Carlsberg A/S is planning a local initial public offering of its Indian business, people with knowledge of the matter said, as it seeks to tap the growing middle class’s increasing thirst for foreign beer. The Danish brewer is interviewing potential arrangers for the share sale over the next few weeks, according to the people, who asked not to be identified because the information is private.
About 3.56 billion liters (940 million gallons) of beer is expected to be sold in India by 2020, up from 3.13 billion liters last year, according to Euromonitor International. Carlsberg ranks third in the local beer market, with a 13.7 percent market share, Euromonitor data show. It trails Kingfisher owner United Breweries Ltd., which has 39.2 percent, and Budweiser parent Anheuser-Busch InBev NV, which has 23.3 percent.
Carlsberg started operations in 2007 in India, where it sells five types of beer under the Carlsberg and Tuborg brands, according to its website. It finalized the building of its eighth brewery in the country, located in the southwestern state of Karnataka, at the end of last year, according to its annual report.
Exact details of the potential India offering haven’t been set yet, and there’s no certainty the deliberations will lead to a transaction, the people said. A representative for Carlsberg declined to comment.
Carlsberg’s India sales volume rose more than 30 percent in the quarter ended March from a year earlier, rebounding from a dip caused by the government’s ban on alcohol sales along highways, Chief Financial Officer Heine Dalsgaard said on an analyst call last month. The company’s Tuborg lagers accounted for 81 percent of its net revenue in India last year, according to Carlsberg’s 2017 annual report.