SABMiller acquires Foster's India

Our Corporate Bureau
04 August 2006

Mumbai: Leading brewer SABMiller plc today announced that it has entered into an agreement to acquire a 100-per cent interest in Foster's India for $120 million on a cash-free debt-free basis, subject to certain conditions being fulfilled. Under the terms of the agreement, SABMiller will assume ownership of all Foster''s assets in India including the Foster''s brand in the territory.

Foster's Group is a leading global drinks company, with a portfolio of wine, beer, spirits, ready-to-drinks, ciders, and non-alcohol brands. Based in Melbourne, Australia with an approximate` market capitalisation of $8 billion and annual revenues of $4 billion annually,

SABMiller plc is one of the world's largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. Outside the US, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world. For the year ended 31 March 2006, the group reported $2,626 million adjusted pre-tax profit and a turnover of $15,307 million.

Foster's India currently operates one brewery based in Aurangabad in the state of Maharashtra with a licenced annual capacity of 350,000 hectolitres. The company produces, distributes and supports Foster''s Lager, Amberro Mild and Amberro Strong beer brands in the Indian market. In the year ended 30 June 2006, total beer sales were 236,000 hectolitres (2005: 209,000 hl) with Foster''s Lager representing 88 per cent of total production and sales (2005: 85 per cent).

India is the third largest market for the Foster's brand globally and it has achieved a CAGR of 13 per cent since operations commenced in 1998. It has a presence in 19 Indian states and has a substantial share of the mild beer segment in the strategic state of Maharashtra.

SABMiller India will look to extend Foster's Lager nationally through its network of 10 breweries and seek significant cost benefits from brewing and distributing the brand locally. The Aurangabad brewery will also provide additional capacity for SABMiller''s presence in Maharashtra as well as a platform for access to the Mumbai market.