Singapore: Asia Pacific Breweries may buy 60% in Jaipuria JV

Asia Pacific Breweries (APB), the Singapore unit of Heineken, is to hold a 60% stake in its Indian JV with the CK Jaipuria Group, according to the sources.

The JV, in which the Jaipurias will hold the remaining 40%, is expected to move the FIPB once they strike a buyout agreement with a local brewery with a central industrial licence to facilitate FDI. CK Jaipuria and APB officials in Singapore refused to comment on the JV. ET was the first to report (on August 18) about APB mulling alliance with the Jaipurias to foray into the domestic beer market, The Economic Times commented on December 3.

The JV may have a shared management. Besides senior Jaipuria, his son Ruchir Hans Jaipuria has been actively involved in setting up the business. The Jaipurias are one of the largest soft drink bottlers in the country.

The 60:40 JV has been on the prowl to effect brewery acquisitions and has been in talks with potential targets in Rajasthan. The combine could also join the bidding process for Mohan Meakins, which is expected to kick-start shortly, though it could be a long drawn affair given the promoter family's disparate interests.

The JV is expected to snap up an old brewery with a central licence initially, making it a vehicle to bring in FDI. The breweries that came up after 1998-99 have no central industrial licence and operate only on state excise permission. Incidentally, the two breweries to which the combine is talking to hold central licences.

The JV has no plans to uncork the Heineken brand in India initially, and will focus on other brands in APB's portfolio, including Tiger and Anchor.

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