Asia Pacific Breweries Ltd (APB), the maker of Heineken and Tiger Beer, is betting big on the Indian beer market and has chalked out plans to set up at least five breweries across the country. The company is also looking at all other options of growing in the country, right from acquiring breweries to entering into joint ventures. The greenfield facilities will be an integral part of its expansion plans, company officials said.

Vivek Chhabra, director-South Asia, APB told FE , ?We would be expanding our network from the two breweries we have now. Over the next few years, we would like to be present in the top five major beer markets in the country, which account for 80% of the beer consumption. We are already present in Maharashtra and Andhra Pradesh and would like to have our presence across the northern belt of Haryana, Punjab and New Delhi.?

The company has set up its presence in India by signing joint venture agreements with THE Chougule Group (76:24) and C K Jaipuria Group (67:33) to form Asia Pacific Aurangabad Breweries Ltd (APABL) and Andhra Pradesh based Pearl Breweries Private Limited (PBPL), respectively. Both the companies put together will have capacity in the excess of 7,50,000 hectolitres. The company is in the drawing stages of setting up a brewery in Goa through APABL.

The company has already invested over $45 million in the Indian market and Chhabra thinks investment is not a constraint at all. He adds, ?I can definitely say that the board of APB and Heinken are committed to the Indian market and have an appetite to grow our presence much beyond where we are. Capex is not a constraint for us. APB is a $2.5 billion company and there are more and adequate funds available to invest. We are focusing on the right areas and then we would gradually expand both in terms of brand as well as capacity.?

APB has a strong product portfolio with over 40 brands. It recently launched strong beer brand Barons in India. In the next year or so, it plans to launch its flagship brands Tiger Beer and Heineken. It already has local beer brand from Maharshtra, Cannon and Arlem from the Chougule Group which it plans to sell nationwide, going forward.

Strong beer makes up about two-thirds of the Indian market, estimated at nearly 11 million hectolitres in the year to March 2007, up 27% from a year earlier.