UB may scout for JV partner

United Breweries, the beer arm of UB Group, looks set to actively seek out a joint venture partner to grow this Rs 1,500 crore business.

This move has been necessitated as its current joint venture partner Scottish & Newcastle (S&N), which holds 37.5 per cent, is likely to be taken over on a global basis.

According to international reports, the bidders include SAB Miller, Carlsberg - Heineken consortium, Anheuser-Busch and InBev.

In an interview with Business Standard, Ravi Nedungadi, president & CFO, UB Group said: "Whoever acquires Scottish & Newcastle gets grandfathered into agreement with us. Under various clauses in the joint venture agreement, we have a right to acquire the shares back. Once we retain that stake, we will actively scout for a joint venture partner. What we do not want to do is end up in bed with whom we haven't contracted before."

According to industry information, there will be clarity on the $12 billion bid for Scottish & Newcastle within the end of this month. The Carlsberg - Heineken consortium has been given time till January 21, 2008 to either make a firm intention of offer or be away for next six months from bidding for S&N.

United Breweries has so far been pretty successful in retaining its market leadership in the Indian beer market with 45 per cent share, a position which is being actively sought by SAB Miller which has a share of 38 per cent.

SAB Miller, a rather late entrant into the Indian market during last five years have been acquired business to scale up its size.

The company during 2006 acquired Foster's business and brand in India for $120 million, prior to which it acquired the beer business of Shaw Wallace in 2003.