United Breweries begins Kingfisher production at Ilios brewery

United Breweries begins Kingfisher production at Ilios brewery

United Breweries Limited (UBL) has announced that it has resumed the production of Kingfisher beer at its Ilios Brewery in Andhra Pradesh. The company entered into a leasing arrangement with Ilios Breweries Private Limited (Ilios) to increase the production of Kingfisher beer, addressing the rising demand for the iconic brand.

The decision to resume production comes after a series of challenges faced by UBL, including delayed payments and a lack of government approval for higher prices. However, the company has now overcome these obstacles and is committed to resuming normal operations.

UBL's move to increase production at Ilios Brewery is part of a broader strategy to meet evolving consumer preferences and drive growth in India's beer category. The company has been investing in its production facilities to expand capacity and meet the growing demand for canned beer.

In a recent earnings call, UBL's chairman Vivek Gupta highlighted the rising demand for canned beer and the need to address the shortage. The new facility at Ilios Brewery will add 0.4 million hectolitres of capacity, bringing the total capacity of the brewery to 0.5 million hectolitres.

UBL's decision to resume production at Ilios Brewery is a significant development for the company and the beer industry in India. It signals a commitment to meeting consumer demand and driving growth in the beer category. The company has invested Rs 90 crore in a new canning line at its Nizam Brewery in Telangana, further underscoring its commitment to expanding capacity and meeting consumer preferences.

References:
[1] https://www.financialexpress.com/about/united-breweries/
[2] https://economictimes.indiatimes.com/industry/cons-products/liquor/united-breweries-invests-rs-90-crore-in-a-new-canning-line/articleshow/123527011.cms