Cobra Beer eyeing acquisitions in India

UK-based beer maker Cobra Beer is eyeing four breweries in all the four regions of the country for possible acquisitions.

Regional director (India), Perses Bilimoria, indicated the first buyout would be completed by the end of this year.

"We are looking at breweries with a minimum capacity of 300,000 cases a month in north, south east and west," Bilimoria said.

Cobra Beer, launched in India one year back, is also planning to introduce its strong-beer brand 'King Cobra' in the country this summer.  Recently, the price of its flagship brand, Cobra Beer, was reduced to Rs 40 (650 ml bottle) from Rs 50 in markets such as Delhi.

"The idea is not to start a price war but to make Cobra more affordable. The ultimate objective is to make Cobra Beer the No.1 brand in the country, which would be a long process spread over eight to 10 years," Bilimoria said.

Cobra Beer would continue to take the inorganic route for growth in the Indian market over the next three to five years, Bilimoria added.

Currently, Cobra Beer is made on a contract-basis at Mount Shivalik's brewery in Rajasthan, where the monthly capacity is about 300,000 cases.

"The current capacity utilisation here is not more than 15-20 per cent. This year will be our first full summer, hence we have not really looked at our market share so far. However, in the last five months, our sales in India was 150,000 cases," Bilimoria added.

Cobra Beer would also be available at retail outlets in Uttar Pradesh by April 2006.

Cobra Beer Ltd was founded in 1989 by the UK-based non-resident Indian, Karan Bilimoria.  One of the fastest growing beer brands in the UK , it is exported to over 40 countries worldwide.