SNJ to set up beer unit near Chennai

The Chennai-based SNJ group, a leading manufacturer of Indian-made foreign liquor, is diversifying into beer manufacturing. The company plans to invest around Rs 200 crore to set up a brewery unit near Chennai.

The group has also signed up with British Empire, an international brandy brand, to market its products in India and is planning to double its turnover to Rs 600 crore by roping in new foreign brands in the next three years.

Speaking on the sidelines of launch function of British Empire for the Tamil Nadu market in Chennai today, V Krishnan, who looks after the mergers and acquisitions for the group, said that a new company SNJ Breweries Pvt Ltd, was floated to set up the brewery unit.

The facility will come at Padalam junction, around 70 km from Chennai, and will have a capacity of 1 million cases a month brewery, expandable to 2 million. The unit is expected to become fully operational in the next six months.

The unit is being set up by Ziemann India, a subsidiary of Ziemann of Germany, the world's largest supplier of the brewery plant equipment.

Apart from the international brands, SNJ will also launch its own beer brands in the lager and strong beer categories.

SNJ Distillers Pvt Ltd has passed the due diligence process of international teams of global liquor giants including Diageo, Bacardi Martini, Rhum Clement Martinique etc, said its CMD, SN Jayamurugan.

Currently, the company produces around 600,000 cases every month and with the additional infrastructure and balancing equipments, the unit is capable of achieving 1 million cases every month, said Jayamurugan.

SNJ recently acquired interests in Leela Distillery (Goa), and a unit in Kerala. The Goa unit, in which the company is planning to invest another Rs 4 crore, will start supplying British Emprile brand from this plant to the Puducherry and other five star hotels in the country.

The unit will also start export to US and will gradually expand to countries in Africa, Middle East and South East Asia, added Krishnan. Overall, all the three units, Chennai, Goa and Kerala has a capacity of 14 lakh cases per month. The company is planning to invest around Rs 10-12 crore in the Kerala unit and Rs 4 crore each in the units of Goa and Orissa.