New Delhi, Feb. 20 -- United Breweries Ltd, the Indian subsidiary of Dutch brewer Heineken NV, has been leaning on its premium products, expansion, and favourable regulations to drive growth, braving persistent margin and pricing challenges.

A significant catalyst for UB Group was when the Uttar Pradesh government revised its excise policy to allow so-called composite liquor shops to operate, selling both beer and Indian-made foreign liquor (IMFL) from the same space. That in effect expanded the Kingfisher maker's beer stores to about 11,000 outlets from 6,000-a potential game-changer in one of India's largest consumer markets.

United Breweries has also been scaling up its premium brands Heineken and Amstel Grande. In the December quart...