London: Lord Karan Bilimoria, the Indian-origin founder of Cobra Beer, plans to raise 4.5 million pound to expand in India five months after the British arm of the company went into a pre-pack administration owing creditors 70 million pounds.

Lord Bilimoria has hired Grant Thornton, the accountant, to work on a fund raising for the Indian business. He plans to use the fresh finance to complete the purchase of a brewery in India and to develop the brand, The Sunday Times reported today.

Lord Bilimoria said “it was absolutely vital” to raise the money.

He said the Indian beer market had enormous potential and he was “very confident” of being able to raise the funds.

Cobra’s Indian arm generated retail sales of about 5 million pounds in the year to March but delivered losses of 4 million pound. Turnover is forecast to grow beyond 20m pounds within four years, the report said.

The British arm, based in London, was put in administration in May and immediately bought out by a joint venture vehicle controlled by Bilimoria and Molson Coors, the international brewing giant.

Bilimoria has promised to repay millions owed to creditors of the British business who lost out as a result of the administration.