"Our mission since day one has always been to brew the finest ever Indian beer and make it a global brand. Now we have the funds we need for our medium-term development and have ambitious plans to build on the current success of Cobra Beer to reach our goal," Karan Bilimoria, CEO, CBL said in a statement from London.
The company said it would utilise £1.5 million to finance its expansion plans in the UK and in India, to raise financing for marketing and distribution in both countries, as well as working capital and to expand draught beer capacity in the UK, adding it expected substantial growth in India's beer market over the next 10 years.
Cobra Beer is brewed for the local market under licence by Mount Shivalik, a large independent brewer operating principally in Rajasthan, and has plans for establishing further brewing capacity in the North, East and South regions.
Out of the total funds raised, £13 million will be used to redeem all its convertible cumulative redeemable preference shares, which were due to be redeemed in 2007 and the remaining funds, after additional funding will go to international markets, including South Africa and exports.