United Breweries is to acquire a brewery in south India from the GMR group for Rup570 million ($11.7 million), according to a statement made to the Bombay stock exchange.

The purchase forms part of the plans UB has made with UK-based brewer, Scottish & Newcastle, to explore additional production opportunities in India.

The acquisition of the brewery, which has a capacity of around 120,000 hls, means UB will become the largest brewer in the southern state of Andhra Pradesh, which boasts the second largest beer market in India.