SABMiller to invest $125 million

INDIA ECONOMIC SUMMIT 2006

The money will be spent on marketing efforts and expanding breweries, says CEO Graham Mackay

After acquiring Fosters in India around four months back, SABMiller has lined up additional investment of $125 million in India.

"We will invest $25 million in our existing operations in India in the next three years. With the buy-out of Fosters in India, the total investment will touch $250 million," SABMiller Chief Executive Graham Mackay said during the India Economic Summit.

He said the investment of $125 million would be for marketing efforts and expanding breweries. The company has nine breweries in India.

"Beer has huge potential to contribute to India's development. Different laws on liquor in different states are inhibiting the growth of the Indian beer industry, which is 1/70th of the size of China," he said.

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

It is gradually improving its market share and coming close to the leader United Breweries. Globally, SABMiller had revenues of $15.3 billion in 2005-06.