United Breweries Shuts Ludhiana Brewery; Contract Brewing Lease Ensures Punjab Supply

United Breweries Limited has announced the closure of its brewery unit located at C/60, Focal Point, Ludhiana – 141010, Punjab, effective June 30, 2026. The decision was disclosed to stock exchanges on May 18, 2026, in the interest of transparency, and was also intimated to the Excise department of Punjab on the same date.

Long-Term Contract Brewing Arrangement Secured

In conjunction with the closure, the company has entered into a long-term capacity lease agreement with a Contract Brewing Unit to ensure continued and uninterrupted supply of its beer products across Punjab and neighbouring states, including Delhi. The company stated that this long-term lease will play a pivotal role in meeting future demand efficiently and sustainably through enhanced operations within the State of Punjab.

Key details of the closure and transition arrangement are outlined below:

Parameter:	Details
Unit Location:	C/60, Focal Point, Ludhiana – 141010, Punjab
Effective Closure Date:	June 30, 2026
Replacement Arrangement:	Long-term capacity lease with a Contract Brewing Unit
States Covered:	Punjab and neighbouring states, including Delhi
Excise Intimation Date:	May 18, 2026

Business Impact and Employee Commitments

United Breweries stated that the closure of the Ludhiana Brewery will not impact its business performance in the State of Punjab. The company reaffirmed its commitment to the state, its communities, and consumers, adding that it is committed to taking all necessary and responsible steps to support its employees and workmen through this transition.

The disclosure was signed by Nikhil Malpani, Company Secretary & Compliance Officer of United Breweries Limited, and filed with both BSE Limited and the National Stock Exchange of India Ltd on May 18, 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.19%	-5.33%	-12.23%	-23.84%	-35.25%	+2.79%

United Breweries has received a favourable order from the Maharashtra Sales Tax Tribunal, Mumbai, in a tax litigation matter, with the demand against the company reduced to NIL. The order was passed by Bench-III of the Maharashtra Sales Tax Tribunal, Mumbai-VAT, and received on May 11, 2026. The company disclosed this development to the stock exchanges on May 12, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Tax Dispute

The litigation originated from an assessment order under the Central Sales Tax Act passed by the Deputy Commissioner of Sales Tax, Mumbai, on March 31, 2023, raising a demand of ₹275 Crores for Financial Year 2018-2019. The company subsequently challenged this order, initiating a multi-stage appellate process that has now concluded in its favour.

The progression of the dispute through the appellate process is summarised below:

Stage:	Details
Original Demand:	₹275 Crores raised by Deputy Commissioner of Sales Tax, Mumbai (March 31, 2023) for FY 2018-2019
First Appeal Outcome:	Demand reduced to ₹7 Crores by Joint Commissioner (Appeals) on March 28, 2024
Second Appeal Outcome:	Demand reduced to NIL by Maharashtra Sales Tax Tribunal, Bench-III, Mumbai-VAT (order received May 11, 2026)

Financial Implications

Following the tribunal's order, the expected financial implications are NIL. The outcome results in a reduction in contingent liability for the company, as the demand that had been carried as a contingent liability has now been extinguished. No compensation or penalty is payable as a result of this development.

Regulatory Disclosure

The disclosure was made in furtherance to an intimation filed on April 05, 2024, and is in compliance with Regulation 30 read with Para B(8) of Part A of Schedule III of the SEBI Listing Regulations. The filing was also made in accordance with SEBI Master Circular dated January 30, 2026, and SEBI Circular dated February 25, 2025. The disclosure was signed by Nikhil Malpani, Company Secretary & Compliance Officer of United Breweries, on May 12, 2026.