Kingfisher Breweries Invests ₹110 Crore in New Canning Facility

United Breweries Ltd (UBL) has announced a ₹110 crore investment in a new canning facility at its Ellora brewery in Maharashtra. This move is part of a strategy to significantly increase the production of its premium beer brands, including Kingfisher and Heineken Silver, and capitalize on an anticipated 20-25% annual growth in this segment over the next three to five years. This growth rate is nearly three times that of the broader Indian beer market.

The new canning line at Ellora is expected to commence production by the end of September, initially focusing on brands like Kingfisher Strong and London Pilsner. This investment follows a similar canning line announced earlier this year at UBL's Nizam brewery in Telangana. Canned beer currently accounts for approximately 20% of UBL's national sales.

UBL is also contending with increased input costs, with aluminium prices rising by 10-15% due to the West Asia crisis. The company has implemented price increases and internal cost-recovery measures to mitigate these pressures. Despite these challenges, UBL sees substantial opportunity in premiumization, with brands like Heineken Silver experiencing over 40% national growth.