United Breweries Ltd. is considering closing one of its Indian units. In a statement to the Bombay Stock Exchange, the Indian company said that the economic size of its unit in Cherthala in the state of Kerala is the main reason for the proposed closure.

The unit contributes between 3% and 5% of United Breweries' total production.

The company is currently negotiating the closure with the Government and labour unions.

"In case the plant is closed down, the company would either utilise the brewing capacity available with other breweries in the same area or increase production at other breweries," United Breweries said.