The Hindu : Business : SABMiller to invest $125 m

Online edition of India's National Newspaper
Wednesday, Jun 15, 2005

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Business

SABMiller to invest $125 m

Staff Correspondent

MUMBAI: SABMiller plc has announced its intention to invest in excess of $125 million over the next five years. The company has identified India as a strategic growth market for the group. The amount will be invested in capital expenditure and marketing initiatives to expand its current operations and further develop market-leading brands in India. The company recently announced that its Indian subsidiary, MBL Investments, acquired the Shaw Wallace group's residual interest in the brewing operations of SABMiller's Indian joint venture. The company is inaugurating a $14 million upgrade programme at its Hyderabad brewery.

Andre Parker, Managing Director of SABMiller Africa and Asia, said, "Climatic conditions in India are more suited to drinking beer, which is seen as a healthier alternative than other alcoholic beverages.With the further investment we are able to upgrade and expand our existing breweries, develop our brands and increase the standard of the barley farming industry through co-operative initiatives."

SABMiller had been in operation in India since October 2000, when it bought the Narang Breweries, near Lucknow. In June 2001, the company acquired a controlling interest in Mysore Breweries, which has made acquisitions in other brewing operations in India. In May 2003, Mysore Breweries entered into a strategic 50:50 joint venture agreement with the Shaw Wallace group.

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