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Asia Pacific to set up brewery in Andhra

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Our Regional Bureau Chennai/ Hyderabad
Asia Pacific Breweries Limited (APB) of Singapore is about to add more fresh froth in India's largest beer consuming state, Andhra Pradesh, through a joint venture partnership with Jaipuria Beverages & Food Industries Private Limited, which is associated with the Delhi-based Jaipuria group, one of the largest manufacturers of soft drinks in India.
 
Called Pearl Breweries Private Limited (PBPL), the new joint venture company of which APB holds the majority stake of 67 per cent, will build a greenfield brewery with an initial brewing capacity of 2.5 lakh hectolitres just outside Hyderabad. The brewery is expected to commence operation by end 2007.
 
The initial investment in PBPL is estimated to be US $15 million of which the equity contribution is estimated not to exceed $10 million.
 
The equity capital will be contributed by APB and Jaipuria in proportion to their respective shareholdings. APB's contribution will be funded through a combination of internal resources and external borrowings, according to a press release.
 
The joint venture marks APB's second investment in India, which follows its investment in Aurangabad Breweries Limited (ABL) in May 2006.
 
With a portfolio of over 40 beer brands and variants including Tiger as well as Heineken and Anchor, APB has operations in ten countries in the Asia Pacific region.
 
"Andhra Pradesh, being the fifth largest state in India, is one of the most dynamic economies locally. It also doubles up as the major link between the north and south of India and this makes it a highly valuable and strategic geographic location for APB to build its base there and eventually extend to the regions further afield," Koh Poh Tiong, chief executive officer of APB, stated adding that AP makes up some 16 per cent of India's total beer market of around 8 million hectolitres per annum.

 
 

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First Published: Jul 03 2006 | 12:00 AM IST

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