The company stated that TGBCL has given assurance to address issues on pricing and outstanding payments
After Telangana Beverages Corporation or TGBCL assured the United Breweries (UBL) to address the concerns around pricing and outstanding dues, UBL has resumed the beer supplies to TGBCL following constructive discussions with the latter.
“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,” the company said in a regulatory filing.
The company stated that it has restarted the supplies for the time being based on assurances, until it gets more information. It informed that the interim decision has been taken in the interest of consumers, workers and stakeholders and it continues to engage with TGBCL during this period.
On 8 January, the company confirmed the decision regarding the suspension of beer supplies. The decision was attributed to financial losses stemming from TGBCL’s failure to revise the basic price of beer since 2019-20 and significant overdue payments for past supplies. TGBCL, a government-owned monopoly in alcohol wholesale and retail vending in Telangana, was cited as a major contributor to the losses, United Breweries stated in a stock exchange filing.
The decision to resume the supplies is reflecting in the share prices of UBL, which have surged over 3.48 per cent to Rs 2,019.15 as of 11:31 AM on Monday.
