Asia Pacific Breweries to expand in India

Asia Pacific Breweries to expand in India

Mumbai: Asia Pacific Breweries Ltd, the Singapore-based joint venture between Dutch brewer Heineken NV and Singapore’s Fraser and Neave Ltd, is consolidating its position in India by setting up two new breweries and appointing a new chief executive for South Asian operations.

The firm’s Indian operations came under a cloud after Heineken, a majority stakeholder, inherited a 37.5% holding in rival United Breweries Ltd, India’s largest beer company, from Scottish and Newcastle Plc. (S&N) after a global buyout in January.

S&N had been a long-time partner in the Vijay Mallya-led United Breweries.

Asia Pacific, which sells global brands, Baron’s Strong Brew and Tiger, as well as local brand Cannon in India, operates the fully owned Asia Pacific Breweries (Aurangabad) Ltd in Maharashtra and another at Hyderabad in partnership with the Andhra Pradesh brewer C.K. Jaipuria.

Asia Pacific is now planning a third, new brewery in Goa, with a proposed annual brewing capacity of 350,000 cases, and another in an yet undecided location.

Asia Pacific is likely to re-launch Arlem beer in India and is looking at Himachal Pradesh as a possible brewery location.

Asia Pacific’s newly appointed South Asia chief executive officer and head of Indian operations, Aswin Deo, said the company plans to expand its brewing capacities to northern India as well as Goa. He declined to give details.