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India: The United Breweries (UB) Chairman, Mr Vijay Mallya, said on September 28 he has received several unsolicited expressions of interest from leading global brewers to pick up stake in the company, The Hindu Business Line revealed.

The same will be placed before the board of company when it plans to induct a strategic foreign partner, Mr Mallya told the media on the sidelines of the company's annual general meeting.

However, he did not disclose the name of interested suitors stating there were several of them.

Mr Mallya's statement comes in the wake of UK brewer Scottish & Newcastle (S&N) pumping in Rs 250 crore into the company through Redeemable Optionally Convertible Preference Shares and ECB route.

UB also has a joint venture company - Millennium Alcobev Ltd - with S&N where both the partners hold 40 per cent stake each.

While signing up with S&N in 2001, Mr Mallya had stated that the UK brewer could convert the cash advanced to UB into equity stake based on a valuation at a future date.

"We have an excellent relationship with S&N and we would like to take them as our partner. But I cannot hide my board the fact that we have received expressions of interest from many other brewers," Mr Mallya said while replying to a query whether UB would take the bidding route to induct the foreign strategic partner.

UB, with annual beer depletions of over 33 million cases, accounts for 40 per cent share of the overall domestic beer consumption.

"Every third beer consumed in India is Kingfisher, which is the company's flagship brand," Mr Mallya said.

He said SABMiller's acquisition of Shaw Wallace Breweries, the country's second largest brewer, in May last year had positive overtones for the industry, as the global brewer was a more responsible competitor, which wanted to do business in a profitable manner.

"They are the world's third largest brewer. They are a formidable and a more responsible competition," Mr Mallya said while claiming that there was co-operation between UB and SABMiller on tackling key problems confronting the industry.


29 September, 2004