United Breweries Group (UB Group) has planned to invest Rs. 1000 crore in the coming three years, to increase its brewing capacity upto 71.50 lakh hecto litres per annum, from its current 60.25 lakh hecto litres.  

The expansion of brewing capacity by 20% will be funded by the recently concluded rights issue of Rs 425 crore and the remaining through combination of internal accruals and debts.

The current brewing capacity of UB Group is 60.25 lakh hecto litres per annum and to facilitate the expansion, it  will be setting up a plant in Andhra Pradesh with a production capacity of 60 lakh cases per annum to begin with.  

Another plant will be started in Karnataka with a capacity of 30 lakh cases a year.

According to the Chief Financial Officer of UB Group, Ravi Nedungadi, "This capacity expansion plan, started in April 2006, will cost around Rs 1000 crore over three years. UB Group also has a capital expenditure plan of Rs 488 crore for the current financial year."