NEW DELHI: The beer market is gaining prominence in India owing to a rise in disposable incomes, popularity of low-alcohol beverages and growing social acceptance, said United Breweries Ltd.
The company, which is controlled by Dutch brewing firm Heineken NV, intends to enhance its product line through innovation thus catering to a larger audience, both in India and abroad, according to the latest annual report of UBL (United Breweries Ltd).
"We intend to leverage and contribute to the in-house expertise of Heineken thus augmenting our mutual growth," said UBL, adding, "Its initiatives are driven to encash the young demographics and increasing disposable income in India."
Besides, UBL also intends to fine-tune its supply chain, which is crucial in adequately catering to consumer demand, the company said in its outlook.
While discussing the industry overview, UBL said: "In India, we believe our best days are ahead of us as young people continue to choose beer as a social lubricant.
" However, it also added the industry's potential is yet to be fully unlocked owing to factors such as a relatively limited outlet universe, various government regulations and high taxation policies in most states across India. Rapid urbanisation, rising middle class and change in societal perspective, along with the launch of new low- and no-alcohol variants of beer and technological advancements, are poised to propel market growth," said UBL while sharing the industry overview.
Moreover, the introduction of online ordering and ease of doorstep delivery in certain states could further enable wider distribution towards end consumers.
"Overall, the industry fundamentals remain very strong and your company is convinced that with the current strategies in place, it can drive, lead and shape the beer market in India," said UBL.
UBL, with its flagship brand 'Kingfisher', is the leading player in the beer market in India. Heineken is now a majority promoter shareholder and owns a 61.5 per cent stake in UBL.
Last year in June, it acquired 16.15 per cent equity shares of UBL from the Debt Recovery Tribunal (DRT) under whose custody the transfer shares owned by the Vijay Mallya Group were being held.
For the financial year that ended on March 31, 2022, UBL's gross turnover was at Rs 1,311.74 crore.