United Breweries expands capacity in Andhra Pradesh with Ilios Breweries lease deal 

INDIA – United Breweries, a subsidiary of Heineken, has signed a leasing agreement with Ilios Breweries for an additional production facility in Andhra Pradesh, India.  

The move is part of the company’s strategy to meet rising consumer demand and improve the availability of Kingfisher beer. 

According to a filing with the stock exchange, the agreement will help enhance regional operations and build greater supply chain agility. The Bengaluru-based brewer currently operates a facility in Ranasthalam, Srikakulam district.  

The new leased capacity will strengthen its presence in the state and support the company’s long-term expansion plans. 

In a statement, United Breweries Chief Financial Officer Jorn Kersten said, “We are excited to expand our presence in Andhra Pradesh and are working hard to provide our consumers with more and better access to their favourite beer. This new facility marks a significant step in realising our long-term growth ambitions in the state.” 

United Breweries produces a wide range of brands including Kingfisher, Amstel, Heineken Silver, Bullet, and London Pilsner, operating 20 manufacturing sites across India. The expansion in Andhra Pradesh follows the company’s broader national growth strategy. 

In February 2025, the company’s board approved a Rs. 750 crore investment to set up a greenfield brewery in Uttar Pradesh, which is expected to begin operations by early 2027.  

The new facility will start with a 2 million hectoliter capacity, expandable to 5 million hectoliters, tapping into Uttar Pradesh’s large consumer base. 

For the fiscal year ending 31 March 2025, United Breweries reported standalone net sales of Rs.89.07 billion (US$1.04 billion), a 10% increase over the previous year. Earnings before interest and tax rose 15% to Rs.6.42 billion, while profit after tax grew 8% to Rs.4.41 billion. 

Earlier this year, the company resumed beer supplies to Telangana after a brief halt due to pricing disagreements with Telangana Beverages Corporation Limited (TGBCL). United Breweries had previously cited unsustainable losses and delayed payments as reasons for the suspension. 

The leasing move in Andhra Pradesh is expected to support continued growth while reinforcing United Breweries’ operational footprint in southern India. 

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