UK & India: Cobra Beer plans to invest $20 million in India by 2009

Cobra Beer based in UK is going to invest $20 million in India in the next two years, Rediff News reported January 18. Of this, about $10 million is likely to be spent on promoting the brand and setting up a distribution network in the country.

Cobra beer is famous among the Asian ethnic community and which gels with the spicy dishes offered at various Indian restaurants in London, also hopes to get listed on the London Stock Exchange by 2009.

The company's CEO Karan Bilimoria on Wednesday said the investment would be made at the greenfield plant likely to come up in Hyderabad besides looking at acquiring breweries.

He said Cobra beer was being brewed at two locations in the country and two more locations will start brewing shortly. The company, to further expand its presence, is further looking at tying up with another brewery, which will take the count up to five.
Work on the greenfield plant, if it comes up in Hyderabad, is slated to start by June or July, this year. According to the UK-based entrepreneur, they will add 3 million cases to their present capacity of 2 million cases in the next five years.

"At present, India's contribution to our revenues is less then 10 per cent but in the next five years I think India will be our biggest market," Bilimoria said.

At present, India's beer consumption is about one liter per person per year and according to Bilimoria, this will grow to about 20 liters per person per year in the next 15 years. However, this was extremely low when compared to most of the developed countries, he said.

"The market will grow extremely fast because of which we will need a lot more breweries in India. Everything in India is conducive to beer, especially the climate but people need to start seeing it as a refreshment," he said.

Of the two breweries identified, one is slated to start production next month, while the second one is likely to start production in March.

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