India: Carlsberg considers acquisitions in India, in particular the Himneel Breweries

Carlsberg is looking for new markets in Asia. According to the news agency Direkt Carlsberg is watching the Indian market and in particular the Indian brewery Himneel Breweries, Borsen released October 09.

Indian Economic Times wrote that it is possible for Carlsberg to buy the Indian brewery for about DKK 45 million, but Carlsberg’s spokesman Jens Peter Skaarup will not comment on the Indian acquisition rumours.

He confirmed, however, to the news agency Direkt that the market in India is very interesting, but that Carlsberg is still analyzing the market.

The interest for the Indian beer market is not totally new. Earlier this year the company examined the Indian beer consumption, share analyst Michael K. Rasmussen, Gudme Raaschou Bank, said.

“There is a potential in the market with an annual growth of 8-9 per cent until 2010. But there are already some big breweries on the Indian market, so Carlsberg will not be the first big beer producer on the Indian market,” Michael K. Rasmussen said.

He added, however, that an Indian acquisition will not affect the bottom line in the nearest future – and share analyst Casper Runge Albaek, Jyske Bank, agrees: “The beer market in India is still very young and immature with a long-term growth potential, but in the short term an acquisition in India will have no great effect.”

Casper Runge Albaek adds that Carlsberg will only be successful if the breweries manage to persuade the Indians that they should drink more beer than they do today.

11 October, 2006