Cobra targets local buyouts

MUMBAI: UK-based Karan Bilimoria’s Cobra Beer will develop three greenfield projects in the country in the next three years with an investment of $50 million.

“Our first greenfield brewery would come up in Punjab in two years which will be followed by a brewery in Hyderabad and then somewhere in south west,” Bilimoria said on the sidelines of an investment seminar.

Besides, the company is also looking at an acquisition in the country. He, however, did not divulge the details.

He expects to sell 10 million cases in the country of Cobra beer by 2010. “We are currently 3 million cases in India and in just one year of operations we have been able to capture 3% of the total beer market here,” he said.

In the next three years, Bilimoria hopes to achieve a market share of close to 6%, which would translate into around Rs 400 crore in terms of revenues.

Bilimoria, a member of House of Lords, said for its Punjab brewery, all necessary approvals are in place along with a local partner.

“We have done the feasibility study and got the licence for brewing and it will take another one year for the brewery to be up and running,” he said.

The company has no immediate plans to open an Indian subsidiary to streamline its operations in the country. “But options are open,” Bilimoria said.

He sought to downplay stiff competition from established players in India. “In presence of established and ancient beer manufacturers in England, Cobra Beer was able to do good business,” he said.

Bilimoria said the company could repeat the feat in India, too. Moreover, with presence of more and more beer manufacturers, the market would also grow which will be beneficial for Cobra as well as its competitors, he said.