United Breweries plans to invest in an effort to increase its beer production capacity, according to reports.

UB Group CFO Ravi Nedungadi was cited by Dow Jones yesterday (9 October), saying the company will spend INR10bn (US$254.3m) expanding its beer production capacity over the next three years.

Nedungadi reportedly said that UB will partly fund the expansion through a rights issue of INR4.25bn and that the company has already embarked on a capital expenditure programme of INR3.5bn:

"The beer business is growing at 17%-20% a year and there is great potential in India for this business to grow further," Nedungadi told reporters.

Nobody was available for immediate comment at UB Group when contacted by just-drinks today (10 October).