Mahou San Miguel takes 100% of Arian

28 April, 2014

Mahou San Miguel (MSM), Spain's leading brewer, has established its first international subsidiary in India through the acquisition of 100% of Arian Breweries & Distilleries. 

The firm is owned by a local family group in which it already held a 50% stake through a joint venture agreement reached in 2012.

Managing director Alberto Rodríguez-Toquero, said: "These have been two very exciting years during which together with our partners we have learned a great deal about the Indian market and consumers.

"We now have the knowledge and experience to take a further step and assume full control of the development of our business in India. Overseas operations will be our main growth lever over the coming years," he said.

The company says this acquisition represents a step change in the MSM’s internationalisation strategy, which set up its international business unit in 2012 with the aim of driving forward an area that over the last five years has seen its proportion of the company's overall sales double.

MSM says it has more than 60 professionals in place in India, along with a brewer located in Bhiwadi (Rajasthan State) covering 64,125 square metres, with an output capacity of 250,000 hectolitres per year. It has a presence in five states around the country through its local brand Dare Devil. Flagship brand Mahou and Andalucian craft beer Alhambra Reserva 1925 will shortly be added to the company´s portfolio in India.

The brewer says it will continue to invest in the Indian market. Erik D'Auchamp, previously the company's director of international marketing, will be based in Delhi as the new Arian’s managing director.

Per capita consumption of beer in India is among the lowest in the world (1.5 litres per year), although as a whole the market is already half the size of the beer market in Spain, where consumption stands at 47.5 litres per capita. MSM says with a young and growing population of some 1.2 billion, expectations for growth of the Indian breweries sector are particularly positive, with expansion of 11% per annum expected over the next three years.

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