United Breweries Ltd (UBL) has announced the closure of its brewery unit in Ludhiana, Punjab from June 30, 2026, according to a regulatory filing. The company confirmed that the brewery unit situated at C/60, Focal Point, Ludhiana, 141010, Punjab will cease operations effective June 30. This closure represents a significant operational restructuring for the beverage company within the Punjab market, as the company controls half of India's beer market. The closure is pursuant to intimation made to the Excise department of Punjab on May 18, 2026, as reported by UBL.
The closure is directly linked to a long-term capacity lease agreement with a contract brewing unit, as reported by UBL. According to the company's statement, this arrangement will secure the supplies of the company's beer in Punjab and neighbouring states, including Delhi. The long-term lease structure is designed to provide enhanced operational capabilities within the Punjab region, supporting future demand requirements. UBL emphasized that this long-term lease will play a pivotal role in meeting the future demand efficiently and sustainably through enhanced operations within the Punjab.
UBL has announced its decision to pull back from parts of the country where it cannot make money, as an unprecedented surge in input costs and rigid state pricing controls force the brewer into trade-offs between growth and profitability. "We are not going to do charity," Vivek Gupta, MD at UBL told investors. "I am not going to hesitate to take tough calls, where in the states the structural profitability is not there because of regulators."** This is a time when the industry is in crisis, costs are going down," Gupta added. The company warned it will take tough calls in states where structural profitability remains weak, indicating it could cut supplies, lower promotions or deprioritise markets altogether.
Despite the closure, UBL has assured that the closure of the Ludhiana brewery will not impact our business performance in the state. The company is "also committed to taking all necessary and responsible steps to support our employees and workmen through this transition," as stated in the regulatory filing. This commitment to employee welfare demonstrates the company's approach to managing the transition while maintaining its operational presence in the Punjab market through alternative arrangements.
