Tiger Beer, Heineken Set To Seek A High In India

The Singapore-based $1.4 billion Asia Pacific Breweries proposes to set up a brewery in the country for brewing world famous brands such as Heineken, and the company's flagship brand Tiger Beer.

The company received the Foreign Investment Promotion Board(FIPB) approval to set up a subsidiary a year ago.

"We may either set up our wholly-owned brewery or go in for a joint venture with a partner possessing adequate technical expertise," said Asia Pacific Breweries India country manager Vivek Dogra.

The company is also open to agreements with existing breweries for contract brewing. "We have not, as yet, firmed up our investment plans, " he added.

 

A host of brands under the Asia Pacific Breweries umbrella - Anchor Beer, Tiger Classic, Raffles Light, ABC Stout, Guinness Stout, in addition to Tiger Beer and Heineken - are currently available in duty free shops in the country.

"We are in a niche market and our products are sold in many of the 5-star hotels in the country.

The hotels can directly import from the beer from Singapore," Vivek Dogra said.

"The Indian beer market is extremely rigid in terms of regulations and we are extremely cautious in locating our brewery," he added.

According to Dogra, the per capita consumption of beer in the country is just around half-a-litre compared with a whopping 150 litres in some of the European countries.

"This is one of the major deterrents for any beer company coming into India," he said. Asia Pacific Breweries plans to focus on the southern and western parts of India and the brewery is likely to be located in these regions.

Asia Pacific Breweries, founded in 1930 as Malayan Breweries Ltd, is a joint venture between soft drinks conglomerate Fraser & Neave and Heineken NV of Holland.