The Hindu Business Line : Cobra Beer plans expansion, tie-ups

THE UK-based Cobra Beer on Friday said it is planning tie-ups with two breweries and would invest $4-5 million towards expanding its operations in India over the next few years.

The company also said it was mulling a greenfield project in Andhra Pradesh, which could require an additional investment of $10 million.

"We are in talks with two breweries in the South to commence manufacturing of our products there. Further, we are in the process of upgrading Mt Shivalik's brewery in Punjab at a cost of $1 million; our beer would soon be produced at the unit," Mr Karan Bilimoria, Founder and Chief Executive of Cobra Beer, said.

The decision on further large scale expansion (which could include acquisitions) will, however, depend on what volumes the company's brand is able to generate over the next three years, Mr Bilimoria said at the launch of the company's super premium Cobra beer, priced at Rs 50 for a 650-ml bottle and Rs 30 for 330 ml.

Cobra Beer, along with Mount Shivalik, has invested $1 million in the latter's Rajasthan brewery, and will further upgrade Mt Shivalik's facilities in Punjab and Maharashtra to meet its quality standards.

Initially, the company expects its `Made-in-India' Cobra Beer to generate annual sales of one million cases for three years. From next month, Cobra beer will be made available in Delhi, Maharashtra, Karnataka, Andhra Pradesh, West Bengal and Rajasthan, he said, adding that by June-end, Cobra Beer will hit markets in Uttar Pradesh, Goa, Pune and Kerala.

The company, which will launch a non-alcohol malt beverage soon, will kick off a series of marketing and advertising campaigns. It will also launch a couple of products over the next four to five months, which could include a stronger beer.

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