Carls­berg Ties Up with 2 More Man­u­fac­tur­ers to Ex­pand in In­dia

The Economic Times - - Brands: Creating Desire - Neha.Tyagi@ times­

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

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