Eros Group to diversify into liquor business

The Delhi-based Rs 5,000-crore real estate major, Eros Group, which has recently added a new five star hotel, Hotel Park Royal Intercontinental, in the capital, has decided to diversify into alcoholic beverages business.

The group has acquired the Mauritius-based Continental Breweries, which has a production capacity of 1,25,000 hectare litres. The brewery, now renamed Universal Breweries, will be the second brewery in that country and Eros Group is planning to serve the South African and Indian beer markets through the new acquisition. Talks are on with German companies for franchising and retailing of its brands for other overseas destinations.

Raman Sood, managing director, Eros Group, said, "We had decided to diversify into the liquor business sometime in April when we got to know that the Mauritian government had decided to sell its brewery and subsequently we acquired it with investment of around Rs 40-45 crore and the brewery will commence production within 3-4 months.

"While our main target will be to woo the potential beer market in Mauritius, we will also be selling our products in India. The brand name has not been finalised yet."

The brewery located at Novelle France, spread over 16 acres of land, has the flexibility to have a 100 per cent hike in its existing production capacity of 1,25,000 hectare litres. The local demand in Mauritius is about 5,00,000 hectare litres annually.

In the first phase, the group will produce beer in glass bottles and in the next phase, beer will be available in cans and pet bottles.

"Marketing strategy is already in place but we are yet to chalk out promotional activities for both Mauritius and Indian markets. Besides, targeting the South African beer markets, we will also look at duty free exports in other African countries and in the first year of operation, we expect to generate around Rs 60 crore, " Sood told Business Standard on Friday.

The real estate major had in the recent past entered into the hospitality segment with the opening of Hotel Park Royal Intercontinental at Nehru Place in New Delhi and has further acquired the Kanishka property, also in Delhi.

"Kanishka will be reopened by this December under the new name _ Shangri La. The total investment for the property is over Rs 200 crore. Currently we have projects a worth over Rs 1,000 crore in the pipeline which includes two malls with multiplexes in Faridabad. We also have decided to build one of the biggest malls in New Delhi at Rajouri Garden," added Sood.