Hyderabad's beer mkt to grow to $150m by 2011

By Viswanath Pilla  & Vivin Mathew , CNBC-TV18

 

Hyderabadi beer guzzlers have a reason to smile. Now they need not experience beer shortages anymore because the Nizam city is fast becoming the hub of MNC breweries. Hyderabad is indeed becoming the emerging beer capital of India.

 

Hyderabad is famous for its Biryani, and the city is now brewing lots of beer to gulp. Foreign breweries are rushing to Hyderabad to claim a pint of the most lucrative beer market in the country. 

 

In the last two years, four brewing giants like South African-based Sab-Miller, US-based Anheuser-Busch, UK-based Cobra and recently Singapore-based Asia-Pacific Breweries have set up shop in Hyderabad.

 

CNBC TV18 learns that Belgian-based InBev and Danish-Carlsberg may also well be on their way .

 

The reason for breweries rushing to Hyderabad is the incentives companies receive from the government- land and water. The state is accomodating as it wants to earn revenues of Rs 10,000 crore from alcoholic beverages by 2008-09.

 

Vivek Chhabra, Regional Director, South Asia Pacific Breweries said,"The attitude of the government is very positive in welcoming foreign investment and also the availability of water and land in the state. It is a good mix and a friendly environment to do business."

 

What also works in the city's favour is that Hyderabad gulps 10 -12 % of the beer consumed in the country. Last year, Hyderabad devoured 14 lakh hectoliters of beer, and this market is estimated to grow to USD 150 million by 2011.

 

With a large young population, a hot climate for most of the year and government's inclination to promote milder drinks such as beer over spirits, the future of the Hyderabad beer business certainly looks to be zooming.

 

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