| Tue 14 Jun 2005, 9:09 | | SABMiller announces further strategic investment |
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SABMiller announces further strategic investment in India
SABMiller plc
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMiller announces further strategic investment in India
London and Johannesburg, 14 June 2005: SABMiller plc announces its intention to
invest further in India which it has identified as a strategic growth market for
the Group. The global brewing company`s Indian subsidiaries intend to commit in
excess of $125 million in capital expenditure and marketing initiatives over
five years to expand current operations and further develop market-leading
brands in India.
SABMiller recently announced that its Indian subsidiary, MBL Investments,
acquired the Shaw Wallace Group`s residual interest in the brewing operations of
SABMiller`s Indian joint-venture. The Group`s brewing operations comprise 10
breweries across the subcontinent constituting India`s second largest brewer.
Its key brands include Hayward`s 5000, the leading beer brand in the rapidly-
growing strong beer segment; Royal Challenge Premium Lager, the second-largest
mild beer in the country; Knock-Out and the international premium brand Castle
Lager.
Graham Mackay, Chief Executive of SABMiller plc said:
`It is widely known that India is a rapidly expanding economy and represents an
exciting growth opportunity for SABMiller. We firmly believe that a vibrant beer
business will not only contribute significantly to the economic development of
the country, but a well regulated industry will encourage responsibility in the
consumption of alcohol throughout the subcontinent. This can only be achieved,
in our view, by working with the Indian authorities to reform the prevailing
structure and reduce the complexity of the restrictions that are currently in
place.`
Andre Parker, Managing Director of SABMiller Africa & Asia, added:
`Climatic conditions in India are more suited to drinking beer, which is seen as
a healthier alternative, than other alcoholic beverages. While the Indian beer
market has been growing at 6 to 7 percent annually, SABMiller`s brewing
operations in the country have recorded a much higher growth rate of 12 percent
in the last year. With the further investment we are able to upgrade and expand
existing breweries, develop our brands and increase the standard of the barley
farming industry through co-operative initiatives.`
During a visit to Group operations in India this week, Mr Mackay will meet with
government officials and industry leaders to discuss SABMiller`s involvement in
India. He will also inaugurate the completion of a $14 million upgrade programme
at the state-of-the-art brewery in Hyderabad as well as visit local communities.
SABMiller has operated in India since October 2000, when it bought the Narang
Breweries, located near Lucknow, in the state of Uttar Pradesh. In June 2001,
SABMiller acquired a controlling interest in Mysore Breweries Limited.
Subsequently Mysore Breweries Limited has made other acquisitions in other
brewing operations in India and later in May 2003, Mysore Breweries Limited
entered into a strategic 50:50 joint venture with the Shaw Wallace Group of
India.
Notes to editors:
SABMiller plc
SABMiller plc is one of the world`s largest brewers, with 2004/05 lager sales
volumes in excess of 148 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.
In the year ended 31 March 2005, the group generated US$2,194 million pre-tax
profit from a turnover of US$14,543 million. SABMiller plc is listed on the
London and Johannesburg stock exchanges.
The Indian Beer Market
Currently, the total Indian beer market is still small with annual sales of
around 7 million hectolitres, but has been growing rapidly over the last 10
years. This trend is continuing and overall market growth is estimated
currently to be some 6% - 7% on an annualised basis. The Indian brewing
industry remains highly regulated and beer is categorised with other alcoholic
products for licensing and taxation purposes.
Strong beer (alcohol by volume of 5% - 8%) accounts for 65% of the total beer
market and the key beer consuming states are Andhra Pradesh, Maharashtra, Tamil
Nadu, Karnataka, Rajasthan and Uttar Pradesh. Per capita consumption of 0.7
litres is low, emphasising the significant growth potential in a country with a
population in excess of one billion people.
Key drivers of high growth include rising gross domestic product, favourable
demographics, changing lifestyles, and the opportunity to grow per capita
consumption together with potential deregulation of the Indian beer industry.
This announcement is available on the SABMiller website, www.sabmiller.com
High resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk
Enquiries:
SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Vice President, Investor Tel. +44 20 7659 0119
Relations Mob: +44 7717 428540
Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105
Mob: +44 7799 894265
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
`Company`) or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes `forward-looking statements`. These statements may
contain the words `anticipate`, `believe`, `intend`, `estimate`, `expect` and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company`s financial position, business strategy, plans and
objectives of management for future operations (including development plans and
objectives relating to the Company`s products and services) are forward-looking
statements. These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by such forward
looking statements. These forward-looking statements are based on numerous
assumptions regarding the Company`s present and future business strategies and
the environment in which the Company will operate in the future. These forward-
looking statements speak only as at the date of this announcement. The Company
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this announcement to
reflect any change in the Company`s expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.
Any information contained in this announcement on the price at which the
Company`s securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.
Date: 14/06/2005 09:00:07 AM
Produced by the JSE SENS Department
