United Breweries Ltd Eyes Growth Despite Challenges

United Breweries Ltd (UBL), a leading beer manufacturer, forecasts a 6-7% volume growth this fiscal year despite the challenges posed by adverse weather in key states. Chief Executive Officer and Managing Director Vivek Gupta attributes this resilience to premiumisation efforts and supports from governmental tax reforms.

Gupta highlighted recent GST reforms and emphasized the need for the government to address current tariff policies affecting the beer industry. He argued that beer, a local product with substantial employment generation, needs to be distinguished from stronger alcoholic beverages in tax considerations. Gupta also noted the ongoing supply issues, especially concerning packaging materials like aluminum cans.

Despite these challenges, UBL remains optimistic about the long-term outlook, expecting substantial growth and a preference shift towards beer driven by urbanization and an expanding youthful demographic. The company is also exploring state-specific expansion plans while advocating for further industry reforms to improve operative ease and competitiveness.

(With inputs from agencies.)