Anheuser Busch Inbev (Sabmiller) India Limited Unlisted Shares

About Company

Anheuser Busch InBev India Limited is engaged in the brewing, packaging, distribution, marketing, and sale of beer in India. The company traces its origin to November 1988, when it was incorporated as SKOL Breweries Limited. It was later renamed SAB Miller India  Limited in 2012 and subsequently became Anheuser Busch InBev India Limited following the global acquisition of SABMiller Plc by AB InBev SA/NV in October 2016.

The company is the Indian operating arm of Anheuser-Busch InBev SA/NV, the world’s largest beer company headquartered in Belgium, with a portfolio of 500+ beer brands and operations across North America, Latin America, Europe, Africa, and Asia Pacific.

AB InBev India is currently the second-largest beer player in India in terms of both volume and value.

Business Model & Product Portfolio

The following explains the operating model and product segmentation of Anheuser Busch InBev India Limited.

The company operates a multi-segment beer portfolio, catering to mass, premium, and value consumers across India. Brand segmentation (FY20 Revenue Mix):

• Core Segment (73%): Haywards, Knock Out, Royal Challenge
• Core Plus (3.6%): Beck’s
• Premium (20%): Budweiser (Premium, Magnum, Super Premium, King of Beers),
  7 Rivers Machaa, 7 Rivers Veere, Redback
• Value (2.8%): Fosters
• Non-Alcoholic Beverages (<1%): Budweiser 0.0, Hoegaarden 0.0 (currently imported)

The company also focuses on non-alcoholic beverages as a long-term growth area, aligned with global consumption trends.

Manufacturing & Operations

The following outlines Anheuser Busch InBev India Limited’s operational footprint:

• 10 owned breweries across Telangana, Andhra Pradesh, Karnataka, Rajasthan, Maharashtra, Haryana, Madhya Pradesh, Uttar Pradesh, Odisha, and Kerala
• 3 contract breweries for outsourced production
• Majority volumes sold in Telangana, Rajasthan, Karnataka, and Uttar Pradesh
• Only 2 breweries (Karnataka and Haryana) have the capability to produce Budweiser domestically
• As of March 31, 2021, only three breweries were operating at utilisation levels above 60%

Market Position

The following describes the competitive positioning of Anheuser Busch InBev India Limited.

• Second-largest beer manufacturer in India
• Strong presence in mass and premium beer categories
• Competes primarily with United Breweries (Heineken India)
• Exposure to state-wise liquor policies, pricing controls, and distribution regulations

Financial Review 

The following provides a high-level financial overview based on available disclosures.

• Revenue is largely driven by core mass brands, contributing over 70% of FY20 revenues
• Premium and super-premium brands contribute approximately 20% of revenues, supporting margin expansion
• Operations are highly impacted by state-level regulations, excise duties, and periodic sales restrictions
• Capacity utilisation remains sub-optimal across most breweries
• Growth in FY20-21 expected to remain single-digit, impacted by regulatory curbs in Kerala, Andhra Pradesh, and Karnataka, which together account for nearly 25% of India’s beer consumption.

Recent Developments & Growth Initiatives

The following highlights key strategic updates.

• Microbrewery Expansion (2019): Entered an agreement with Indian Hotels Company Limited (IHCL) to set up 15 microbreweries across premium hotel properties over five years
• Investment Commitment: Parent AB InBev announced plans to invest ₹1,000 crore over five years in India
• Product Innovation: Expansion into craft beer (Machaa, Veere) and non-alcoholic beverages (Budweiser 0.0)

Subsidiaries & Group Structure

The following explains the group structure:

• The company earlier had two wholly-owned subsidiaries:
  • SPR Distilleries Private Limited
  • Crown Beers India Private Limited
• Both subsidiaries were amalgamated into the parent company in 2018

Challenges

The following outlines key risks and challenges.

• High dependence on state excise policies
• Frequent regulatory changes impacting volumes and pricing
• Low capacity utilisation across manufacturing units
• Intense competition from United Breweries
• Sensitivity to consumption restrictions and taxation changes

Quick Summary

This section summarises Anheuser Busch InBev India Limited in brief:

• Indian arm of the world’s largest beer company
• Second-largest beer manufacturer in India
• Strong mass and premium brand portfolio
• Backed by a global parent with long-term India investment plans
• Growth is influenced heavily by the regulatory environment