The Hindu Business Line : SABMiller to identify potential areas for barley cultivation

WITH a view to helping local farmers and sourcing quality raw material for its brewing from local areas, SABMiller India Ltd, a subsidiary of the UK-based SABMiller plc, has decided to identify potential areas to promote barley cultivation.

The company, a leading brewer and beer player in the country, will commission an internal panel in three months to prepare a report to assess the potential for growing barley in some States. It would also study how small and medium farmers could be reached.

The Telangana region in Andhra Pradesh could be one such area.

"We are a company based mostly on agricultural produce (barley and sugar). We would like to help local farmers in growing those crops," Mr Ashok Dhingra, Operations Director (South) of SABMiller India, said.

The study would also look into the areas such as increasing quality and productivity at various levels, Mr Sundeep Kumar, Director (Corporate Affairs), said.

"We engage in similar activity in other countries such as South Africa, Zambia and Uganda," Mr Dhingra said.

In India, the company would also engage an independent agency to assess the resulting economic benefits to the local farmers.

At present, the company sources its barley needs to the tune of 12,000 tonnes of barley malt (made from 15,000 tonnes of barley) from farmers in Haryana and Rajasthan.

The beer industry in the country as a whole consumed some 40,000 tonnes of malt annually.

"There is a huge potential for growing barley in Andhra Pradesh," he said, pointing out that it was one of the focus States.

On investments, he said the company would invest Rs 250 crore on upgradation in the next five years. In Charminar Brewery in Andhra Pradesh, the company would invest Rs 60 crore.

The company, which recorded a turnover of Rs 1,000 crore last year, hoped to cross the Rs 1,200-crore mark this year.

He said the beer market registered a declined by seven per cent in the April-June period in Andhra Pradesh due to the increase of sales tax on premium brands under the new policy. Karnataka clocked a growth of 37 per cent and Tamil Nadu 42 per cent during the period. A bottle of beer cost Rs 6 more in Andhra Pradesh than Karnataka.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
1 million t wheat import likely: USDA

SABMiller to identify potential areas for barley cultivation

Flora Expo at Delhi in Sept next year

Marginal fall in spot rubber prices

Tea exports dip in May; output up 8.6 m kg

Over 18 lakh kg tea on offer this week at Coonoor sale

World soya output seen steady

G-20 seeks meaningful results in farm talks