United Breweries India Ltd. (UB) has decided to demerge its Brewery SBU into a separate company called BrewCo. The move is in preparation of the partial (26% or more) divestment of the beer arm a 'strategic' partner.

The demerger/divestment is being recommended by UB's two advisers Deloitte Haskins and Sells and Infrastructure Leasing & Finance Co. It will be executed by Kotak Mahindra, a finance and mutual funds company.

Names being mentioned as possible strategic partners include Heineken, Carlsberg, South African Breweries, Interbrew, Anheuser Busch and Scottish & Newcastle.

The partner, it is hoped, will help BrewCo market its popular Kingfisher brand abroad, and also launch its own international brands through BrewCo in India.

With US$98m in sales, BrewCo has 40% share of the domestic Indian market. Its flagship Kingfisher sells 20m cases while other brands Sandpiper, London Pilsner and Philippine brand San Miguel sell 5.3m cases.