Kingfisher beer maker UB suspends supply to Telangana; association alleges state pays 47% less than other states
Live MintBSE-listed United Breweries Ltd, maker of popular brands like Kingfisher, on Wednesday, announced the immediate suspension of beer supplies to Telangana Beverages Corporation Ltd due to significant and ongoing operating losses in the state. The company in its BSE filings said it had decided to suspend the supply of its beer to Telangana Beverages Corporation with immediate effect as the corporation had not revised the basic price of the company’s beer since FY20, resulting in ‘escalating losses’ in the state and significant overdues remaining unpaid by them for the past supply of beer by the company. 'Just ₹ 290-315 per case in Telangana' The letter said Telangana offers nearly 47% lower prices per case to beer makers, anything between ₹290-315 per case as compared to states like Karnataka and Maharashtra. Analyst Abneesh Roy, executive director at institutional brokerage Nuvama Institutional Equities, said that the company is likely experiencing negligible profits from Telangana, as the company has not raised prices in the state for the last four years, despite rising inflation in materials like glass and barley, alongside increasing staff costs.
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