Cobra Beer founder Karan Billimoria is planning to raise funds separately for investing in India to ramp up its business in India.
Cobra Beer founder Karan Billimoria is planning to raise funds separately for investing in India to ramp up its business in the country, even as the firm entered into joint venture with UK-based brewing major, Molson Coors.
The 50.1: 49.9 joint venture (Cobra Beer Partnership Ltd) deal struck between the two firms yesterday had kept the Indian operations of Cobra beer out of the purview.
"Currently, I am working on raising money for the Indian business...the amount raised would be spent on completing the acquisitions of brewery in Bihar and promoting Cobra beer in the country," Cobra Beer founder and chairman Karan Billimoria said from London.
He, however, declined to give the details of the amount to be raised and how it would be carried out but said it would be "completed in two months".
"We have invested seven years in setting up the business in the country and would like to keep it," he added.
Asked about the company's plans in India, he said," Our immediate plan is to increase the brewing capacity in India to five million cases and to achieve break-even by mid 2010."
Last year, Cobra Beer had entered into an agreement with Bihar-based Iceberg breweries for acquiring the majority stake in it. Billimoria said he plans to put more money to complete the acquisition.
The company had said it would set up a greenfield plant in North India with an investment of USD 10 million and a capacity of 5 million cases per annum. It is also mulling to set up another brewery in Hyderabad.
It had tied-up with Impala Brewery in Goa which has a capacity of churning out one million cases per annum, besides partnering with Manar Brewery in UP and Mount Shivalik in Rajasthan.
Billimoria said he would continue to be associated with Cobra Beer Partnership Ltd and would be on the board of the company. He, however, made it clear the money raised through the deal with Molson Coors would not be invested in India but would be utilised for repaying debts.
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