India: United Breweries to shut its Mangaluru brewery
United Breweries Ltd. will shut its brewery unit situated in Karnataka's coastal town of Mangaluru by the end of June, the company announced on June 2.
"The closure of the Mangalore Brewery will not impact our business performance in the state," a stock exchange filing said.
The company is taking all necessary and responsible steps to support employees and workmen through this transition, the statement said.
Besides, UBL has initiated a strategic capacity consolidation and is pursuing expansion at its Nanjangud Brewery in Mysuru. It is making significant investments to scale up the supply chain efficiencies.
"This expansion will play a pivotal role in meeting the future demand efficiently and sustainably through enhanced operations within the State of Karnataka," UBL said.
During a post-earnings conference call last month, company executives noted a "rocky start to the year" in Karnataka because of the excise changes that had a big impact in sales.
UBL operates three breweries in the state, with one in Bengaluru.
United Breweries reported positive year-over-year growth in profit in the fourth quarter of the financial year 2024-25, even as it missed projections. For the whole year, the bottom bottom line rose nearly 8%.
Revenue during the quarter under review increased by 9% to Rs 2,321.3 crore, in line with estimates.
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