 | E-Malt.com News article: 1113
The world’s second largest beer company, SABMiller Plc, is to capitalise on the growing Indian beer market. According to the company’s announcement made on May 21 2003, Mysore Breweries Ltd, a subsidiary of SABMiller based in India, has entered into a 50-50 joint venture company with India's second biggest brewing group, Shaw Wallace and Company Limited.
According to the deal, signed in Dubai, SABMiller invested US$132.8 million for its 50% stake in the venture, which is to trade as Shaw Wallace Breweries Ltd. The joint venture company is to hold all the brewing interests and licences of both Mysore and Shaw Wallace. The new company will have a national manufacturing base of 11 owned breweries and 11 contract ones, and a wide portfolio of brands, including Haywards, Royal Challenge, Castle Lager and Knockout.
"Shaw Wallace Breweries will be a powerful new force in Indian brewing. It brings together the local knowledge, brands and experience of our new partners with our best operating practices in a combination that will be considerably stronger than the sum of its parts," said SABMiller's CEO, Graham Mackay. "Mysore is now in a position to take advantage of the 11% per annum growth in the Indian beer market through the joint venture's leading positions in the key beer consuming states of India.”
Shaw Wallace is the second largest brewing group in India, after Vijay Mallya’s United Breweries and the Millennium Alcobev combine, in which multinational Scottish & Newcastle recently picked up a stake. Shaw Wallace has been producing beer in India since 1974. Its key brands include Haywards - the dominant brand in a fast growing strong beer segment - and Royal Challenge.
SABMiller has been on a buying spree in India since it first entered the market in October 2000 with the acquisition of Narang Breweries. In 2001, it acquired a controlling interest in Mysore Breweries and Pal Distilleries, and Rochees Breweries in Rajasthan. SABMiller has an 8 per cent share in the Indian beer market.
22 May, 2003
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