UB acquired the beer manufacturing firm through its wholly-owned subsidiary United Breweries (Holdings).

"This is a strategic acquisition for us in our home state of Karnataka, where we invariably run short of production capacity, particularly during the summer months," UB group Chairman Mallya said in a statement on Monday.The acquisition would enable UB to have a production base near Mangalore through which it would cater to the demand in the coastal region and northern Karnataka.

The deal follows earlier acquisitions of Associated Breweries and Distilleries and Inertia Breweries by the UB Group.

Mallya has proposed liberalising Karnataka's policy on beer consistent with international norms and the changing policies adopted by other states in India.

"The Karnataka government will no doubt earn significant additional revenue through a liberalised taxation and distribution policy for beer," he said.