Report

United Breweries Ltd. (UBL), a leading beer manufacturer in India, will shut down its Mangaluru brewery by the end of June 2025. The company is implementing a strategic plan to consolidate capacity and streamline its operations within Karnataka. UBL currently runs breweries in Bengaluru, Mysuru, and Mangaluru. Once the Mangaluru unit closes, the company will ramp up production at its Nanjangud facility near Mysuru to maintain supply and support future growth.

UBL confirmed the decision in a filing to the stock exchanges, stating that the closure will not disrupt business performance in Karnataka. The company has already started investing heavily in its Mysuru facility to boost supply chain efficiency and meet rising market demand sustainably.

UBL Strengthens Mysuru as a Growth Hub

By restructuring its operations, UBL is focusing on expanding its Nanjangud unit, which it considers a strategic production hub. The company aims to centralise its operations in Karnataka to increase efficiency and long-term output.UBL highlighted the importance of the Mysuru expansion in its official communication, stating that the site will enable the company to meet demand more effectively. Acknowledging the impact on employees, UBL assured that it is taking all necessary and responsible steps to support its workforce through the transition. While the company hasn’t shared specific numbers, it emphasised a fair and smooth process for those affected.

Excise Policy Changes Create Initial Hurdles

UBL’s decision follows a difficult start to the financial year 2024–25 in Karnataka, primarily due to changes in the state’s excise policy. These regulatory revisions hit sales during the early months of the year. Despite these challenges, UBL demonstrated resilience by maintaining solid financial performance.

Financial Performance in FY 2024–25

In the fourth quarter of FY 2024–25, UBL posted a 9% rise in revenue, reaching ₹2,321.3 crore, meeting market expectations. However, profit figures slightly missed analyst projections. For the full fiscal year, UBL’s net profit rose by nearly 8%, reflecting steady growth amid regulatory and market changes. Following the announcement, the company’s shares on the Bombay Stock Exchange slipped by 0.09%, closing at ₹2,011.40.

Conclusion

By consolidating production and focusing on its Mysuru operations, UBL is building a more agile and sustainable manufacturing network in Karnataka. The company plans to adapt quickly to market and policy shifts while prioritising supply reliability and workforce welfare. Through this transition, UBL reinforces its commitment to long-term regional growth and operational efficiency.

Source: Foodtech News