Today, the beer consumption in India is tiny relative to the size of the country and the population of more than 1 billion. The market size is a mere 8 million hectolitres and the consumption per capita less then 1 litre.

The traditional alcoholic beverage in India is whisky. Also, strict regulation limits the opportunities to transport beer across the country. However, there are signs the tide is turning: beer consumption has grown at double-digit rates over the last five years.

The developing young middle class has an increasing taste for beer and the purchasing power to buy it. In addition, beer better suits the warm climate than spirits. And unlike in China, the price level is healthy and the consumer has a clear understanding of premium beer. Deregulation is also gaining momentum. The key beer consuming states are Andhra Pradesh (13 per cent of the market in terms of value), Maharashtra (16 per cent of market value), Tamil Nadu, Karnataka, Rajasthan and Uttar Pradesh.

Through Asia Pacific Breweries, Heineken entered India, purchasing a majority stake in Aurangabad Breweries, which owns a brewery in Aurangabad, Maharashtra. We also created a company, Asia Pacific Breweries-Pearl Private Ltd., with the aim to build a new brewery in Hyderabad, Andhra Pradesh, with an initial capacity of 250,000 hectolitres. Imported Heineken beer is already available in India.

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