Calcutta, May 21: Liquor major Shaw Wallace & Company (SWC) today announced a 50:50 joint venture with Mysore Breweries, a subsidiary of the $ 4.2-billion SAB Miller Plc.
The joint venture, to be known as Shaw Wallace Breweries Ltd, will hold the combined beer interest of both the companies, said a statement released by the newly formed company.
Shaw Wallace Breweries would start off as a leading brewer with an estimated market share of approximately 35 per cent.
SWC already has a strong presence in the beer market with brands like Haywards and Royal Challenge. SAB Miller’s Castle Lager and Knock Out enriches the portfolio further.
The joint venture is part of the radical restructuring exercise by SWC, which led to bifurcation of its liquor and brewery businesses.
The relationship between the joint venture partners would be governed by a comprehensive shareholders’ agreement.
Mysore Breweries would have operational management control of the newly formed company, but the two partners would have equal representation on the board.
Richard Rushton, managing director of SAB Miller India, was appointed managing director of the new company. Chairperson of the Shaw Wallace group, Vidya Chhabria, will head the new venture.
“This new joint venture presents major strategic benefits to our brewing operations, allowing us to make investments in upgrading our brewing technologies and expand our operations,” said Komal Wazir, executive director of Shaw Wallace.