UBL sees India as key growth engine for Heineken; focuses on premiumisation, margin expansion

New Delhi: United Breweries Ltd (UBL), the country's largest brewer and a part of Heineken NV, said India remains central to the growth of the Dutch brewing major, as the market is witnessing rising premiumisation.

"India sits at the heart of Heineken's growth agenda", which is "expected to be the largest volume growth contributor" in Heineken's focus markets between 2026 to 2030, UBL said in its Investor Presentation.

The Indian subsidiary of Heineken NV also plans to expand Ebitda margins from the current high single digits to the low-to-mid teens over the medium term.


Read more: UBL sees positive demand momentum in Q2, invests Rs 110 cr in Maharashtra brewery

UBL said India is currently the "fastest-growing volume market" within the Heineken portfolio and offers significant headroom for long-term expansion, backed by favourable demographics, increasing disposable incomes and evolving consumer preferences.

India is expected to rank among the top three contributors to premium volume growth, between 2026 and 2030, UBL said.

The company highlighted its strong brand portfolio in the country, which includes two of Heineken's leading global brands as well as Kingfisher, described as the group's second-largest local power brand and fourth-largest brand globally by volume.

Read more: Kingfisher maker United Breweries cuts West Asia crisis impact estimate to ₹350-400 crore

The Dutch major, which acquired a controlling stake in UBL in June 2021, is a leading player in the domestic market with brands such as Kingfisher, Kalyani Black B Bullet, Maharaja Premium Indian Pilsner and Taj Mahal Premium.

In India, UBL also sells beer under brands such as Heineken, Amstel Bier and Sol, among others, from the portfolio of the Dutch brewing major.

"UBL is driving beer category growth in India and is uniquely positioned to accelerate further growth and win in the Indian market," the company said.

Moreover, it also highlighted its 100 per cent localisation of malt and bottle requirements, which are sourced domestically. The company said local sourcing and supplier partnerships help reduce import dependence and transportation costs while strengthening supply-chain efficiency.

On profitability, UBL said it has identified multiple levers to structurally expand Ebitda margins through strategic initiatives and productivity improvements.

The company is "investing in the future while improving margins", said UBL adding it has "identified clear levers to structurally expand Ebitda margins building on strategic priorities and productivity initiatives".

UBL said premiumisation is accelerating across India, which is creating an increasingly attractive growth opportunity. The premium beer segment is growing approximately 2.8x faster than the overall category, with nearly 70 per cent of consumers having traded up from mainstream beer, it added.

It sees "more room to grow margins as premium is only accretive in 60 per cent" of its markets. UBL pointed to recent state-level reforms as evidence of the potential for category acceleration.

Karnataka's AIB (Alcohol-in-Beverage) based duty structure, which taxes beverages according to alcohol content, contributed to approximately 55 per cent category growth in the first month following implementation.