Jaipuria group to brew beer

Delhi-based Jaipuria Group is now venturing into beer brewing. The Rs 2,000-crore group has signed a memorandum of understanding (MoU) with Anheuser-Busch (A-B), makers of the Budweiser beer brand, the second-largest beer-brand in the world in sales.

However, the company has not finalised a site for the proposed project but they are looking for locations in Maharashtra, Andhra Pradesh and Goa.

Talking to Business Standard, SMV Agencies Private Ltd (a subsidiary of the Jaipuria group) CEO Praveen Bhatia said, "Andhra Pradesh, Maharashtra and Goa constitute 50 per cent of the total beer consumption. So, viewing the robust demand in the domestic market we have signed the MoU with."

The domestic beer market has shown double-digit growth over the past two years, taking the annual consumption to 108 million cases (of 7.8 litres each) in 2005-06.

Bhatia said although the site for the purposed plant was not decided on, it might be in Andhra Pradesh or in Maharashtra.

Commenting on investment figures, he said, "Since the product is in an infancy stage, it is hard to give investment figures right now as it will depend on the business and production plan."

The group has interests in bottling, housing projects, retailing and technological solutions to its key business partners.