Singapore-based Asia Pacific Breweries (APB) plans to set up a greenfield brewery in Andhra Pradesh, through a joint venture partnership with Jaipuria Beverages & Food Industries Private ("Jaipuria"), which is associated with the Jaipuria Group, one of the largest manufacturers of soft drinks in the country.
The new joint venture company of which APB holds the majority stake of 67 per cent, is called Pearl Breweries Private (PBPL). It will build a greenfield brewery with an initial capacity of 2,50,000 hectolitres just outside Hyderabad. The brewery is expected to commence operations by end-2007. The initial investment in PBPL is estimated to be $15 million, out of which the equity contribution is estimated to not exceed $10 million, which will be contributed by APB and Jaipuria in proportion to their respective shareholdings. APBs contribution will be funded through a combination of internal resources and external borrowings.