Cobra Beer CEO Karan Bilimoria at the launch of his book Bottled for Business in New Delhi on Friday. (PTI)

New Delhi, May 18: The UK-based Cobra Beer will invest Rs 120 crore in setting up breweries in Punjab and Andhra Pradesh and is eyeing a 10 per cent share of the Indian beer market.

UK’s fourth-largest beer company will start production from the new facilities in 2009. Each facility will have a capacity of three million cases per year. Each case has 12 bottles.

Cobra Beer has captured a 2 per cent share of the beer market in India in two years. Chief executive Karan Bilimoria said, “In the next five years we plan to have a 10 per cent share of the market.”

Cobra now sources beer from Mt. Shivalik in Rajasthan, Impala in Goa, Iceberg in Patna and Manav in UP. The arrangement with these local producers will continue as Cobra is expecting an increase in volumes.

The Cobra and King Cobra beer is available in India. Cobra has 5 per cent alcohol while the more popular King Cobra has 8 per cent alcohol content. Cobra and King Cobra have a sales ratio of 40:60. Last fiscal, the sales of both combined was half a million cases. This year it is expected to go up to three million.

Cobra is also planning to launch a red and a white wine in October under the General Bilimoria brand. In the UK it offers 10 varieties.

The company will not import the wines from the UK because excise duties are very high. It will source grapes from India and process them here through the third-party contract mode.

The wines, which will be sweeter, will be launched in Bombay, Pune, Bangalore, Goa, Rajasthan and Chandigarh.