United Breweries Limited, India’s largest beer producer and part of the Dutch Heineken NV group, will shut down its Mangalore brewery in Karnataka by June 30, 2025, as part of a strategic realignment of its manufacturing footprint. The decision, publicly disclosed through a stock exchange filing, is aimed at streamlining operations and enhancing efficiency within the state.
The closure impacts the facility located in the Baikampady Industrial Area but, according to the company, will not affect overall business performance in Karnataka. Instead, United Breweries plans a significant capacity expansion at its brewery in Nanjangud, Mysuru district. The new investment will strengthen supply chain operations and ensure readiness for future demand.
The realignment comes at a time when the company is also boosting its presence in Andhra Pradesh. On May 20, 2025, United Breweries entered a leasing arrangement with Ilios Breweries Pvt. Ltd. to increase production capacity in the state. This new facility will supplement its existing operations in Ranasthalam, Srikakulam, and aims to provide better distribution and meet peak season demand. The initiative reflects the company’s long-term vision of shaping the beer category by promoting moderate, responsible consumption.
“Our production expansion in Andhra reflects our commitment to those who love Kingfisher and our portfolio of beers,” said Jorn Kersten, CFO of United Breweries, emphasizing the company’s continued focus on high-quality, locally brewed products.
Meanwhile, financial indicators show mixed signals. For Q4 FY25, United Breweries posted a net profit of INR 97.76 crore (USD 11.72 million), a 19.87% increase year-on-year, despite a 7.54% decline in revenue to INR 4,427.15 crore (USD 530.76 million). Full-year net profit rose 7.67% to INR 442.41 crore (USD 53.02 million). Nevertheless, shares dropped slightly by 0.53% following the Mangalore closure announcement, reflecting short-term investor caution.
The realignment in Karnataka and expansion in Andhra Pradesh underlines United Breweries’ dual approach of strategic consolidation and growth as it adapts to shifting market dynamics and evolving consumer preferences.
