Carlsberg has unveiled plans to invest approximately Rs3.5bn ($40.2m) to expand its brewery in the Indian city of Mysuru.
This expansion is part of a memorandum of understanding signed by the company with the state government of Karnataka.
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In a statement, Carlsberg said the investment would help to expand the site in Mysuru by adding a new can, glass and keg line. The company told Just Drinks the additions would be used to support existing products on sale in India for the time being.
The 1664 brewer added the expansion will “boost capacity” and enable it to “better meet consumer demand”.
The Mysuru brewery, which is spread across 28 acres, has an annual production capacity of 80 million litres and manufactures Carlsberg and Tuborg products, mainly for the local Karnataka region.
Carlsberg expects to double the site’s capacity to 160 million litres a year following the investment.
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By GlobalDataNilesh Patel, managing director of Carlsberg’s business in India, said: “Karnataka is a key market for Carlsberg India, and this expansion underscores our long-term commitment to the state.
“Our investment will not only support economic growth but also generate additional employment opportunities in the coming years.”
This investment follows the group’s purchase of its remaining shares of its joint venture (JV) partner in Carlsberg South Asia Limited (CSAPL) from the India-based Khetan Group.
CSAPL oversees Carlsberg’s Indian operations and the Gorkha Brewery business in Nepal.
Carlsberg was expected to pay $744m for Khetan’s 33.33% stake in the JV, completing the deal in November.
The group now owns 100% of the Indian business and 99.94% of the Nepalese business.
In its 2024 annual report, Carlsberg explained that the full ownership enables it to “accelerate investments in India”.
The brewing major, which entered India in 2007 with its acquisition of a brewery in Himachal Pradesh, said it hoped to increase capacity, expand and develop its portfolio, and grow distribution to “capture the long-term volume and value growth opportunities”.
The business currently manages seven breweries in India, and is focused on Carlsberg and Tuborg in its brand portfolio there.
Discussing its regional performance across its markets in 2024, the company said, “in India, our business had another good year”, delivering volume growth of 12%.
“We achieved growth in most states, supported by good progress for our two largest products – Tuborg Strong and Carlsberg Elephant,” it added.
