14th Jun 2005 08:00
SABMiller PLC14 June 2005 SABMiller announces further strategic investment in India London and Johannesburg, 14 June 2005: SABMiller plc announces its intention toinvest further in India which it has identified as a strategic growth market forthe Group. The global brewing company's Indian subsidiaries intend to commit inexcess of $125 million in capital expenditure and marketing initiatives overfive years to expand current operations and further develop market-leadingbrands in India. SABMiller recently announced that its Indian subsidiary, MBL Investments,acquired the Shaw Wallace Group's residual interest in the brewing operations ofSABMiller's Indian joint-venture. The Group's brewing operations comprise 10breweries across the subcontinent constituting India's second largest brewer.Its key brands include Hayward's 5000, the leading beer brand in therapidly-growing strong beer segment; Royal Challenge Premium Lager, thesecond-largest mild beer in the country; Knock-Out and the international premiumbrand Castle Lager. Graham Mackay, Chief Executive of SABMiller plc said: "It is widely known that India is a rapidly expanding economy and represents anexciting growth opportunity for SABMiller. We firmly believe that a vibrant beerbusiness will not only contribute significantly to the economic development ofthe country, but a well regulated industry will encourage responsibility in theconsumption of alcohol throughout the subcontinent. This can only be achieved,in our view, by working with the Indian authorities to reform the prevailingstructure and reduce the complexity of the restrictions that are currently inplace." Andre Parker, Managing Director of SABMiller Africa & Asia, added: "Climatic conditions in India are more suited to drinking beer, which is seen asa healthier alternative, than other alcoholic beverages. While the Indian beermarket has been growing at 6 to 7 percent annually, SABMiller's brewingoperations in the country have recorded a much higher growth rate of 12 percentin the last year. With the further investment we are able to upgrade and expandexisting breweries, develop our brands and increase the standard of the barleyfarming industry through co-operative initiatives." During a visit to Group operations in India this week, Mr Mackay will meet withgovernment officials and industry leaders to discuss SABMiller's involvement inIndia. He will also inaugurate the completion of a $14 million upgrade programmeat the state-of-the-art brewery in Hyderabad as well as visit local communities. SABMiller has operated in India since October 2000, when it bought the NarangBreweries, located near Lucknow, in the state of Uttar Pradesh. In June 2001,SABMiller acquired a controlling interest in Mysore Breweries Limited.Subsequently Mysore Breweries Limited has made other acquisitions in otherbrewing operations in India and later in May 2003, Mysore Breweries Limitedentered into a strategic 50:50 joint venture with the Shaw Wallace Group ofIndia. Notes to editors: SABMiller plc SABMiller plc is one of the world's largest brewers, with 2004/05 lager salesvolumes in excess of 148 million hectolitres. It has a brewing presence in over40 countries across four continents and a portfolio of strong brands and leadingmarket shares in many of the countries in which it has brewing operations.Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Colaproducts in the world. In the year ended 31 March 2005, the group generated US$2,194 million pre-taxprofit from a turnover of US$14,543 million. SABMiller plc is listed on theLondon and Johannesburg stock exchanges. The Indian Beer Market Currently, the total Indian beer market is still small with annual sales ofaround 7 million hectolitres, but has been growing rapidly over the last 10years. This trend is continuing and overall market growth is estimatedcurrently to be some 6% - 7% on an annualised basis. The Indian brewingindustry remains highly regulated and beer is categorised with other alcoholicproducts for licensing and taxation purposes. Strong beer (alcohol by volume of 5% - 8%) accounts for 65% of the total beermarket and the key beer consuming states are Andhra Pradesh, Maharashtra, TamilNadu, Karnataka, Rajasthan and Uttar Pradesh. Per capita consumption of 0.7litres is low, emphasising the significant growth potential in a country with apopulation in excess of one billion people. Key drivers of high growth include rising gross domestic product, favourabledemographics, changing lifestyles, and the opportunity to grow per capitaconsumption together with potential deregulation of the Indian beer industry. This announcement is available on the SABMiller website, www.sabmiller.comHigh resolution images are available for the media to view and download free ofcharge from www.vismedia.co.uk Enquiries: SABMiller plc Tel: +44 20 7659 0100 Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184 Gary Leibowitz Vice President, Investor Relations Tel. +44 20 7659 0119 Mob: +44 7717 428540 Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105 Mob: +44 7799 894265 This announcement does not constitute an offer to sell or issue or thesolicitation of an offer to buy or acquire securities of SABMiller plc (the"Company") or any of its affiliates in any jurisdiction or an inducement toenter into investment activity. This document includes "forward-looking statements". These statements maycontain the words "anticipate", "believe", "intend", "estimate", "expect" andwords of similar meaning. All statements other than statements of historicalfacts included in this announcement, including, without limitation, thoseregarding the Company's financial position, business strategy, plans andobjectives of management for future operations (including development plans andobjectives relating to the Company's products and services) are forward-lookingstatements. These forward-looking statements involve known and unknown risks,uncertainties and other important factors that could cause the actual results,performance or achievements of the Company to be materially different fromfuture results, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements are based onnumerous assumptions regarding the Company's present and future businessstrategies and the environment in which the Company will operate in the future.These forward-looking statements speak only as at the date of this announcement.The Company expressly disclaims any obligation or undertaking to disseminateany updates or revisions to any forward-looking statements contained in thisannouncement to reflect any change in the Company's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatement is based. Any information contained in this announcement on the price at which theCompany's securities have been bought or sold in the past, or on the yield onsuch securities, should not be relied upon as a guide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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