The Hindu Business Line : SABMiller brews $125-m fresh investments in India

GLOBAL beer giant SABMiller Plc has announced fresh investments of $125 million in capital expenditure and marketing initiatives over five years to expand operations and support market leading brands in the country.

The brewer unveiled these plans as its Chief Executive, Mr Graham Mackay, embarked on his second visit to India.

SABMiller, through its local subsidiary, MBL Investments, acquired the Shaw Wallace & Co's residual interest in the domestic brewing joint venture.

SABMiller has 10 breweries across the sub-continent. Its key brands include Hayward's 5000, Royal Challenge Premium Lager, Knock-Out and the international premium brand Castle Lager.

SABMiller has a 35-per cent share in the Indian beer market, at 88 to 89 million cases annually, making it the second largest domestic brewer after United Breweries Ltd.

Mr Mackay said, "India is a rapidly expanding economy and represents an exciting growth opportunity for SABMiller. We believe a vibrant beer business will not only contribute significantly to the economic development of the country, but a well regulated industry will also encourage responsibility in consumption of alcohol throughout the sub-continent. This can only be achieved by working with the Indian authorities to reform the prevailing structure and reduce the complexity of the restrictions that are currently in place."

During a visit to the country this week, Mr Mackay will meet Government officials and industry leaders to discuss SABMiller's involvement in India. He will also inaugurate the $14-million upgrade programme at Charminar Brewery in Hyderabad and visit local communities.

SABMiller is the largest multinational in the Indian brewing industry and has invested close to $400 million towards acquiring assets over the last five years.

The only other global brewer present in the country is UK's Scottish & Newcastle, which is an equal equity holder in United Breweries, managed by Mr Vijay Mallya.

Asia-Pacific Breweries, the Asian arm of Heineken, InBev and Carlsberg have evinced early interest in the Indian beer market, which is considered to be the world's last potential big beer market.

According to SABMiller, the key growth drivers in the country include rising gross domestic product, favourable demographics, changing lifestyles, the opportunity to increase per capita consumption (which is now at an abysmal 0.7 litre) and a potential deregulation of the Indian beer industry.

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SABMiller brews $125-m fresh investments in India