The Hindu Business Line : Aurangabad has something to cheer about

Pune April 30 The global position that lies defined by latitude 19.888 N, longitude 75.32 E has something to cheer about, quite literally. With five beer-producing units, including those belonging to the country's market leaders, standing virtually cheek-by-jowl in the Waluj industrial area, this particular patch of territory could well be privy to some heady statistics.

Adding some effervescence to a town that is famed for its heritage — cave attractions Ajanta and Ellora and Moghul Emperor Aurangzeb's monumental legacy — is its emergence as the veritable beer capital of the country. According to estimates, between 30-35 per cent of the country's beer is made here, and with expansion plans already in place, the figure is poised to grow.

While beer-manufacturing units havebeen existing in the area for over a decade and a half, it was the coming of Australia's Foster's followed by India's beer baron Mr Vijay Mallya and then multinationals SABMiller and Asia Pacific Breweries (APB) to the region that is responsible for the most recent appellation.

In May 2004, Mr Mallya's United Breweries and its subsidiary McDowell Alcobev Pvt Ltd and Scottish & Newcastle, UK, bought 25 per cent stake each in Inertia Industries famed for its Sandpiper brand of beer.

Last May, global major Asia Pacific Breweries made its first foray into the Indian subcontinent. It bought out 76 per cent stake in Aurangabad Breweries Ltd in an $18-million deal, with a provision to increase its stake to 100 per cent by the end of 2008. And that is how Heineken beer got the `made in India' tag.

A scarce four months on, in September 2006, SABMiller bought out Foster's beer business in India for a cool $120 million. Along with its earlier acquisition of PALS Breweries, the company has slowly but surely consolidated its Indian business, and made some serious inroads into the country's beer market.

With four of the five breweries in Aurangabad belonging to big-ticket investors, little wonder then, that all eyes are now on Lilasons Industries Ltd, the lone `small-timer' in the game. A couple of months ago, local newspapers were rife with news that SABMiller was making yet another acquisition in it. Proprietors Lilas though, stoutly denied the suggestion. But the rumours refuse to die, and now it is APB that is seen in the impending role of the big fish.

The primary reasons that Aurangabad is emerging as the beer capital of the country says Mr Ashish Garde, secretary, Chamber of Marathwada Industries and Agriculture, is the Jaikwadi dam on the river Godavari. Not only is the main resource - water — available in plenty, it is also rich in mineral content and has a pH value that is close to neutral. Combined with the ease of logistics, it makes for the perfect recipe for beer-ing success.

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