Carlsberg Enters Joint Venture in India

The potential for growth in the Indian beer market is significant. The annual beer consumption per capita is among the lowest in Asia, at only about 0.7 litres per year, and the annual GDP growth rate is more than 9%.

07/12/06 Carlsberg has entered into a joint venture in India with the aim of building a green field brewery in the state of Rajasthan. The name of the joint venture is South Asia Breweries Ltd.

The potential for growth in the Indian beer market is significant. The annual beer consumption per capita is among the lowest in Asia, at only about 0.7 litres per year, and the annual GDP growth rate is more than 9%. The total beer market in India is approximately 8 million hl; however, it is currently among the top 3 markets in Asia in terms of expected growth rates. The total beer consumption in 2005 in the state of Rajasthan and the 3 neighbouring states of Delhi, Haryana, and Uttar Pradesh was 1.7 million hl with a population base of 250 million.

The brewery will have a capacity of 450,000 hl and will be operational in Q1 2008.

Carlsberg will hold 45% of the shares, Industrialisation Fund for Developing Countries ("IFU") will hold 10%, and the remaining 45% will be owned by a group of investors, lead by Carlsberg's partner in Sri Lanka, The Lion Brewery Ceylon Ltd. The main office of the joint venture will be in the national capital Delhi.

The site for the project is in the industrial estate established by Rajasthan State Industrial Development and Investment Corporation Ltd." (RIICO) in the Alwar district, which is located 150 km south-west of the national capital Delhi.

The parties have agreed not to disclose the expected total investment in the joint venture.