India’s largest beer manufacturer, United Breweries Ltd (UBL), is expanding beyond beer brewing by entering barley sourcing and malt production as part of a major strategy to secure raw materials, strengthen supply chains, and support future growth in India’s rapidly expanding beer market.
According to the company’s FY2025-26 Annual Report, UBL has partnered with Soufflet Malt to establish a new malthouse in South Rajasthan with an initial production capacity of 110,000 tonnes annually. The facility is expected to source nearly 250,000 tonnes of barley every year and provide training to more than 50,000 farmers, significantly enhancing the company’s backward integration efforts and reducing dependence on external malt suppliers.
The barley and malt initiative is part of UBL’s broader investment programme, which also includes a greenfield brewery in Uttar Pradesh, a high-capacity canning line in Telangana, brownfield expansion projects, and additional contract manufacturing partnerships.
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Managing Director and CEO Vivek Gupta said the company’s Uttar Pradesh brewery project remains on schedule, with commercial production expected to begin by mid-2027.
“Our greenfield brewery in Uttar Pradesh remains on track, with production expected to commence by mid-2027. We are investing to strengthen capacity, improve supply chain resilience, and support future growth,” Gupta said in the annual report.
UBL noted that the beer industry continues to face higher operating costs due to global supply chain disruptions and geopolitical tensions, particularly in the Middle East. These challenges impacted the availability and pricing of packaging materials, freight, logistics, and energy during the year.
To mitigate these pressures, the company said it is focusing on localisation, supplier resilience, and productivity improvements to ensure stable operations.
Chairman Anand Kripalu stated that despite rising costs related to raw materials, transportation, packaging, and energy, the company remains optimistic about the long-term growth potential of India’s beer market.
“With our strong brand portfolio, extensive route-to-consumer network, and disciplined execution, we believe UBL is well positioned to lead and shape this opportunity over the long term,” Kripalu said.
Gupta further highlighted that India remains a priority market for Heineken globally, and UBL will continue investing in manufacturing capacity and supply infrastructure to meet future demand.
During the year, UBL also partnered with Crown to strengthen beverage can manufacturing capabilities, supporting the increasing demand for premium beer formats.
The company additionally expanded its retail cold-chain infrastructure, increasing its visi-cooler network from around 15,000 units to more than 35,000 units over the last two years, helping improve product availability across retail outlets.
Speaking during the earnings call, Gupta said UBL’s investments in capacity expansion, quality, innovation, and supply infrastructure enabled the company to avoid supply constraints despite broader industry challenges.
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