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United Breweries Limited ( (IN:UBL) ) has issued an update.
United Breweries Limited’s board has approved a broad Productivity and Cost Effectiveness Program aimed at driving operational excellence, boosting productivity and improving cost efficiency amid affordability pressures and intense competition in the Indian beer market. The transformation includes reorganisation of business functions, streamlined roles in sales, supply chain and related departments, and the creation of focused teams in corporate affairs, customer service and logistics; optimisation of its brewery network through a new greenfield facility in Uttar Pradesh, closure of the Mangalore plant and strategic partnerships in key markets; localisation of premium brand production; a detailed portfolio review to prioritise high-value SKUs and rationalise underperforming products; and cost-optimisation measures such as higher reuse of bottles, reduced logistics costs, greater domestic sourcing of raw materials and targeted fixed-cost actions. These initiatives, many already underway, are expected to deliver sustained annualised savings of 3%–6%, with the company planning to reinvest the gains to strengthen market growth and capabilities, underlining its intent to enhance profitability, competitiveness and long-term value for investors and other stakeholders.
More about United Breweries Limited
United Breweries Limited is a leading player in India’s beer industry, operating in a market characterised by stringent regulations, high taxation and diverse state-level policies. The company focuses on the production, innovation and marketing of beer, including new premium brands and flavours, while expanding its manufacturing and distribution network and engaging in policy-shaping and brand-building to capture the long-term growth potential of the structurally under-penetrated Indian beer market.
Average Trading Volume: 17,701
Technical Sentiment Signal: Sell
Current Market Cap: 382B INR
For an in-depth examination of UBL stock, go to TipRanks’ Overview page.