Southern flavour: Carlsberg plant at Mysuru to be ready next year

Carlsberg India is setting up one of its largest beer manufacturing facilities in Mysuru district of Karnataka.

Under construction, it will have annual production capacity of 80 million litres and be ready next year, Michael N Jensen, managing director, Carlsberg India, told this newspaper.

The company’s presence in the southern markets is lower than its foothold in the northern part. Carlsberg is the third largest beer maker in the country, with 15.7 per cent of the market.

The UB Group's Kingfisher has 52 per cent, followed by SABMiller at 25 per cent.

Unlike other markets, Carlsberg in India had been focusing on specific cities to grow sales.

Currently the company targets 140 cities. Its presence in the northern part is backed by seven manufacturing units (including that of co-packers).

The markets in the south remain under-supplied, with a plant each in Chennai and Hyderabad.

Once operational, the Mysuru plant will help Carlsberg increase its sales and become the second largest player in the market, Jensen hopes. “We’ve been in the Indian market for over nine years and achieved the number three position within the first four years,” he said.

Annual per capita beer consumption is less than two litres a year in India, compared to 32 litres in China and 43 in Japan.

About 85 per cent of the beer sold in the country are strong, with alcohol levels between five and eight per cent.

Tuborg, a Carlsberg brand, is the second largest selling, after Kingfisher. BARE FACTS

• Per capita beer consumption in India remains low at two litres, compared to 76 l in the US and 32 l in China
• Unlike major economies, canned beers failed to pick up in India; account for only 15% of total sales
• Domestic market continues to be dominated by strong beers, for 85% of total sales
• Carlsberg India’s sale grew 42% in 2014-15; beer industry in India grew 5.5%
• UB Group’s Kingfisher leads the market, followed by Tuborg from Carlsberg
• Tuborg’s sale grew 47 % in 2015, remains the number one international beer brand in India