UB to invest Rs 400 Cr to expand capacity
The company is planning to launch Kingfisher wine in six months and mulling options to foray into China.
By PTI |
BANGALORE: United Breweries Limited (UBL), India's largest spirits company, would invest Rs 400 crore to expand production capacity, foray into the Chinese market and also launch Kingfisher wine, its Chairman Vijay Mallya said on Tuesday.
He said Rs 400 crore would be invested in a phased manner over the next three years to build and expand capacities in different parts of India, including in Rajasthan, Uttar Pradesh, Orissa and Andhra Pradesh.
Addressing the Annual General Meeting of UBL and later talking to reporters, he said the investment would scale up the capacities of the company by 50 per cent. "The plan envisages both setting up of greenfield breweries as well as augmentation of capacity and technology at existing sites".
Mallya said UB Group is all set to start operations in China. "I have given instructions to United Spirits to open an office (for marketing initially) in Shanghai immediately. I have identified the executive who will be transferred there to kickstart the business", he said.
"....all we know is that there is a market for our products (in China). I have walked around retail shops and bars (in China). Our range can fit in (there) quite nicely".
Mallya said the company would launch Kingfisher wine in six months. He also said that "Kingfisher ultra", which will be pitched directly against foreign brands, would be launched in the Indian market.
UBL is changing the distribution network in various parts of the world, including the UK and would give distribution to Scottish & Newcastle, where its distribution network is strong. "I would expect exponential growth of Kingfisher beer brand overseas through this arrangement", he said.
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