INDIA: SAB invests $10m in India beer venture

By Chris Brook-Carter | 11 July 2000

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.

just-drinks articles are only available to registered users and members.

Join now for increased access

There are various access options to choose from. All provide instant access to the latest news, insight and expert analysis.

If you’re already a member, login here.

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.

  • Unlimited access to all the latest global beverage news and insight
  • Expert analysis that puts the news into context
  • Exclusive interviews with leading industry figures
  • Monthly management briefings with detailed analysis on hot topics
  • Personalised RSS feeds and email newsletters
  • 10-year archive of news, insight and intelligence
  • Discounts on just-drinks market research
  • Plus much more

If you’re already a member, login here

Not what you were looking for?

Search just-drinks:

More articles related to this one

ITALY: The ultimate sports drink, revealed
The hunt for the ultimate sports drink may be at an end.

S AFRICA: SAB defends redundancy settlement
South African Breweries has defended a controversial redundancy package covering a group of former workers who claimed the deal was signed without their approval.

S AFRICA: Ex-SAB workers slam redundancy deal
Former workers at South African Breweries have slammed the country's Food and Allied Workers Union for agreeing to redundancy package without their approval.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page