India: Breweries battle for the control in Indian beer market

It's head to head between Vijay Mallya's UB group and the world's second largest brewer SABMiller for controling of the Rs 700 crore Indian beer market, according to the Indian Financial Express as of October 12.

In a bid to strenghten its position in the Rs 700 crore domestic beer market, SABMiller India, a 100% subsidiary of South Africa based SABMiller Plc, the world's second largest brewer, is planning to acquire two regional beer brands.

United Breweries is the leader in this market with a market share of 50% through its Kingfisher brand.

The holder of a 35% market share, SABMiller India enjoys the second position in the Indian beer market with brands like Haywards 5000, Knock Out, Castle and Royal Challenge Premium Lager. SABMiller acquired most of these brands after it took majority control of Shaw Wallace Breweries two years back.

Mohan Meakin and Chowgule together have 15% market share of the Indian beer industry. If SABMiller manages to acquire them, its share will grow to 50%--as much as UB's--in the Indian market.

Richard Rushton, SABMiller India's managing director, told FE, "We are looking at opportunities, both for acquiring brands as well as manufacturing facilities. It can also be strategic partnerships. We are open to acquiring smaller regional breweries in India as part of the growth strategy." He, however, did not give details of the acquisition. .

But Vijay Mallya, Chairman, UB Group seemed unfazed by SABMiller's moves. "We do not see competition. Kingfisher has been the undisputed market leader for so many years."

"India has the economic potential to be a leading global beer market and we are well placed to benefit from this growth. However, our focus would be on promoting our existing brands. We will target over 50% of the incremental growth in the Indian beer industry in the coming years," adds Mr Rushton.