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UB group to invest Rs12 bn for more beer capacity

UB group to invest Rs12 bn for more beer capacity
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First Published: Fri, Aug 31 2007. 09 54 AM IST
Updated: Fri, Aug 31 2007. 09 54 AM IST
Reuters
Mumbai: India’s top beer maker United Breweries Ltd will spend about Rs12 billion over a period of three years to expand capacity, according to a senior company official.
President Kalyan Ganguly said that United Breweries, which has more than half the fast-expanding Indian market, expects beer consumption to grow in excess of 20% per annum. “We are expanding capacity in anticipation of buoyant growth,” he said at the sidelines of a conference.
“Some of these will be greenfields while the rest will be to expand capacity in existing breweries,” he informed.
United Breweries, which has a joint venture with Scottish & Newcastle Plc has a capacity now to roll out 120 million cases of beer annually.
Consumption of beer per person in India, where production, sale and advertising of alcoholic drinks is tightly regulated, is just 1 litre, compared to an estimated 24 litres in China.
But that could change with new launches and easing regulations in some states, Ganguly said.
UB has an arrangement with northern Punjab state for exclusive brands, where consumption has jumped, he said. Similar initiatives in other states are expected in the coming months.
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First Published: Fri, Aug 31 2007. 09 54 AM IST