India: United Breweries planning R350 crore capex

Beer maker United Breweries Ltd, controlled by Dutch multinational brewing company Heineken, plans to infuse around ₹350 crore as capital expenditure in 2023 to meet the expected volume growth in the country, according to a top company official, The Economic Times reported on October 30.

The company has "good capex plans" in place for its breweries to meet anticipated volume growth going into 2023, said its Chief Financial Officer Radovan Sikorsky in its latest earning conference call.

"We remain optimistic on the long-term growth of the industry," he said adding the evolving consumer trends will drive premiumisation.

When asked about the Capex plan, the CFO replied: "For the coming January to December the capex spend we are looking at somewhere in the region of ₹350 crore."

Moreover, the leading beer maker expects inflationary pressure to continue and it would pursue price increases, in combination with cost measures, to mitigate these cost impacts.

31 October, 2022