APB to brew Heineken, Tiger in India

The crowded beer market in the country is poised to welcome two more established labels. Singapore-based Asia Pacific Breweries (APB) has decided to brew its international brands, Tiger and Heineken, in India and is looking for suitable locations.

The brands are now available in the country only in hotels through the import route.

APB also plans to revive its Indian brand, Arlem, which it had stopped after setting up the Indian subsidiary, Asia Pacific Breweries (Aurangabad).

"We are looking at all opportunities that come our way," James Wong, the company's general manager, Singapore cluster, said. "By widening our portfolio in India, we are certain that within the next five years, we will be one of the top-three players in India.

APB is also looking for acquisitions. APB holds the majority stake in two breweries in Hyderabad and Aurangabad, with 6 million cases and 5 million cases capacity, respectively.

The company recently increased capacities by investing Rs 72 crore in Aurangabad and Rs 80 crore in Hyderabad.

The company plans to revamp its Goa brewery, which it had decommissioned. After launching its flagship brand Baron's in a phased manner, the company hopes to have a pan-India presence in three years.

The Indian beer market is dominated by Vijay Mallya's UB Group, whose flagship brand is Kingfisher. Other global brands such as Budweiser, Heineken, Carlsberg, Cobra and Beck's have managed a 12 per cent market share. The 137-million case (12 bottles in each case) Indian beer market is expected to touch 300 million cases by 2012.

APB, a joint venture between beer giant Heineken and Fraser & Neave group of companies, has over 40 beer brands.

Baron debuts
Singapore-based Asia Pacific Breweries (APB) today launched Baron's strong beer in north India. The beer was developed under the technical supervision of Heineken, a global beer giant, which is set to inherit a 37.5 per cent stake in Vijay Mallya's United Breweries from the acquisition of Scottish & Newcastle.

Among other players who have entered the Indian beer market in the last one year, largely dominated by Kingfisher, include Danish brewer Carlsberg, Karan Billimoria's Cobra beer and Budweiser.

The strong beer segment contributes over two-thirds of beer sales in the country. The beer is being initially launched in Delhi in 650 ml and 330 ml bottles. The brand aims to carve a position for itself in the premium strong beer segment and will be progressively rolled out in other parts of north India.