United Breweries Limited (UBL), majority-owned by Heineken N.V., has officially begun brewing its flagship Kingfisher beer at the newly leased Ilios Brewery in East Godavari, Andhra Pradesh, significantly expanding its regional production capacity.
The addition of Ilios Brewery brings an annual capacity of around 421,200 hl (5.4 million cases), supplementing the existing 1,123,200 hl (14.4 million cases) yearly capacity of UBL’s Srikakulam facility. Together, this expansion allows UBL to better satisfy the rapidly growing demand for Kingfisher across southern India.
Vivek Gupta, UBL’s Managing Director and Chief Executive Officer, emphasized that the localization strategy strengthens their supply chain while delivering long-term value to the local ecosystem: “By localizing production, strengthening our supply chain and creating long-term value for the local ecosystem, we are well positioned to meet rising consumer demand.”
Analysts at Nuvama Institutional Equities hailed the milestone as a key strategic move, noting that local production can boost margins and prevent stock-outs—particularly by avoiding interstate taxes—during peak demand periods.
This development follows UBL’s leasing agreement in May 2025 with Ilios Breweries Private Limited, which triggered a positive reaction in the stock market, with shares rising 2.3 percent on the Bombay Stock Exchange on the announcement.
Ilios Breweries, incorporated in 2007 and based in Hyderabad, Telangana, is an unlisted private company with an authorized capital of INR 300 lakhs (≈360,000 USD). The facility employs more than 500 people directly and indirectly and plays a vital role in packaging, logistics, and distribution, making it a strategic partner for UBL in southern India.
