United Breweries Ltd (UBL) is expanding beyond brewing beer into barley sourcing and malt production as India's largest brewer steps up its investments to secure raw material supplies and strengthen its supply chain amid rising input costs and global disruptions, according to its FY2025-26 annual report.
The company said it has partnered with Soufflet Malt to set up a new malthouse in south Rajasthan with an initial annual capacity of 110,000 tonnes. The project is expected to source up to 250,000 tonnes of barley annually and train more than 50,000 farmers, strengthening UBL's backward integration and reducing its dependence on external malt supplies.
The investment is part of a broader expansion programme that includes a greenfield brewery in Uttar Pradesh, a high-capacity canning line in Telangana, brownfield capacity additions, and contract manufacturing partnerships as the company prepares for long-term growth in India's beer market.
"Our greenfield brewery in Uttar Pradesh remains on track, with production expected to commence by mid-2027," Managing Director and Chief Executive Officer Vivek Gupta said in the report, adding that the company was investing to strengthen capacity, improve supply chain resilience, and support future growth.
UBL said the investments come as the beer industry faces higher costs linked to disruptions in global supply chains. The company said tensions in the Middle East affected packaging materials, freight, logistics, and energy costs during the year, prompting it to focus on localisation, productivity, and supplier resilience.
Chairman Anand Kripalu said the company remained confident about the long-term prospects of India's beer market but noted that geopolitical disruptions had increased pressure on raw materials, packaging, transportation, and operating costs.
"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 said India remained a priority market for Heineken globally, and UBL would continue investing across manufacturing and supply infrastructure to support future demand. During the year, the company also partnered with Crown to strengthen beverage can manufacturing capabilities as demand for premium beer formats increased.
The company said it had also expanded its retail infrastructure, increasing its visi-cooler network from about 15,000 units to more than 35,000 over the past two years to improve product availability at outlets.
In its earnings call, Gupta said the company had invested in capacity, quality, innovation, and supply infrastructure and did not face supply constraints despite industry-wide pressures.
