Hyderabad: The Telangana government has given the approval to Telangana Beverages Corporation Limited to increase the prices of beer by 15 per cent. The state government’s decision came after a request by the Brewers Association of India (BAI) and after United Breweries Limited stopped the supply.
Meanwhile, United Breweries shares traded in positive on February 12, 2025. The stock traded at Rs 2,061 per equity share at around 10 am. The counter has gained nearly 20 per cent in the last one year.
Telangana: A 15% Increase in Beer Prices
In January 2025, United Breweries Limited (UBL) announced that it decided to suspend the supply of its beer to Telangana Beverages Corporation with immediate effect. In its regulatory filing, UBL informed that the decision was taken after it incurred huge losses in the state due to the company not revising its beer prices since the year 2019-20. UBL also claimed that TGBCL owed huge dues for past beer supplies. However, United Breweries later resumed supplies in the state.
Welcoming the state government’s decision, BAI appealed to Telangana Chief Minister A Revanth Reddy to sort the pending issues within the beer industry. Meanwhile, reports claimed that the government has started releasing pending dues to UBL. Telangana contributes 15-20 per cent of UBL’s volume market share. UBL is a major player in the beer segment in the state.
Releasing a statement, BAI said that the increase in prices is less than the increase in cost of production or what the industry expects, but it is a welcome step as it send a signal that the government is cognizant of industry concerns over business profitability in the state and has lived up to its promise to consider them.
BAI Director General Vinod Giri mentioned that a market-driven system is the most efficient way to benefit all and we will continue to engage with the government to advocate this approach.
The Telangana government approved a 15 per cent beer price increase following a supply halt by United Breweries Limited (UBL) due to unrevised prices since 2019-20 and outstanding dues. This decision, welcomed by the Brewers Association of India (BAI), aims to address industry profitability concerns. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
