SABMiller acquires Foster's India for Rs 564 cr

SABMiller Plc, the world's second-largest brewer by volume, has announced that it had entered into an agreement to acquire Foster's India for $120 million (nearly Rs 564 crore).

The sale of the India business is a part of Foster's decision to pull out of Asia. The company, Australia's largest alcoholic drinks group, today also sold its Vietnam business to Asia Pacific Breweries for $105 million.

The company has been into restructuring recently, selling its Chinese and European businesses, and revamping its Australian operations. Foster's India operates a brewery at Aurangabad in Maharashtra, with an annual capacity of 350,000 hectolitres.

In a cash-free, debt-free deal (the cash reserves and liabilities will remain with Foster's), SABMiller will assume ownership of all of Foster's assets in India, including brands such as Foster's Lager, Amberro Mild, and Amberro Strong beer. Foster's Lager represents about 88 per cent of its total sale of 236,000 hectolitres.

André Parker, managing director, SABMiller Africa and Asia, said: "This transaction enhances our existing portfolio in India, and provides us with an exciting opportunity to further increase our premium brand offering. The acquisition also supplies much needed capacity to fuel the strong growth we have experienced so far this year."

SABMiller India is the subcontinent's second-largest brewer. Its brand portfolio includes Royal Challenge, Haywards 5000, Castle, and the recently launched Haywards Black, India's first stout beer.

Sandip Kumar, director, corporate affairs, SABMiller India said, "The acquisition will strengthen our presence in both retail and institutional market."

India is the third-largest market for the Foster's brand, and it has achieved a CAGR of 13 per cent since operations commenced in 1998.

Foster's India has a presence in 19 states, and has a sizeable share of the mild-beer market in Maharashtra. It commands over 6 per cent share in the Indian premium beer market.