India & USA: Anheuser-Busch to build new brewery or to bring existing Indian brewery to its standards

Anheuser-Busch’ International Operations CEO Steve J Burrows was reported to enter into negotiations over a joint venture with Crown Breweries, The Economic Times posted July 13.

During his stay in India, Burrows met Prasad Rao and Srikant Reddy, builders of Charminar Brewery, forwardly sold to Shaw Wallace Group & Co., member of UB Group.

Charminar Brewery is located in the state of Andhra Pradesh, which accounts for 21% of India’s annual beer sales. Until 2003, Charminar was restricted to a licensed capacity of 325,000 hectolitres a year. Its 18-month massive expansion programme, which increased this to a potential maximum capacity of 950,000 hectolitres a year, was completed on schedule in May 2005, without disruption to the brewery’s operations. Today, Charminar is India’s biggest and most advanced brewery, as well as its lowest cost producer, able to deliver 34% of all our Indian operation’s volumes.

Burrows said: “The Indian market is very attractive. We are exploring various options of running a profitable business venture in India. We are exploring possibilities of building a new facility or modifying an existing brewery to our standards. We are yet to take a decision on it,”

Anheuser-Busch’ International Operations head declined to comment on any negotiations with Crown Breweries.

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