Montreal, Que. – Molson Coors Brewing Company has formed a joint venture with Cobra India to brew and market Cobra brand beer in South Asia.
The venture will see Molson Coors purchasing a controlling stake in Cobra India. The brewing giant will also invest $35 million towards working capital and future expansion plans for the joint venture, Molson Coors Cobra India, and will maintain operating control the new company.
The Indian market
“This deal marks the beginning of a long-term commitment to establish Molson Coors in India, the world’s fastest-growing beer market,” said Kandy Anand, president of Molson Coors International. “Our first step will be to work with Cobra India’s employees, customers and suppliers to consolidate the business. Longer-term, our ambition is to build this compelling brand and grow the business to a meaningful market share as part of Molson Coors International’s strategy to achieve critical mass in high-growth emerging markets.”
The Indian beer market is growing at a rate of 12 per cent annually, and is expected to jump to an estimated 50 million hL by 2020.
Included in the agreement is a 17,000-hL brewery in Bihar, India, with a capacity to expand to 50,000 hL. Brands included in the venture include Cobra Premium, King Cobra Superior and Iceberg 9000.
The joint venture will be headquartered in Mumbai, India, and will be chaired by Lord Karan Bilimoria, Cobra’s founder.