United Breweries Ltd

- United Breweries is investing in a greenfield brewery in Uttar Pradesh, their first greenfield investment in 12 years, with the brewery expected to be operational by FY 2027. - The UP investment is close to EUR 82 million, aimed at meeting future capacity needs and capitalizing on growth potential due to urbanization and favorable policies. - Capex plans are flexible and state-specific, with some investments in expansion via contract manufacturing and greenfield facilities. - Overall, capex will be significantly higher than in recent years, although exact numbers for FY 2026 and FY 2027 remain undisclosed due to variability. - Continuous investments are being made to upgrade brewery technology, warehouse capacity, and trade marketing infrastructure to support peak season demands. - Ongoing productivity programs are expected to deliver annual gross savings of around INR 50 crores starting 2025, supporting sustainable growth.

Future growth expectations for United Breweries Limited based on the document: - Volume growth guidance: Targeting 6% to 8% minimum volume growth for the next fiscal year, with a focus on sustainably building the category. - Q3 volume growth was 8%, outperforming the estimated category growth of 7%, indicating potential market share gains. - Premium segment volumes grew 33%, driven by Kingfisher Ultra, Kingfisher Ultra Max, and new launches like Amstel Grande. - Revenue growth driven by price increases, premiumization mix, and expanded availability through investments such as Visi coolers and store expansion. - Capex plans are focused on growth, with significant investment in a new greenfield brewery in Uttar Pradesh to support increasing demand. - Growth influenced by policy changes; positive policies (e.g., store doubling in UP) are expected to boost availability and consumption. - Long-term view with continuous investments in brand building, brewery capacity, and category growth initiatives.

- Volume growth expected around 6-8% annually, with the goal to be ahead of the market. - Continued premiumization to improve revenue mix and long-term gross margins. - EBIT margins challenged short-term due to ongoing investments and recent price/duty increases; gradual margin improvement anticipated. - Telangana price increases improve top-line margins but will be reinvested for growth, limiting immediate EBIT margin expansion. - Capex expected to be substantially higher than previous years, including a major greenfield brewery investment in Uttar Pradesh to support future growth. - Productivity programs initiated to achieve gross savings (~INR 50 crores annually starting 2025) to improve efficiency and competitiveness. - Potential volatility due to state-level policy changes and excise duty increases may impact short-term earnings. - Overall, management is confident in sustainable, long-term profitable growth but acknowledges near-term uncertainties and hard work ahead.

The transcript provided from the United Breweries Limited Q3 FY '25 Conference Call does not explicitly mention the current or expected order book or pending orders. However, some related points on investments and capacity expansion are noted: - A major investment approved for a greenfield brewery in Uttar Pradesh to expand capacity. - Capex plans are described as fluctuating due to policy changes, with investments ongoing to drive growth and improve technology. - Discussions on brewery capacity include using a hybrid model: greenfield projects and partnerships with contract manufacturers. - Visi cooler addition (10,000 in 2024) indicates efforts to improve availability and market penetration. - No specific figures or order book numbers have been shared; the company prefers to keep capex as a strategic plan without disclosing exact numbers. Hence, no concrete data on orderbook or pending orders is disclosed in the document.

- No explicit mention of any current or planned fundraising through debt or equity in the provided transcript. - The company is focused on investing in growth, including a major greenfield brewery in Uttar Pradesh. - Capex plans are described as flexible and variable, with no fixed numbers shared for 2026 and 2027. - Vivek Gupta mentions that capex will be a "very healthy number" but refrains from quantifying or committing to external financing methods. - There's discussion of optimizing internal productivity programs and cost management rather than raising new capital. - Overall, the company appears to be funding expansion and upgrades primarily through internal resources without announcing new debt or equity issuances at this time.