Latest news with #AnandKripalu
Economic Times
07-08-2025
- Business
- Economic Times
United Breweries sees minimal impact from global tariff risks due to local focus
Synopsis United Breweries anticipates minimal impact from global tariffs due to its local focus, according to Chairman Anand Kripalu. The company is actively pursuing volume growth and premiumization strategies to elevate its market share, currently below 50%. Efforts include boosting local barley sourcing and addressing can capacity challenges to strengthen domestic operations. India's largest brewery, United Breweries Ltd (UB), chairman Anand Kripalu said tariffs could pose a risk to the company with global supply chain disruptions; however, the impact is likely to be minimal due to UB's heavy reliance on local sourcing and to shareholders during the company's 26th annual general meeting on Thursday, Kripalu said the company is undertaking multiple efforts to drive volume growth and premiumisation when its present market share is sub-50%.Kripalu said there could be risks to UB's business due to tariffs, which could slow down global trade and lead to supply chain disruptions. "However, we do believe the bulk of our business is local, we largely produce locally, we sell locally, and our effort will be to make sure the impact on our domestic financials remains in check,' he chairman said the company's market share today is a bit shy of the halfway mark, and there have been significant efforts to drive volume growth. "And importantly, to drive premiumisation, so that people don't drink more but drink better,' said Indian beer market is nearly 445 million cases and led by three companies—United Breweries, AB InBev, and Carlsberg—who together have controlled almost 80–85% of the market for decades now. Vivek Gupta, chief executive of UB, said the company is improving its barley sourcing locally to reduce imports and support farmers. "There is an active program we are doing in Rajasthan to get more barley here, so that our reliance on imports is lesser,' he also reiterated the ongoing efforts by the company in sourcing glass bottles and cans, adding there were "some challenges in the capacity of cans in India, and we are working with partners to invest long term in India, so that we don't have those issues in the future.'Kripalu also mentioned that the company leads the category when it comes to premiumisation, with Kingfisher Ultra and Ultra Max enjoying growths of 38% and 59%, respectively, together giving the company's premium portfolio a 2% market share growth. He also mentioned the company expects the impact of increased duty on liquor in Maharashtra to have a positive effect on beer sales in the state.
Time of India
17-07-2025
- Business
- Time of India
United Breweries working with multiple states to introduce equitable taxation and policy decisions
High state taxes and state controls on pricing along with fluctuations in the availability of quality raw and packaging materials continues to be a challenge in business growth and profitability, said Anand Kripalu, chairman of United Breweries Ltd , the country's largest beer maker. United Breweries, popular for brands like Kingfisher and Heineken, is working with multiple states to introduce " equitable taxation and policy decisions" to help the industry grow. In the company's latest annual report for FY25, Kripalu said the persistent politically driven narrative around prohibition in certain states presents a notable business risk. Explore courses from Top Institutes in Select a Course Category Product Management Data Science Cybersecurity PGDM Healthcare Data Science Digital Marketing healthcare Management others Finance Artificial Intelligence MCA MBA Technology Degree Others Project Management Operations Management Design Thinking Leadership CXO Public Policy Data Analytics Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details "However, it is encouraging to observe that some states are beginning to recognise the limitations of total prohibition and are gradually shifting towards more pragmatic, regulated consumption models,' he said. Kripalu said states such as Rajasthan, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh and Assam have adopted a long-term, reform-oriented policy. 'Notably, Uttar Pradesh, with its significant market potential and progressive policy framework, has attracted Heineken's first brewery investment into the state,' he said. United Breweries has recently announced a Rs 750 crore investment in a new greenfield brewery in Uttar Pradesh expected to be operational by the fourth quarter of FY27. For raw materials, especially barley, which is the key ingredient to make beer, the company is working towards farming models which are less vulnerable to market volatility in order to maintain a more stable supply, as per the report. United Breweries is already selling 71% of its portfolio in reusable formats, and 99% of all its packaging is recyclable by design. Kripalu said glass and can supply in the country continues to remain a challenge. The company has also imported new bottles last fiscal. Meanwhile, the company managing director Vivek Gupta's remuneration grew by 40% year-on-year in FY25 to reach Rs 10.74 crore. Gupta said in the report that the net sales growth of 10% in FY25 was driven by the premium segment such as Kingfisher Ultra, Ultra Max and Heineken. The company believes the potential of beer growth in India is still very high with the average per capita consumption being two litres which is among the lowest in the world with the global average being 30 litres.
