Madrid, April 29 - Taking a big step in its long-term vocation in India, Spanish brewing company Mahou-San Miguel Tuesday announced the total acquisition of its Indian subsidiary Arian Breweries & Distilleries.

The Spanish group entered into a joint venture with the Indian company in 2012 and so far owned half of it.

This acquisition confirms the long-term vocation of Mahou-San Miguel in the nation, where good initial results and encouraging perspectives for market expansion predict a future of growth, the company said in a statement.

According to the European venture, Mahou-San Miguel has 60 professionals and a beer production factory unit situated in the western Indian state of Rajasthan with an annual production capacity of 250,000 hectolitres.

The Spanish group is currently present in five states of India with a local brand, Dare Devil, and after learning more about the Indian market, it will expand in the Asian nation with Mahou Cinco Estrellas and Alhambra Reserva 1925.

Now we have the knowledge and experience to step forward and take total control of our business in India, Alberto Rodríguez-Toquero, the director general of Mahou-San Miguel, said.

The per capita consumption of beer in India is one of the lowest in the world -, although it is equivalent to half the beer market of Spain, where the per capita consumption is 47.5 litres.

However, with a population of 1.2 billion, growth prospects for the Indian beer industry are very positive and it is estimated that in the next three years will increase by 11 percent, the statement said.

Also, on producing beer in the South Asian nation, the Mahou-San Miguel group will avoid taxes on the final price of the product, as tariffs on imported foreign alcoholic beverages are very high in India.

These tariffs, that can triple the selling price of the product, have not prevented other Spanish breweries, such as Estrellas Galicia and Estrella Damm, from exporting for the Indian market.

The local distributors of Estrella Galicia and Estrella Damm, B liquid and Cerana respectively, told EFE Monday in New Delhi that in addition to a cumbersome bureaucracy, heavy tariff is a main problem for commercialising their beer in India.

We are selling Estrella Galicia since 2012 in western India -, while due to bureaucratic problems sales in northern cities, such as New Delhi and Gurgaon, are delayed by four months, Rajesh Irani, representative of B Liquid, said.

However, Cerana affirmed the sale of Estrella Damm since the beginning of 2012 in the main Indian cities.

Cerana's spokesperson Ankur Sharma said despite taxes and bureaucracy, the beer is being very well received by the Indian public.



comments powered by Disqus
Read more on:
 INDIA (136901 views)
 DELHI (98661 views)
 NEW DELHI (72131 views)
 INDIAN (47121 views)
 RAJASTHAN (19621 views)
 GURGAON (14951 views)
 MADRID (13417 views)
 INDUS (9921 views)
 ALCOHOL (7371 views)
 RESULTS (7151 views)
 SOUTH ASIA (6697 views)
 HOLI (6191 views)
 INDIAN MARKET (5681 views)
 DEVI (4971 views)
 SHARMA (4811 views)
 BEGINNING (4551 views)
 SIO (4615 views)
 PROFESSIONAL (4321 views)
 JOINT VENTURE (4231 views)
 11 (3961 views)
 SOUTH ASIAN (2791 views)
 AMBRA (2473 views)
 INDIAN COMPANY (951 views)
 WESTERN INDIA (741 views)
 USTR (161 views)


You can quote the permanent link above for a direct link to the story. We do not archive or expire our news stories.

  Email this story to a friend
  XML feed for Europe

All rights reserved for news content. Reproduction, storage or redistribution of Nerve content and articles in any medium is strictly prohibited.
Contact Nerve Staff for any feedback, corrections and omissions in news stories.

All rights reserved for the news content. Reproduction, storage or redistribution of Nerve content and articles in any medium is strictly prohibited.