SABMiller plans further strategic investment in India

15/06/05 Brwer SABMiller plc has announced its intention to invest further in India which it has identified as a strategic growth market for the Group. The global brewing company’s Indian subsidiaries intend to commit in excess of $125 million in capital expenditure and marketing initiatives over five years to expand current operations and further develop market-leading brands in India.

SABMiller recently announced that its Indian subsidiary, MBL Investments, acquired the Shaw Wallace Group’s residual interest in the brewing operations of SABMiller’s Indian joint-venture. The Group’s brewing operations comprise 10 breweries across the subcontinent constituting India’s second largest brewer. Its key brands include Hayward’s 5000, the leading beer brand in the rapidly-growing strong beer segment; Royal Challenge Premium Lager, the second-largest mild beer in the country; Knock-Out and the international premium brand Castle Lager.

SABMiller has operated in India since October 2000, when it bought the Narang Breweries, located near Lucknow , in the state of Uttar Pradesh. In June 2001, SABMiller acquired a controlling interest in Mysore Breweries Limited. Subsequently Mysore Breweries Limited has made other acquisitions in other brewing operations in India and later in May 2003, Mysore Breweries Limited entered into a strategic 50:50 joint venture with the Shaw Wallace Group of India.