Weeks after the ‘Kingfisher’ beer manufacturer, United Breweries had halted the supply of beer to Telangana, the company, on Monday, announced that it has decided to resume the supply with immediate effect. United Breweries said that the decision was made following ‘constructive discussions’ with Telangana Beverages Corporation Limited (TGBCL) and the government’s assurance to address the issues on pricing and outstanding payments.
In a regulatory filing, United Breweries said, “We wish to inform that the Company has decided to resume the supply of its beer to Telangana Beverages Corporation Limited (TGBCL) with immediate effect. We have been in talks with TGBCL, and these have been constructive discussions. TGBCL has assured us to address our issues on pricing and outstanding payments in a time bound manner.”
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The company said that the decision is ‘interim’ and the discussions with TGBCL will continue during the period. “Until we get more information, basis assurances, we have decided to restart our supplies to TGBCL for the time being. This is an interim decision in the interest of consumers, workers and stakeholders. We will continue to engage with TGBCL during this period,” it added
Earlier this month, the Heineken and Kingfisher-maker had suspended the supply of beer to TGBCL because the state had not revised the basic price of its beer since 2019-2020, resulting in huge losses for the company. United Breweries had also mentioned significant overdues that remain unpaid by TGBCL for the past supply of beer by the company. In a statement, a company spokesperson had said, “We have decided to immediately suspend supplies to TGBCL due to significant and ongoing operating losses in Telangana. Despite our continuous efforts over the past two years, there has been no increase in the base prices offered for our products. This has resulted in escalating losses, making our operations in the State unviable.”
Later, Telangana’s excise commissioner had told CNBC-TV18 that there was no dues pending to the beer industry since September 2024 and that they have been following a 45-day cycle for releasing the payment.
A public sector company owned by the government of Telangana, TGBCL has a monopoly over wholesale and retail vending of alcohol in the state.
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