Cobra Beer, the UK-based brand owned by non-resident Indian entrepreneur Karan Bilimoria, has announced the launch of its drinks brewed in the country for the domestic market.
Cobra Beer, which till recently was importing beer from the UK, had entered into a contract manufacturing arrangement with Mount Shivalik Industries Ltd (MSIL).
Cobra Beer had invested $1 million to upgrade MSIL's plant located in Rajasthan. The local manufacturing would enable Cobra to significantly bring down the price of a 330 ml bottle of premium beer from Rs 100 to Rs 30 in Delhi.
"MSIL will initially brew the beer for all the markets in which Cobra is currently available, until brewing in further facilities throughout India is commenced in due course. Keeping India's large beer market in mind, Cobra is also planning to extend its relationship with Mount Shivalik to include brewing facilities in Punjab and Maharashtra," said Karan Bilimoria, chief executive officer, Cobra Beer.
He is also planning to set up a greenfield project in Andhra Pradesh with a proposed investment of $10 million.
"We are entering the market at a time when beer consumption in India is going to shoot up. For a super premium beer, Cobra is very affordably priced and we hope capture a sizable portion of the Indian market," he added.
To side-step the government regulation which prevents alcohol companies from advertising their products, Cobra would also bring in its non-alcoholic beverage into India.
"We have appointed Lowe as our creative partner in India and a campaign is in the offing," said Bilimoria.
Marketed as an Indian beer, Cobra is currently one of the fastest growing beer brands in the UK with retail sales in excess of $120 million, and relies heavily on the network of nearly 7,000 Indian restaurants in the country.
It had recently entered key markets like the US and South Africa. "With impetus coming from fast emerging markets like India, we are targeting revenues of $1 billion in the next ten years," he said.
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