Carlsberg signs manufacturing agreements to strengthen operations in Maharashtra and Jharkhand

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MUMBAI: Danish brewer Carlsberg has signed two new contract manufacturing agreements to strengthen its operations in Maharashtra and Jharkhand.

The company has partnered with Lilasons Industries in Maharashtra and Pali Hills Breweries in Jharkhand to further increase its capacity and footprint in the states.

Carlsberg India Managing Director Michael N Jensen said the company has seen significant growth from both the states over the last few years.

“While Maharashtra is a growing market for Carlsberg India and this association is a step towards strengthening our operations in the state; our association in Jharkhand is aimed at ensuring that our focused brand portfolio is available to our consumers in the region,” he added.

Lilasons Industries has made significant investments in equipment, automation and processes to upgrade brewery operations in Maharashtra to ensure global quality standards, said Carlsberg in a statement.The brewery will manufacture Carlsberg Elephant and Tuborg Strong.

Pali Hills Breweries, which presently has a production capacity of 0.2 million hectolitres per annum, would manufacture the Carlsberg and Tuborg brands.

In 2015, the state government in Bihar had decided to ban liquor in the state, which led to the company’s revenues falling and forcing it to consider pulling out, since there was no backup plan for this unexpected move.

And now with the ban on National and the state highways liquor companies will be barred from selling beer closer to 500 meters that involves half of the total 66000 liquor outlets in the country. The company said the ban would not only reduce the number of point of sale but also impact sales volumes.

Carlsberg sells a range of brands, including Carlsberg Green and Carlsberg Elephant, Tuborg Green and Tuborg Strong in India. It is the third largest beer maker in the country with 16% market share. Carlsberg India volumes were up by 16% in the December quarter