Carlsberg is to start its 11th production in India. The company announced a contract manufacturing association with NEFA Breweries in Arunachal Pradesh. Arunachal Pradesh is the most north-eastern of all twenty-nine states of India and is bordering countries like Tibet (China) in the north, Bhutan in the west and Myanmar in the east.
Once finished, the state-of-the-art brewery will operate the first beer production in Arunachal Pradesh. The site will be located in Naharlagun just 10 km from the capital city of Itanagar. Sanjay Dewan, Managing Director, NEFA Breweries said, “We are happy to set up the first brewery in the State and look forward to adding to the economic development and industrialization of the State.”
Michael N Jensen, Managing Director, Carlsberg India, commented on the cooperation with NEFA Breweries: “This association will not only help us augment our capacity in the region, but will also help us strengthen our presence in the Northeast market.”
Carlsberg is the third largest beer producer in the country, with a share of 15.7% of the market. Market leader with 52% is Kingfisher, in which Heineken holds a 42.4% minority interest, followed by AB InBev with a 25% market share. Carlsberg’s brand Tuborg is currently the second largest selling brand in India, after Kingfisher.
The Danish brewer entered the Indian in market in in May 2006 and is running today seven breweries and three co-manufacturing associations across the country. The company had last year to close a new $25 million brewery in the Indian state of Bihar only three years after the inauguration, due to an alcohol ban in Bihar. The production loss will be more than compensated by a new 800,000 hectoliter brewery in Mysuru district of Karnataka, which will be Carlsberg largest production site in India and which starts production this year.
According to a statement published on the website of Carlsberg India, “India is one of the fastest growing markets for the beer industry. Given the fact that the per capita consumption is amongst the lowest in the world at 1.3 litres per annum, the growth opportunity is immense. The country has a huge consumer base and disposable incomes are increasing which makes it an attractive market for the future.”