SWC is facing a hostile takeover threat from the Bangalore-based beer baron, Vijay Mallya.
An industry observer said, "The Jumbo group has been witnessing changes with the Chhabria family deciding to sell its entire stake in SWC. If Mallya manages to get shares in the holding company, he would have a say in the beer business, which will be a discomfort to the foreign partner."
But Nigel Fairbrass, head of media relations, SABMiller Plc, Business Standard from London, "The management control in the Indian arm vests with SABMiller and so do the ownership rights."
The SABMiller spokesperson said he would not like to speculate on the impact of future changes at SWC, if any. "We will take a call at that time," he added.
The Chhabrias struck a partnership with SABMiller in 2003, when the latter acquired a 50 per cent stake in Shaw Wallace Breweries for $132.8 million (Rs 625 crore).
It is understood that SABMiller can exercise its option of buying out the partner any time within five years of striking the deal.
Sources said though SABMiller has the time to exercise its call option, it will increase its holding in the company much earlier.
While refusing to comment on the issue, the spokesperson said, "We currently enjoy a good relationship with SWC and they are a supportive partner. The Indian market was attractive and that's the reason we made the investment and we are still committed to the market."
The United Breweries group is the largest beer maker in the country, with brands such as Kingfisher, London Pilsner, Zingaro, Sandpiper in its fold.
SABMiller is the second largest brewer and enjoys a market share of approximately 35 per cent. SABMiller and the UB group have been aggressively expanding their business in India.
In 2000, the UB group pipped SABMiller to buy out Associated Breweries & Distilleries-- which owns the London Pilsner brand. SABMiller has been consolidating its business through acquisitions.
It acquired Narang Breweries, Mysore Breweries and Pals Distilleries.
