Carlsberg Ties Up with 2 More Manufacturers to Expand in India
Mumbai: Danish brewer Carlsberg has entered into contract manufacturing agreements with Lilasons Industries in Maharashtra and Pali Hills Breweries in Jharkhand on Monday to further increase its capacity and footprint in these states.
Carlsberg India managing director Michael N Jensen said, "Maharashtra is a growing market for us and this association is a step towards strengthening our operations in the state. As regards Jharkhand, we aim to ensure that our focused brand portfolio is available to our consumers in the region," he added.
Lilasons Industries has made significant investments in equipment, automation and processes to upgrade its brewery operations in Maharashtra to ensure global quality standards, said Carlsberg in a statement.The brewery will manufacture Carlsberg Elephant and Tuborg Strong.
Pali Hills Breweries, which currenly has a production capacity of 0.2 million hectolitres per annum, would manufacture the Carlsberg and Tuborg brands. The decision by the Bihar government to ban liquor sales in 2015 took a big toll on the company's revenues, forcing it to consider pulling out since there was no backup plan for this unexpected move. The recent ban on liquor shops operating within 500 metres of national and state highways is likely to further hit liquor companies, as about half of the total 66,000 outlets in the country would be affected by this policy move. According to the company, the ban will drastically reduce the number of points of sale, impacting business.
Carlsberg, which started operations in India in 2007 with the setting up of Paonta Sahib Brewery in Himachal Pradesh, is the third-largest beer maker in the country with a 16% market share. Carlsberg India volumes were up 16% in the December quarter.
The Danish brewer has partnered with Lilasons Industries in Maharashtra and Pali Hills Breweries in Jharkhand