Carlsberg to invest US$40.2M in India to boost capacity

INDIA – Carlsberg has announced plans to invest Rs 3.5 billion (US$40.2 million) to expand its brewery in Mysuru, Karnataka, as part of a strategic growth initiative in India. 

The investment follows a memorandum of understanding signed between Carlsberg and the Karnataka state government. The expansion will see the addition of a new can, glass, and keg line at the Mysuru facility, increasing Carlsberg’s total investment in the state to Rs 600 crore. 

The Mysuru brewery, which spans 28 acres, currently has an annual production capacity of 80 million liters.  

With the new investment, Carlsberg expects to double the site’s capacity to 160 million liters per year. The facility primarily manufactures Carlsberg and Tuborg products for the Karnataka market. 

Nilesh Patel, managing director of Carlsberg India, emphasized the significance of this expansion. 

“Karnataka is a key market for Carlsberg India, and this expansion underscores our long-term commitment to the state. Our investment will not only support economic growth but also generate additional employment opportunities in the coming years,” Patel said. 

This investment comes on the heels of Carlsberg’s acquisition of its joint venture (JV) partner’s remaining stake in Carlsberg South Asia Limited (CSAPL).  

The deal, completed in November, saw Carlsberg pay US$744 million for the Khetan Group’s 33.33 percent stake, giving the brewing giant full ownership of its Indian business and a 99.94 percent stake in its Nepalese operations. 

Carlsberg’s 2024 annual report highlighted that full ownership of the Indian business would allow the company to accelerate investments, expand production capacity, develop its portfolio, and strengthen distribution channels to capitalize on long-term market growth opportunities. 

Since entering India in 2007 with the acquisition of a brewery in Himachal Pradesh, Carlsberg has expanded to manage seven breweries across the country. The company’s portfolio in India is led by its flagship brands, Carlsberg and Tuborg. 

In its FY 2024 financial report, Carlsberg reported low-double-digit volume growth in India, driven by strong demand for Tuborg Strong and Carlsberg Elephant.  

Additionally, in December, the company expanded its premium offerings by launching 1664 Blanc in the super-premium segment. 

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