Shaw Wallace On Prowl For Foreign Brewery Ally

The Manu Chhabria-controlled Shaw Wallace Breweries is looking at the possibility of roping in an international brewery major as a partner and will help it in launching of major beer brands in India, and taking its own brands abroad.

Manu Chhabria, chairman of Shaw Wallace group of companies, said, "The alliance for our beer business will be similar to that of our tie-up with Kyndal International in the spirits business." However, he did not rule out the possibility of offering stake either in the beer and spirits business.

The alliance with Kyndal involves only manufacturing and distribution by no equity tie-up. The expansion strategy chalked out is part of McKinsey & Co's recommendations to the company.

The alliance with a foreign partner with a portfolio of beer brands will help Shaw Wallace garner a larger share and hence attain the numero status (it lags behind Vijay Mallya's UB group) in the beer market. The UB group is also looking at divesting 26 per cent stake in its beer business.

Industry analysts said: 'The international beer players who fail to pick up stake in Mallya's beer business could then look at acquiring a stake in Chhabria's beer company.' Shaw Wallace's leading beer brands include Haywards, Royal Challenge Premium Lager.

In fact, to fine tune its new beer game plan, Shaw Wallace has appointed McKinsey & Co to draw strategic direction, cost control measures and to take Shaw Wallace global.

Shaw Wallace and Company embarked a restructuring excercise has identified three core areas--brand ownership, liquor distilling and beer brewing. Shaw Wallace has undertaken an excercise to merge its investment companies into two manufacturing companies and merge its liquor and beer manufacturing subsidiaries into just two arms, one each for liquor and beer.

Shaw Wallace already has a presence in certain global markets like it sells Kohinoor beer in the US and Lal Toofan in UK. The company was also in the process of exporting Haywards strong beer to Japan.