional year, like to like comparison of financial numbers is less meaningful. The Gross turnover of UBL stood at Rs.101,834 Million. Interest cost was contained with effective working capital management. EBITDA for the year under review stood at Rs.4,298 Million as compared to Rs.8,835 Million in the previous year. Increased input cost and increase in price of beer to consumers due to increases in duties and COVID induced reduction in volumes, not only dampened the demand but were also instrumental in putting pressure on margins.

During FY21, UBL sales volume declined 38% due to COVID induced depressed market conditions. UBL continues to satisfy its customers with a wide range of quality products and innovative strategies with the ultimate objective of remaining at the fore-front of the highly competitive Indian beer market.

The 2020 IPL presented a huge opportunity for brands to show consumers they were an authentic part of their real-time experiences during the lockdown, and Kingfisher contextualized and integrated it’s highly successful “Kya Plan Hai” proposition with a backdrop of one’s home, through a multitude of communication touchpoints. A series of short, digital-first video modules were effectively utilized to build consumption occasions for the brand. The company also launched ‘Home Packs’ in the market, enabling consumer to stock up and enjoy responsibly in the safety of their homes.

Kingfisher Ultra, its premium segment offering, launched its TVC featuring brand ambassador Farhan Akhtar on Digital and OTTs in March. Farhan Akhtar’s versatility, suave demeanor and sophistication resonated with Ultra’s brand ethos and values.

Heineken, one of the flagship brands in the portfolio, aimed to garner traction by amplifying its association with the UEFA Champions League Football via #The Kickoff Campaign, to celebrate the return of the pandemic-deferred tournament, commemorating this with an 8-hour live-streamed virtual festival with the world’s biggest house music community – Defected Records – drawing attention from aficionados due to the brand’s aspirational value and the talent it is associated with. This online event featured DJs from across the world in unique locations, headlined by global star Idris Elba & supported by the likes of Bob Sinclair and Purple Disco Machine.

Manufacturing expenses for the FY21 amounted to Rs.20,363 Million, representing 48% of net sales, as against Rs.31,603 Million in the previous financial year, which constituted 49% of net sales. UBL has focused primarily on following COVID safety guidelines at all its breweries prescribed by Ministry of Home Affairs and local administrations. Delivering volumes as per market demand post national lockdown coupled with tight cost control measures, expanding footprint for premium brands and cost-saving initiatives which have helped it achieve this in an environment impacted by uncertainty, lockdowns and disrupted supply chains for bottles and commodities.

Capacity expansion was carried out in its breweries in Telangana, Karnataka & Rajasthan. The company's Telangana Brewery (UBGD) post expansion is the largest brewery in India with capacity of 3 mio HL/annum. Karnataka Brewery (UB Chamundi) is the largest Brewery (2.0 Million HL) in the state. Expansion of its Unit in Rajasthan with addition of Heineken footprint provides a hub for supply of premium brands in North India.

In its quest for sustainability, its total renewable energy usage for FY21 stood at 79.6%. UBL’s own units consumed 30.0% electricity generated from renewable sources. To supplement this, 96% of thermal energy came from use of renewable sources. The renewable energy usage is equivalent to carbon footprint of 25,304 tons of CO2 which is equivalent to 1.24 Million trees.

Bottles remain its biggest cost element. Due to constrained domestic capacity prior to start of 2020-21, imports were planned to bridge the gap and cover peak requirement. Volume drop due to COVID resulted in reduction of about 1,00,000 metric tons equivalent of Glass buying 38% which was mitigated by proportionately reducing contracted volumes with all suppliers without any financial impact. Volume drop in CANs by 47% was mitigated by extending hedge coverage into 2021-22 without any penalty on similar terms & conditions. Strategic long-term contracts are in place for new glass & cans which secures its requirement for coming year.

June 2021 Results

United Brewerie Consolidated June 2021 Net Sales at Rs 1,119.47 crore, down 11.35% Y-o-Y 4

July 29, 2021; Reported Consolidated quarterly numbers for United Breweries are:

Net Sales at Rs 1,119.47 crore in June 2021 down 11.35% from Rs. 1,262.82 crore in June 2020.

Quarterly Net Profit at Rs. 30.89 crore in June 2021 up 127% from Rs. 114.40 crore in June 2020.

EBITDA stands at Rs. 101.75 crore in June 2021 up 207.76% from Rs. 94.42 crore in June 2020.

United Brewerie EPS has increased to Rs. 1.17 in June 2021 from Rs. 4.33 in June 2020.

Recent developments

CCI slaps Rs 873 cr fine on UBL, Carlsberg India, others for cartelisation in beer sale 5

Sep 24, 2021,; Competition Commission on Friday imposed penalties totaling over Rs 873 crore on United Breweries Carlsberg India, All India Brewers' Association (AIBA) and other individuals for cartelisation in the sale and supply of beer in various states and Union Territories. A final order has been passed against three beer companies -- United Breweries Ltd (UBL), SABMiller India Ltd, now renamed as Anheuser Busch InBev India Ltd (AB InBev), and Carlsberg India Private Ltd (CIPL).

They have been found to be "indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers' Association (AIBA)," an official release said.

As AIBA was found to be actively involved in facilitating such cartelisation, the Competition Commission of India (CCI) has also held to be contravening the competition law.

"Giving benefit of reduction in penalty... 100 per cent to AB InBev and its individuals, 40 per cent to UBL and its individuals and 20 per cent to CIPL and its individuals," the release said.

The fines on UBL and Carlsberg India are nearly Rs 752 crore and Rs 121 crore, respectively. A fine of over Rs 6.25 lakh has been imposed on AIBA and various individuals have also been fined by the regulator.

"The CCI directed UBL and CIPL to pay penalties of approximately Rs 750 crore and Rs 120 crore, respectively, besides passing a cease-and-desist order," the release said.

The period of cartelisation was considered to be from 2009 to at least October 10, 2018, with CIPL joining in from 2012 and AIBA serving as a platform for facilitating such cartelisation since 2013. All three beer companies were lesser penalty applicants before the regulator.

As per the release, October 10, 2018, was the date on which the Director General (DG) conducted search and seizure operations at the premises of the beer companies.


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Tags: IN:UBL
Created by Asif Farooqui on 2021/10/14 13:56

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