UB sets expansion plan

Vijay Mallya-promoted UB Group is investing Rs 1,000 crore in a 3-year span as it looks to hike brewing capacity by about 20%, including setting up two greenfield breweries. “The capital expenditure plan for United Breweries Group for the current financial year is Rs 488 crore. This is part of the programme, which commenced in April 2006 and involves expenditure of around Rs 1,000 crore over three years,’’ UB Group CFO Ravi Nedungadi said.The present brewing capacity of 60.25 lakh hecto litres is proposed to be expanded to 71.50 lakh hecto litres in two years.Nedungadi said UB is setting up a greenfield facility in Andhra with 60 lakh cases per annum capacity, which is expandable to 120 lakh cases per annum. Its another proposed greenfield plant in Karnataka would have a capacity of 30 lakh cases per annum initial capacity. “UB will increase the capacity of its breweries in Maharashtra, Orissa, Goa, Rajasthan, Punjab, Karnataka and West Bengal. It plans to enhance the capacity of the regions from 50.50 lakh hecto litres to 61.75 lakh hecto litres.’’