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SABMiller plc - Mysore Breweries Limited in New Strategic Joint Venture
SABMILLER PLC
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMILLER"S INDIAN SUBSIDIARY, MYSORE BREWERIES LIMITED, IN NEW STRATEGIC JOINT
VENTURE
London and Johannesburg, 21 May 2003. SABMiller plc announces today that its
Indian subsidiary, Mysore Breweries Limited (Mysore), has entered into a joint
venture with Shaw Wallace and Company Limited (Shaw Wallace). Mysore will, on
completion, hold 50% in a company called Shaw Wallace Breweries Limited (Shaw
Wallace Breweries), which will hold the combined brewing interests and licences
of the two businesses. The cost of the investment is US$132.8 million, being the
book value of the net assets and cash, contributed in exchange for Mysore"s 50%
interest in Shaw Wallace Breweries.
Graham Mackay, Chief Executive, commented: "Shaw Wallace Breweries will be a
powerful new force in Indian brewing. It brings together the local knowledge,
brands and experience of our new partners with our best operating practices in a
combination that will be considerably stronger than the sum of its parts.
"Mysore is now in a position to take advantage of the 11% per annum growth in
the Indian beer market through the joint venture"s leading positions in the key
beer consuming states of India."
Shaw Wallace has produced beer in India since 1974, is the second largest
brewing group in India and currently operates through 7 owned and 11 contracted
breweries situated in key beer producing states throughout the country.
Shaw Wallace"s key brands include Haywards and Royal Challenge. Importantly,
Haywards is the dominant brand in the fast growing strong beer segment.
ENDS
21 May 2003
For further information:
Sue Clark
Director of Corporate Affairs,
+44 (0) 20 7659 0191
SABMiller plc
Mobile: +44 (0) 7850 285 471
Nick Chaloner
Communications Director,
+44 (0) 20 7659 0119
SABMiller plc
Mobile: +44 (0) 7880 502 755
Anna Miller Salzman
Head of Investor Relations,
+44 (0) 20 7659 0106
SABMiller plc
Mobile: +44 (0) 7973 837 070
This announcement is available on the company website, www.sabmiller.com
Notes for editors
1. SABMiller plc
SABMiller plc is one of the world"s largest brewers, with pro forma 2001/02
lager volumes in excess of 124 million hectolitres. It has a brewing presence
in over 40 countries across four continents and a portfolio of strong brands and
leading market shares in many of the countries in which it has brewing
operations. Outside the USA, SABMiller plc is one of the largest bottlers of
Coca-Cola products in the world.
SABMiller plc is listed on the London and Johannesburg stock exchanges.
2. SABMiller in India
SABMiller has operated in India since October 2000, when it bought Narang
Breweries, located near Lucknow, in the state of Uttar Pradesh. In June 2001,
SABMiller acquired a controlling interest in Mysore Breweries Limited, and, in
November 2001, announced the acquisition of a controlling interest in Rochees
Breweries Limited. In India, SABMiller has some 8% of the overall beer market
and its key brands include Castle Lager and Knock-Out.
SABMiller India"s brewing assets were recently merged under Mysore with a
brewing presence in Uttar Pradesh, Maharashtra, Karnataka, and Rajasthan, and it
has recently acquired a licence and an incomplete brewery in Andhra Pradesh.
3. Shaw Wallace
Shaw Wallace has produced beer in India since 1974, is the second largest
brewing group in India and currently operates through 7 owned and 11 contracted
breweries situated in key beer producing states throughout the country. Annual
beer sales volumes of Shaw Wallace are estimated to be 27% of the total Indian
beer market.
Shaw Wallace has built an extensive distribution network in key states covering
some 35,000 retailers and 600 distributors.
Shaw Wallace"s key brands include Haywards and Royal Challenge. Importantly,
Haywards is the dominant brand in the fast growing strong beer segment.
