SABMiller announces further
strategic investment in India
14 June 2005
Delhi: SABMiller plc (March 2005 turnover: $14,543 million with a pre-tax
profit $2,194 million) has planned to increase its investments in India,
which it has identified as a strategic growth. The global brewing company's
Indian subsidiaries will invest over $125 million in capital expenditure
and marketing initiatives over five years.
had recently announced that its Indian subsidiary, MBL Investments had acquired
the Shaw Wallace group's residual interest in the brewing operations of
SABMiller's Indian joint-venture. The group's brewing operations comprise
10 breweries across the subcontinent making it India's second-largest brewer.
Its key brands include Hayward's 5000, the leading beer brand in the rapidly
growing strong beer segment; Royal Challenge Premium Lager, the second-largest
mild beer in the country; Knock-Out and the international premium brand
is widely known that India is a rapidly expanding economy and represents
an exciting growth opportunity for SABMiller," says Graham Mackay,
chief executive, SABMiller plc, We firmly believe that a vibrant beer business
will not only contribute significantly to the economic development of the
country, but a well regulated industry will encourage responsibility in
the consumption of alcohol throughout the subcontinent. This can only be
achieved, in our view, by working with the Indian authorities to reform
the prevailing structure and reduce the complexity of the restrictions that
are currently in place. "
Parker, managing director of SABMiller Africa & Asia, added, "Climatic
conditions in India are more suited to drinking beer, which is seen as a
healthier alternative, than other alcoholic beverages. While the Indian
beer market has been growing at 6 to 7 per cent annually, SABMiller's brewing
operations in the country have recorded a much higher growth rate of 12
per cent in the last year. With the further investment we are able to upgrade
and expand existing breweries, develop our brands and increase the standard
of the barley farming industry through co-operative initiatives."
during his current India visit will inaugurate the company's state-of-the-art
brewery in Hyderabad upgraded at an investment of $14-million.
stepped in to India 2000, when it bought Narang Breweries, located near
Lucknow, Uttar Pradesh. In June 2001, it acquired a controlling interest
in Mysore Breweries Limited. Subsequently Mysore Breweries Limited has made
in brewing operations and in May 2003, entered into a strategic 50:50 joint
venture with Shaw Wallace.
outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola
products in the world.
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