By IANS
New Delhi : London-based Karan Bilimoria’s Cobra Beer Friday said it has acquired a controlling stake of 76 percent in Bihar-based brewery Iceberg Industries, marking its first strategic acquisition in the country.
Cobra purchased the 76 percent stake for an undisclosed amount from the Katyal family-owned brewery, with Amit Katyal retaining a 24 percent share. The move is part of Cobra’s ambitious global development strategy.
“The purchase of Iceberg will help us take Cobra to a whole new level in India, allowing us to increase and manage our capacity and to really focus our efforts on the Indian market,” said Bilimoria.
“Since we began brewing Cobra in India for the Indian market back in 2005, we’ve made phenomenal progress,” said the soft-spoken Bilimoria, who is a member of the British House of Lords and a first-generation entrepreneur.
Iceberg currently has a manufacturing capacity of three million cases of beer per year, which Cobra intends to increase to seven million cases per year in a few years, to cater for its markets in north and east India.
Iceberg also has its own strong beer brand, Iceberg 9000, which is available in selected markets around Bihar region. Cobra intends to continue marketing this beer but have full management, sales, marketing and brewing control.
“We have previously brewed Cobra under licence with Iceberg and have enjoyed an excellent working relationship with the Katyal Family, which we’re sure will be further strengthened,” said Cobra chief executive Poonam Chandel.
“We’re looking at capturing a 10 percent share in the Indian beer market by 2012. In order to achieve this, we need to substantially increase our brewing capacity to sustain our growth,” she added.
The Vijay Mallya-controlled United Breweries, that owns the Kingfisher brand, is the undisputed leader in India’s beer market currently.
Cobra Beer, which started operations in 1989 by exporting beer to Britain out of Bangalore, has been making inroads in key markets in India such as West Bengal, Chandigarh, Delhi, Rajasthan, Maharashtra, Goa, Andhra Pradesh and Karnataka.