United Breweries Ltd. (UBL), one of India’s leading beer manufacturers, has announced the closure of its brewery located in Mangaluru, Karnataka, by the end of June 2025. The move is part of a broader strategic capacity consolidation plan aimed at optimizing operations within the state. UBL currently operates three breweries in Karnataka one each in Bengaluru, Mysuru, and Mangaluru. Following the closure, the company plans to scale up operations at its Nanjangud facility in Mysuru to ensure continued supply and growth.
In a filing to the stock exchanges, the company stated that the closure of the Mangaluru unit will not adversely affect its business performance in Karnataka. UBL has initiated significant investments in its Mysuru unit to improve supply chain efficiencies and meet future market demand in a sustainable manner.
Strategic Expansion in Mysuru
As part of its operational restructuring, UBL is pursuing an expansion of its brewery at Nanjangud, near Mysuru. The company views this site as a strategic hub capable of supporting long-term growth. By consolidating production, UBL expects to streamline operations and enhance production efficiency across its Karnataka facilities.
In its official statement, the company emphasized that the Mysuru expansion will play a pivotal role in meeting future demand efficiently and sustainably through enhanced operations within the State of Karnataka. Recognizing the impact of the decision on its workforce, United Breweries has assured that all necessary and responsible steps are being taken to support employees and workmen during the transition. While no specific figures were disclosed, the company underscored its commitment to ensuring a smooth and fair process for those affected.
Excise Adjustments Pose Early Challenges for UBL
The announcement comes on the heels of what United Breweries’ executives referred to as a “rocky start to the year” in Karnataka, driven primarily by recent changes in the state’s excise policy. These regulatory adjustments adversely affected sales during the initial months of financial year 2024–25. Nevertheless, the company showcased financial resilience, managing to deliver solid results despite the headwinds.
Financial Highlights for 2024–25
In the fourth quarter of the financial year 2024–25, United Breweries reported year-over-year growth in profit, although the figures fell slightly short of analyst expectations. Revenue during the quarter increased by 9% to ₹2,321.3 crore, aligning with market forecasts. For the full fiscal year, the company’s net profit rose nearly 8%, indicating steady growth amid shifting market dynamics. On the Bombay Stock Exchange (BSE), shares of United Breweries declined marginally by 0.09%, closing at ₹2,011.40 following the announcement.
Conclusion
Through its ongoing expansion in Mysuru and strategic consolidation across Karnataka, UBL aims to build a more agile and sustainable production network. The company continues to focus on strengthening its supply capabilities while adapting to regulatory and market shifts. By phasing out operations at its Mangaluru plant and concentrating resources in its other facilities, United Breweries reaffirms its commitment to operational excellence, workforce responsibility, and long-term growth in one of its key regional markets.
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