SABMiller sees profit decline in Indian operations

Bangalore, Aug. 21

SABMiller, which makes Foster’s beer, has seen a decline in profits from its Indian operations during 2007-08 but is setting up a one million hectolitre capacity brownfield brewery in Haryana this year.

The beer maker says that it may also incur a loss of around Rs 41 crore during the current fiscal as the cost of malt and fuel have gone up nearly 100 per cent and because of higher depreciation and interest costs. However, SABMiller is expected to return to profits posting about Rs 20 crore during 2009-10, according to a report released by the company.

A SABMiller spokesperson was not available for comment. The report also said SABMiller has restructured its organisation in India to make it more responsive to the current market conditions.

SABMiller and its competitor United Breweries collectively have over 90 per cent of the share of the beer market in India. For 2007-08, SABMiller’s net profit declined 14 per cent to Rs 34.4 crore while net turnover grew 25 per cent to Rs 1087 crore. United Breweries managed to nearly maintain its net profit to around Rs 55 crore while total income grew nearly 39 per cent to Rs 1591 crore during the same period, according to the Bombay Stock Exchange Web site.

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