Danish brewer Carlsberg has turned profitable in the Indian beer market in less than a decade of its entry. The second most favourite beer company posted profit in the October-December quarter on the back of rising demand.
Carlsberg CEO Cees't Hart said, "Our Indian business grew 42 percent in a slightly growing market. The business also delivered a significant earning and for the first time turned profitable."
Unlike most global markets where its top seller is the milder version of the eponymous lager, Carlsberg's Indian unit has been focusing more on strong beer such as Tuborg Strong and Elephant because strong beer accounts for 80 percent of the overall beer volume sales in the country.
"Tuborg has higher volume than Carlsberg. Carlsberg generally is higher priced than Tuborg, so in terms of value the difference between Tuborg and Carlsberg is relatively modest," Hart said.
"As the positive result of the strong Tuborg growth, we are now the number two player in the country both as a company and for the Tuborg brand," he added.
Carlsberg, which entered the country in 2006, invested Rs. 200 crore in the market two years ago in a bid to become a big player in the Indian beer market.