UBL Eyes Rs 350 cr Capex in 2023 to Meet Expected Volume Growth
UBL Eyes Rs 350 cr Capex in 2023 to Meet Expected Volume Growth

Beer maker United Breweries Ltd, controlled by Dutch multinational brewing company Heineken, plans to infuse around Rs 350 crore as capital expenditure in 2023 to meet the expected volume growth in the country. The company has "good capex plans" in place for its breweries to meet anticipated volume growth going into 2023, said Radovan Sikorsky, Chief Financial Officer, United Breweries.

"We remain optimistic on the long-term growth of the industry," he said adding the evolving consumer trends will drive premiumization.

CFO commented on the Capex plan, he said, "For the coming January to December the capex spend we are looking at somewhere in the region of Rs 350 crore."

Moreover, the leading beer maker expects inflationary pressure to continue and it would pursue price increases, in combination with cost measures to mitigate these cost impacts.

"Inflation pressure on the cost of goods sold will most likely continue in the foreseeable future and hence we will continue to pursue with further price increases to strengthen our earning, in combination with cost measures to mitigate these cost impacts," he said.

However, he also said there seems to be some softening on some of these components, but going forward it is still too early to comment on that.

"I still think that pressures on margins will remain and it is a little dependent on our ability to increase prices and also manage our cost to try and mitigate any of that," Sikorsky added.

Over the outlook, Sikorsky said, "If we look at the trend going forward, we continue to be positive about the category penetration while at the same time driving shares in our premium portfolio and that is key for us."

UBL sees an "appetite for premium products" also in India and wants to be strong in that segment as the leader. During the July-September quarter, UBL's premium segment grew 48 percent, ahead of the total portfolio growing at around 23 percent, he said.

Kingfisher remains the "bread and butter" as an "extremely important brand" for UBL.

"When we look going forward we will continue doing strong activities around the Kingfisher brand," Sikorsky added.

UBL has reported a 66.94 percent growth in its consolidated net profit at Rs 134.12 crore in the second quarter that ended September 30, mainly on the back of volume growth. Its revenue from operations was up 11.49 percent to Rs 3,673.51 crore during the quarter.

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Retail India News: Welspun Living Joins Bharat Tex 2024 to Champion India's Textile Legacy
Retail India News: Welspun Living Joins Bharat Tex 2024 to Champion India's Textile Legacy

Welspun Living Ltd is set to take part in Bharat Tex 2024, a national textile exhibition in New Delhi from February 26 to 29, 2024. This event symbolizes India's standing in the global textile domain, and Welspun Living Ltd. is honored to be part of this significant initiative.

Founded in 1985 by Balkrishna Goenka, Welspun started as Welspun Winilon Silk Mills in Palghar, Maharashtra, and has grown into a global leader in home textiles over 35 years. The company transformed into Welspun Living Limited in 2023, known for innovation, branding, and sustainability. Welspun Living is the largest exporter of textiles to the US, reflecting its commitment to excellence and stakeholders. Guided by core principles, Welspun continues to lead in the textile industry, upholding its legacy amid the challenges of a dynamic global market.

Under the theme "Make in India, for the World," the company aims to exhibit its dedication to quality, innovation, and sustainability. Rooted in the ethos of Make in India for the World, its products fuse global trends with craftsmanship, meeting diverse consumer preferences worldwide. With a focus on dynamic trends in home textiles, Welspun Living uses consumer insights to drive innovation and maintain a leading position.

Bharat Tex 2024, featuring a wide array of textile products, will facilitate networking opportunities and spur growth in the global textile market. Welspun Living's participation will highlight its role in revitalizing India's textile value chain and supporting the Government of India's 5F vision (Farm to Fibre to Factory to Fashion to Foreign). The company aims to underscore India's rich textile legacy and its vision for a sustainable, innovative future globally.

Looking ahead, Welspun Living is committed to expanding its global footprint while reinforcing sustainability and societal impact. Planned trajectories include strategic investments in technology, research, and partnerships to drive growth across the value chain. As the textile sector evolves, Welspun Living remains dedicated to excellence, guided by a vision to create value for all stakeholders.

Dipali Goenka, CEO and MD of Welspun Living Limited stated, “At Welspun Living, our approach to 'Make in India, for the World' underscores the immense potential of India's manufacturing prowess. Through the integration of Industry 4.0 and AI, we are pioneering India's high capability standards globally. With our participation in Bharat Tex 2024, we aim to showcase our thought leadership on sustainability practices. Governance is critical, playing a significant role in catapulting the demand for Indian-made products globally. India is increasingly becoming a preferred global supply chain partner, and with technologies like predictive Analytics powered by AI, Blockchain, the Internet Of Things, and Data Analytics, it is imperative that we stay ahead of the curve and let Indian Textile become a giant in the world-industry.

Bharat Tex 2024 is expected to be a dynamic platform, bringing together industry leaders, policymakers, and stakeholders worldwide. Welspun Living looks forward to participating in insightful discussions, forming meaningful partnerships, and presenting its latest textile innovations at the event.


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