Cobra eyes 100 cr turnover on aggressive expansion

New Delhi, May 20: With an ambitious plan to cover 14 states pan-India over the next two years, British brand Cobra Beer aims to clock a turnover of Rs 100 crore from the current Rs 20 crore.

The UK-based company, started by Mr Karan Bilimoria in Fulham, Southwest London, will invest 30 million dollars for setting up breweries in various states such as Orissa, Andhra Pradesh and Karnataka.

''Compared to the previous year's turnover of Rs 20 crore we aim at achieving Rs 100 crore this year,'' said Cobra Indian Beer Pvt Ltd's Chief Operating Officer Poonam Chandel.

The company will opening its breweries in Himachal Pradesh by June this year. Though it started commercial production in 2004, till last year it was present in a few territories of the nine states it operates in.

Initially, Cobra beer was imported from the UK. This attracted a 400 per cent duty cost. As a result, the company started making beer locally in Rajasthan, Goa, Patna and Uttar Pradesh.

Cobra is still about 10-20 per cent more expensive than many other beers in the country.

''The different taxes like excise and octroi have forced us to think about this expansion. The difference between selling beer in India and the UK is the non existence of trade barriers across states in Britain,'' said Ms Chandel.

The limited life of beer also makes it impertinent to have breweries across the country coupled with logistical problems in India, she added.

The prime markets for Cobra beer are Delhi and Punjab while Kolkata is surging up on its sales and revenue generation.

Cobra Beer has partnered with Mount Shivalik Group, the largest independent brewing company in India, to brew Cobra under licence for India's rapidly growing domestic market and is meant to be an accompaniment to Indian curries and dishes.

UNI