The fifth largest brewer in the world, Molson Coors is buying 51% stake in Cobra India, making it a late entrant into one of the fastest growing beer markets in Asia.
The NYSE-listed company, whose brands include Coors Light, Molson Canadian and Carling is investing $35 million in Cobra India, which will be christened as Molson Coors Cobra India. Karan Bilimoria, the founder chairman of Cobra Beer, will hold the remaining 49% in the new JV.
This investment includes stake-purchase and capital expenditure for expanding the company's brewery in Bihar. In 2010, Bilimoria had sold 51% in the fledgling Cobra India to New-York based private equity fund Brahma Management and Katyal family, which has brewing interests in Bihar. In a statement, Molson Coors said that it will purchase a controlling stake of Cobra India from existing shareholders and will have operational control over the company.