United Breweries, Soufflet Malt partner to set up 1.1 lakh tonne capacity malthouse; key details

United Breweries Ltd (UBL) and global malting major Soufflet Malt have partnered to build a cutting-edge malthouse in Rajasthan, aiming to fortify the local brewing ecosystem and ensure a steady supply of premium malt.

At 11:19 am, UBL shares were trading 0.57 per cent higher at Rs 1615.50 on BSE against their previous close of Rs 1606.35 apiece.

Slated for commissioning in early 2028, the state-of-the-art facility would kick off with an annual malt production capacity of 110,000 tonnes, the company noted in its exchange filing on Friday.

They have plans to double this output during the project’s second phase. This raw material boost is specifically designed to feed the brewing lines for UBL’s iconic brands like Kingfisher and Heineken, the company said.

“As a category maker, we are committed to the long-term growth of beer in India,” said Vivek Gupta, MD & CEO of United Breweries Limited. He said that the partnership will strengthen the company’s backward integration and secure a consistent supply of high-quality malt to prepare for the next phase of category growth.

Jorge Solis, CEO of Soufflet Malt, highlighted that building their second malthouse in India aligns perfectly with their MALTiply 2030 strategy. “For us, today is much more than business growth; it’s about two industry leaders coming together to deliver the best and benefit our ecosystem: the agricultural community, our partners, suppliers and consumers,” Solis remarked.

The project is expected to generate 400 direct and indirect jobs, along with 700 positions across the broader supply chain, the filing said.

The investment would also empower and train over 50,000 Indian farmers, with a goal to source up to 250,000 tonnes of barley annually while championing sustainable farming practices, it added.

In an earlier note on UBL’s Q3 FY26 earnings review, brokerage firm JM Financial retained its “Add” recommendation on UBL shares, setting a revised target price of Rs 1,720.