Shaw Wallace, SAB float 50:50 JV

NEW DELHI: Mysore Breweries, a subsidiary of SAB Miller India and Shaw Wallace have joined hands to create a 50:50 JV company Shaw Wallace Breweries. While SWBL will look after combined beer brewing interests of Mysore Breweries and Shaw Wallace in India, SAB Miller has paid $132.8 million to Shaw Wallace for picking up 50 per cent stake in the new venture.The relationship between the joint venture partners is governed by a comprehensive shareholders agreement, under which MBL will have operational management control of Shaw Wallace Breweries Ltd. Vidya Chhabria, chairperson of the Shaw Wallace group has been appointed as the chairperson of the new joint venture company. Richard Rushton, managing director of SAB Miller India, will be the managing director for the venture. Komal Chhabria Wazir of the Shaw Wallace group has been appointed to the board of SAB Miller Asia BV. This places the new company in a commanding position in the strong beer segment with both leading brands Haywards and Knock Out within its portfolio. The strong-beer segment dominates the beer market in India with nearly 63 per cent share of the total market, which again is growing rapidly. The company has a very prominent position in the mild beer market also. The JV plans a national manufacturing grid with 11 owned and 11 contract breweries all over India. Among other things, the JV will set up sales and distribution infrastructure, in all regions in the peninsula which is the core beer market in India. The JV will also establish a balanced and recognised brand portfolio with the ability to leverage all brands off a wider and stronger base and access to a wide range of brands, processes and technologies from SAB Millers global footprint.