United Breweries Limited (UBL) has announced a new productivity and cost-effectiveness program aimed at achieving operational excellence and driving growth. The initiative includes streamlining business functions, optimizing resource allocation, and intensifying investments in brand building and consumer engagement. UBL anticipates sustained annualised savings of 3% to 6% through these measures. The company is reinvesting these savings to boost market growth and capabilities.
Driving Growth Through Efficiency
United Breweries Limited (UBL) is initiating a comprehensive transformation program aimed at boosting productivity and achieving higher cost efficiency amidst a dynamic market. The Board of Directors considered and approved the Productivity and Cost Effectiveness Program on January 24, 2026. This program focuses on operational excellence to secure growth.
Key Initiatives
The transformation includes reorganizing business functions, aligning teams and expertise with evolving business requirements. UBL is streamlining roles in Sales, Supply Chain, and related departments and establishing focused teams in Corporate Affairs, Customer Service, and Logistics. A new Greenfield facility was commissioned in Uttar Pradesh.
Cost Optimization Measures
UBL is prioritising its most valued SKUs and rationalising underperforming products to enhance operational efficiency and improve customer experience. Cost optimization actions include increasing the reuse of old bottles, reducing logistics costs, maximising domestic procurement of raw materials, and introducing targeted fixed cost measures.
Projected Savings and Reinvestment
These measures are projected to generate sustained annualised savings of 3% to 6%. These gains will be reinvested to foster market growth and capability enhancement, ensuring long-term value for investors, stakeholders, and partners. A Mangalore plant was closed to optimize the brewery presence.
Source: BSE
