Blossom Industries is the only brewery in Daman with a capacity to produce nine lakh cases per year. This tie up will provide MABL (in which the UB group holds a 62 per cent stake) an opportunity to utilise the brewing capacities, besides providing a major thrust to their export plans. "It's a delibrate move to cash in on the India's appetite for strong beer," Millennium Alcobev vice chairman and managing director Ravi Jain said, adding that the company has planned for the production of 15 million cases. Of this, five million cases will be contract manufactured by Mohan Meakin and Blossom Industries.

Blossom Industries was promoted by a group of NRIs in association with Associated Breweries before it was shut down due to poor economies of scale.

MABL had then persuaded the Khemani Brothers to take over Blossoms, facilitating it relaunch last month. Blossoms has restarted operations with UB's popular beer brand Kingfisher Strong and will soon start brewing MABL's Zirango. As part of the agreement, MABL will modernise Blossoms' brewery, upgrade technology and plants, besides setting up new filteration processes for increased productivity. MABL will source another five million cases through UB's existing breweries and existing contract breweries. For the remaining five million cases, it will be sourced via breweries where MABL would have a strategic stake/majority stake. MABL is actively considering such investments in the coming months.

Jain said, "while the regional brands are enabling MABL to gain market share and develop a niche for them, 'Zirango' will cater to countries with a strong beer market segment," Jain said.

MABL plans to focus on strong beer, liquor and ready to serve drinks which has not yet made a mark in the Indian market. The strong beer segment accounts for 60 per cent of the Indian beer market - worth 80 million cases.

MABL currently enjoys a 7 per cent share of the strong beer market through regional brands viz Kalyani Black Lable Strong, Bullet Super Strong, Flying Horse, Sun Lager and Charge Extra Strong. Jain also said that MABL is likely to enter into a joint venture with a foreign brewer in the near future, adding that the foreign company will provide the technology transfer and plant upgradation facilities to MABL.

MABL will, in return, offer an immediate rollout for their brands across the country, Jain added. This starategy will increase MABL's market share to 15 per cent taking it to the number three slot in the strong beer segment, Jain said. He, however, did not disclose the names of the foreign companies who are in talks.