Carlsberg-Lion JV to set up beer plant in Rajastan

Colombo, Dec 7 (UNI) Danish brewer Carlsberg with its Sri Lankan partner Lion Brewery Ceylon Ltd has decided to build a multimillion rupee brewery plant in Rajasthan with the first phase to be completed by the first quarter of 2008.

''The proposed brewery in Rajasthan would have a capacity of around 4,50,000 hectoliters (hl) and we plan to have the first stage up and running by the first quarter of 2008,'' Sri Lanka's leading beer maker Lion Brewery Finance Director Anil Gunatilleka said.

According to Mr Gunatilleka, Carlsberg will hold the majority 45 per cent stake in the joint venture -- South Asia Breweries Ltd -- in which Lion Beer will hold 22.5 per cent, Industrialisation Fund for Developing Countries 10 per cent. The remaining will be owned by a group of investors.

''Our share (Lion's) initially, is expected to be around Rs 30 crore for the 22.5 per cent share in the joint venture,'' Mr Gunatilleka said, expressing hope that the balance would come in as the project would progress.

Parties involved in the joint venture, however, have decided not to disclose expected total investments for commercial reasons.

India's total beer market is estimated at around 8 million hectoliters.

The project will come up in the industrial estate established by Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO), which is located 150 kilometers south-west of the national capital.

UNI XC PV RAI1832