SABMiller has prepared an INR5.6bn (US$122.7m) war chest for acquisitions in the beer market and expansion of its existing capacity. The company is looking to buy a brewery in the state of Tamil Nadu, South India.

The brewer does not currently have a brewery in Tamil Nadu, while the state's 'no imports allowed' law prohibits the shuttling of beer from its breweries in the neighbouring states of Kerala, Andhra Pradesh and Karnataka.

The frontrunner for acquisition is Mohan Meakins brewery, which is up for sale, although SABMiller has not yet reached a final agreement with the family-owned company.

Richard Rushton, the managing director of SABMiller India stated that the company is looking forward to expanding its market share in India and is open to various opportunities in the market.

The acquisition of Mohan Meakins at the national level would effectively make SABMiller the leader in the Indian beer market. While SABMiller has around 37% market share in the beer segment, United Breweries has around 40% and Mohan Meakin has around 8%.