United Breweries, popular for brands like Kingfisher and Heineken, is working with multiple states to introduce “equitable taxation and policy decisions” to help the industry grow. In the company’s latest annual report for FY25, Kripalu said the persistent politically driven narrative around prohibition in certain states presents a notable business risk.
“However, it is encouraging to observe that some states are beginning to recognise the limitations of total prohibition and are gradually shifting towards more pragmatic, regulated consumption models,” he said.
Kripalu said states such as Rajasthan, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh and Assam have adopted a long-term, reform-oriented policy. “Notably, Uttar Pradesh, with its significant market potential and progressive policy framework, has attracted Heineken’s first brewery investment into the state,” he said.
United Breweries has recently announced a Rs 750 crore investment in a new greenfield brewery in Uttar Pradesh expected to be operational by the fourth quarter of FY27.
For raw materials, especially barley, which is the key ingredient to make beer, the company is working towards farming models which are less vulnerable to market volatility in order to maintain a more stable supply, as per the report.United Breweries is already selling 71% of its portfolio in reusable formats, and 99% of all its packaging is recyclable by design. Kripalu said glass and can supply in the country continues to remain a challenge. The company has also imported new bottles last fiscal.Meanwhile, the company managing director Vivek Gupta’s remuneration grew by 40% year-on-year in FY25 to reach Rs 10.74 crore. Gupta said in the report that the net sales growth of 10% in FY25 was driven by the premium segment such as Kingfisher Ultra, Ultra Max and Heineken.
The company believes the potential of beer growth in India is still very high with the average per capita consumption being two litres which is among the lowest in the world with the global average being 30 litres.
