INDIA: SAB invests $10m in India beer venture
South African Breweries (SAB), three months after it was granted an approval to set up a holding company in India, is to invest a total of $10m in two Indian breweries, according to local Indian papers.SAB has already bought a sizeable equity in Delhi-based Narang Breweries for $1.8m. It now has plans to acquire a 65% stake in Mumbai-based Associated Breweries for over Rs360m ($8m).SAB is reported to be aiming to produce 1m hectolitres in India within seven years. Its growth strategy in the country will centre on acquiring poorly performing brewing facilities across the country and upgrading them into world class manufacturing outfits, according to Indian sources. This will be done with a view to making India a production base from which to sell into neighbouring Asian markets, the sources said.The company first applied permission to form a joint venture in India with Narang in February 1999. However, clearance was held up for almost a year because of the lack of a clear cut policy for admitting foreign investments into the liquor sector.The proposal was cleared only when SAB reworked it to form a holding company which would subsequently obtain clearance to make downstream investments.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 14 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- PepsiCo to consider more re-franchising - CEO
- Cleaning China's seedier side brings Remy balance
- Focus - SABMiller's Q1 Performance by Region
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Diageo's Captain Morgan Facebook ad banned
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Alcohol retailer group appoints new chairman