AB InBev to consolidate Indian entity, exits JV with RJ Corp

Company will focus on Indian market and consolidate its position in the country through additional brand investment and capacity expansion

Belgian brewing giant, Anheuser Busch InBev plans to go solo in India through Crown Beers India Ltd, its wholly-owned entity, after exiting the joint venture with RJ Corp.

The company would focus on Indian market and consolidate its position in the country through additional brand investment and capacity expansion, AB InBev said in a statement.

"This comes on the back of a strategic decision by AB InBev to further grow its business in India through additional brand investment and capacity expansion," it said.

However, the company has not disclosed the terms and conditions of the agreement on which it is exiting to form JV.

It added that its current staff and operations would be transferred to Crown Beers India after the completion of the transaction.

Commenting on the development, AB InBev Zone President for Asia-Pacific, Michel Doukeris said: "We see long term opportunities to grow our business in India. The strong foundation provided by our Indian JV with RJ Corp will allow us to now plan on further growing our premium brands in India and giving consumers increased access to our portfolio of great beers."

RJ Corp Chairman Ravi Jaipuria said: "AB InBev and RJ Corp have had a successful partnership with Budweiser in India. Today, in its new growth phase, we wish AB InBev a great run ahead."

Anheuser-Busch InBev is a leading global brewer and has over 200 beer brands in its portfolio which include Budweiser, Corona, Stella Artois, Beck's, Leffe, Hoegaarden.

The brewing giant, which had revenues of USD 43.2 billion in 2013, approximately has 1,55,000 employees based in 25 countries worldwide.

RJ Corp is a diversified group having franchise rights for global brands like Pizza Hut, KFC, Costa Coffee besides its own brand Vango and has business in several countries.