Cobra Beer likely to raise $10 million

Cobra Beer India, a wholly-owned subsidiary of $160 million Karan Billimoria's Cobra Beer of UK, is looking at raising around $10 million to fund its expansion plans in India.

The company plans to set up a greenfield brewery, preferably in Andhra Pradesh, as and when they reach a sales volume of around 3 million cases.

The company currently has a pact with a brewery belonging to Mount Shivalik Group in Rajasthan to cater to its current needs of around 3 lakh cases.

Cobra beer which came to fame in the UK market due to its taste which goes well with the spicy Indian curry, is stepping on the gas in the Indian market and is looking at a CAGR of 30 per cent.

Perses Billimoria, regional director, Cobra Indian Beer said: "The Indian beer market is growing at a pretty rapid pace. We are also getting strong signals from various state governments about separating beer from the uniform alcohol taxation structures and this is a good sign for growth. We will be investing aggressively through support from our parent and if required will go for external funds."

The company, if an opportunity comes by, will look at acquiring majority control in breweries and is also open to exiting the business if "a good proposition comes our way."

Said Billimoria: "Cobra Beer is our baby and we want to grow aggressively. Having said that, if a good offer comes, we are open to selling out."

Meanwhile, the company announced the launch of its super premium beer in Bangalore starting at around Rs 36 for a bottle.

"Cobra owes its origins to the state of Karnataka. Cobra beer was first brewed at Mysore Breweries in 1990 and thereafter was exported to England for the next seven years. The launch of Cobra here is, therefore, a homecoming for the beer that began its journey from Bangalore," he added.

The company is also lining up launch of its strong beer in the near future. "Our three pronged strategy is to drive better distribution systems, work with more breweries in order to enhance our capacity and tap key markets with new products," he noted.