Danish brewery Carlsberg is to invest Rs 200 crore ($32.9 million) in India in an attempt to revive its sales in the country, the Economic Times reports.
The investment is designed to increase the popularity of its products and help it compete with other major players including Heineken, United Breweries and SABMiller. Currently Carlsberg only has a market share of 8% in India – its lowest share of any of the markets in which it operates – and reported a loss in the country of Rs 168 crore ($27.65 million) in 2012.
In a market where strong beers are demanded, Carlsberg has focused efforts on its Tuborg Strong and Elephant brands. However, according to sources, Tuborg was launched as a premium brand and Carlsberg was forced to slash prices to compete with local products, resulting in a decline in profits.
Carlsberg’s rivals are also stepping up their investment in Asia Pacific, which represents 35% of the global beer market. SABMiller invested $77 million last year to expand its own capacity and portfolio in India.
Source: Economic Times