Shaw Wallace to go global after revamp

By Our Special Correspondent

NEW DELHI, SEPT. 10. Helped by unexpected buoyancy in beer sales, Shaw Wallace has decided to go global once the on-going restructuring and capacity expansion exercise is over. The company may tie-up with a foreign company for the purpose, stated a company news release here today. In the first four months of the current fiscal, Shaw Wallace claims to have sold 7.5 million cases of beer, the highest cumulative sales by the company so far.

``A dominant position in the domestic beer market has emboldened us to launch a global initiative. The alliance with a foreign partner with a portfolio of lager beer brands will help us carve a larger share in the lager beer segment," the news release quoted the company Chairman, Mr. M. R. Chabbria, as saying. The international tie-ups will provide an opportunity to Shaw Wallace to access overseas markets while helping the international partner to introduce their brands in India.

At present, the company has beer manufacturing facilities in 11 locations including Nepal. It is now setting up four greenfield breweries in Kerala, West Bengal, Goa and Madhya Pradesh at an investment of about Rs. 100 crores. It is also expanding the capacity at four major breweries, leading to an addition of nearly 50 per cent in brewing capacity.

Under the restructuring drive, the company plans to consolidate the liquor and beer businesses under two separate subsidiaries. The capacity expansion as well as the restructuring exercise will be competed over the next two years.

Shaw Wallace is confident of making a dent in the international markets on the strength of its performance in the domestic market. It claims to have wrested leadership in the country's two largest beer consuming States of Maharashtra and Andhra Pradesh. This has enabled the company capture 27 per cent share of the Indian beer market despite competition from domestic and transnational corporates.

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Section  : Business
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