Molson Coors invests Rs156.76 crore in new JV with Cobra India
24 June 2011
Canadian American beer giant, Molson Coors Brewing Company, has formed a new joint venture with Lord Karan Bilimoria-run Cobra Beer's Indian arm to brew and market Cobra beer in the South Asian market.
The Montreal and Denver-based brewer will invest $35 million (Rs156.76 crore) to take a controlling 51-per cent stake in the joint venture named Molson Coors Cobra India, while Cobra's founder Bilimoria will hold the remaining 49 per cent.
The investment is for working capital requirements and expanding Cobra's brewery in Bihar.
Under the terms of the deal, Molson Coors Cobra India, which is to be headquartered in Mumbai, will market Cobra beer brands that include Cobra Premium, King Cobra Superior and Iceberg 9000 in South Asia including India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.
The deal also includes Cobra's 175,000 hectolitre brewery in Bihar that can be expanded to 500,000 hectolitres.
The joint venture will be headed by Bilimoria, chairman of the Cobra Beer Partnership Ltd, while the operations will be controlled by Molson Coors.