E-Malt.com News article: Pakistan & India: Pakistan’s Murree Brewery looking to expand worldwide through a partnership in India

Pakistan’s premier spirit maker is looking for a partner in India to sell its malt beverage in the neighbouring country and harness international exports from there, as export of alcoholic drinks from Pakistan is banned, Dawn.com reported on December 5.

“We gave a franchise to a company over a year ago but that deal has not really materialised so far,” Sabihur Rehman, special assistant to the chief executive of the Murree Brewery Company, said.

“But we are being approached by many Indian firms and a serious discussion is under way with a large Chandigarh-based distribution company, which wants a brewing franchise.”

Murree Brewery was among the foremost companies to develop partnership in India, taking advantage of a liberalised investment regime approved by the Indian government in July last year.

Under the agreement, Murree Brewery allowed Rahul Chandra of Bangalore-based Elpha Engineering and Project to produce and market its beer in India.

However, Mr Chandra has not been able to make any headway and after waiting for more than a year Murree Brewery has decided to look for another partner.

Although the company also produces vodka, gin and rum, its prime brands are single malt whiskies.

“But our speciality is beer as the company has been producing it since 1860,” Mr Rehman said.

The company had been getting good response from its joint venture in the Czech Republic, he said.

Under the agreement, Murree Brewery has not invested in India but its brand will be marketed by Elpha Engineering, which also has a brewery business.

Murree Brewery has decided not to repatriate the profits gained from India and invest them in its overseas ventures.

Since export of beer is not allowed, the orders are to be met from overseas ventures.

The largest order for its beer has been placed from the United Arab Emirates.

Orders have also been received from Denmark and Norway, which were supplied from the Czech Republic, whereas the company is vying to market its products in Afghanistan from the European venture or India.

The liquor sales in the country have also been on the rise and in the first three months of the current fiscal year the company registered sales worth Rs1.14 billion compared to Rs867.11 million in the corresponding period of last year.

The sales figures from the European venture have not been encouraging, but the company expects better business soon after the economic recession there is over.

“We are getting queries from many countries, including from North America, and the first question they ask is are we really in this business in Pakistan,” an official of the company said.


06 December, 2013