Is Carlsberg India considering an IPO?

Rumours are circulating surrounding Danish brewer Carlsberg pursuing plans to make an initial public offering (IPO) of its India business. At a time when the Indian beer sector is poised for growth, all moves towards investment are being keenly assessed. 

The proposed listing of Carlsberg India could raise as much as US$700 million and the brewer is said to be working with Kotak Mahindra Capital, the local units of JP Morgan Chase & Co and Citigroup Inc on the proposed share sale, according to reports from Bloomberg.

Potential

Amid the markets thriving beer scene, India’s craft beer sector in particular has been forecast to reach US$1 billion by 2027 and the beer category in India has been described as being in its “growth phase” showing that there is still room for expansion and the market is ripe for investment. There have, however been challenges for beer finding its way in the Indian market as the country faced continued supply disruptions and higher beer prices due to a surge in costs for producers following the conflict in the Middle East.

Carlsberg India currently has a market share of around 22% and is understood to be the country’s second-largest brewer behind Heineken which accounts for roughly half the market, according to The Brewers Association of India.

Expansion

Reports from Bloomberg additionally highlighted that, since Carlsberg entered the Indian marketplace in 2007, it has expanded its footprint to 14 breweries, eight of which are company-owned and six which are contract breweries.

The IPO is expected to include a secondary share sale by Carlsberg later this year, though talks connected to the details of the transaction are still subject to change, according to the report. The planned offering comes as multinational alcohol companies are predicted to be increasingly looking at ways to unlock value from their Indian arm, with many of the companies eyeing the opportunities for growth in the country.

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