Carlsberg Seeks Acquisitions and Joint Ventures for Growth in Asia

10/10/07 Danish brewing giant Carlsberg, which has launched its beer brand in India, has said that it is looking for acquisitions and joint ventures for further growth in Asia. The company which recently entered into a joint venture with South Asia Breweries has acquired a brewery in the state of Himachal Pradesh, north of the Indian capital of New Delhi. Financial details were not disclosed. The portfolio at the brewery will include a number of brands from the Carlsberg group.

Jorn Jensen, CFO of the company, said: "Yes, we are going to grow in Asia organically and by acquiring. We are constantly looking at our options for acquisitions, joint ventures." Carlsberg plans to start two more greenfield units with an annual capacity of 500,000 hectoliters. The company said that it expects the annual beer consumption in India to grow by more than 140% by 2010. "India is a market of huge strategic importance and we are committed to continue investing in this country," Jensen added.

Jesper Madsen, senior vice president of Carlsberg Asia, said "We believe growth in the future will come from Asia." The potential for growth in the Indian beer market is significant, as annual beer consumption per capita is among the lowest in Asia, at 0.7 liters per year. Although consumption remains low, India is currently among the top 3 markets in Asia in terms of expected growth rates.

South Asia Breweries was established in November 2006. Carlsberg holds a 45% stake in the company, Industrialization Fund for Developing Countries holds 10%, and the remaining 45% is owned by a group of investors led by Carlsberg's partner in Sri Lanka, The Lion Brewery Ceylon.