San Miguel takes control of Indian brewery

29th April, 2014 by Lauren Eads

Mahou San Miguel, Spain’s leading brewer, has acquired India’s Arian Breweries & Distilleries Ltd – its first subsidiary outside of Spain.

Arian Breweries & Distilleries Ltd

Arian Breweries & Distilleries Ltd headquarters

The company has held a 50% stake in the family-owned company since 2012, but its full acquisition marks the brewer’s continuing ambition to expand and push forward its presence within international markets.

Alberto Rodríguez-Toquero, managing director of Mahou San Miguel said: “These have been two very exciting years during which together with our partners we have learned a great deal about the Indian market and consumers.”

“We now have the knowledge and experience to take a further step and assume full control of the development of our business in India. Overseas operations will be our main growth lever over the coming years.”

The Indian brewery, located in Bhiwadi (Rajasthan State), covers 64,125 square metres and has an output capacity of 250,000 hectolitres per year.

Mahou San Miguel currently has a presence within five Indian states through its local brand Dare Devil and flagship Brand Mahou.

The Andalucian craft beer Alhambra Reserva 1925, brewed by Mahou San Miguel, is set to be added to the company’s Indian portfolio.

Erik D’Auchamp, previously director of international marketing, will be based in Delhi as the new managing director of Arian Breweries & Distilleries Ltd, taking over from Francisco Ayuga who is to retire.

Consumption of beer in India per capita is currently among the lowest in the world (1.5 litres per year), although as a whole the market is already half the size of the beer market in Spain, where consumption stands at 47.5 litres per capita, according to Mahou San Miguel.

Growth within the beer market is expected to grow by 11% per year over the next three years, with a young and growing population of 1.2 billion.

 

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