16 September, 2005

India: United Breweries plans to increase its brewing capacity over the next year

United Breweries, which controls 50% of Indian beer market, is planning to up its brewing capacity by 18.2% to 65 million over the next one year. Currently UB has a total brewing capacity of 55 million cases.

UB is currently working out funding options and seeking to rely more on owned capacities, Business Standard news agency commnted on September 15. Kalyan Ganguly, president, breweries division, UB Group said: “The Indian beer market is on an upswing and the market should be in the range of 100 million cases by end of this year from the 92 million cases during 2004-05. We need to build up capacities for this growth and are open to organic and inorganic routes for this expansion.” He added that funding is not an issue for this expansion.

UB currently enjoys a 50% market share, while SAB Miller after the recent consolidations has around 32 per cent.

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