AB InBev is increasing investments in brewing production in India.
Since the acquisition of SABMiller assets in 2016, AB InBev's total investment in India has reached $1.5 billion. On average, the company allocates more than $25 million annually to modernize breweries and accelerate canning lines. An additional $10 million was allocated to localize the production of Corona and Hoegaarden brands, and planned investments in Rajasthan are estimated at $20 million.
The company's strategy directly depends on regional policy. In the states of Maharashtra and Karnataka, changes in taxation, pricing, and retail are fostering investment growth. Specifically, in Rajasthan, the company resumed plant operations after a seven-year hiatus caused by unfavorable tax conditions and logistical difficulties. At the same time, in regions such as Uttar Pradesh and Odisha, the inability to raise prices amid rising costs is hindering business development.
In the company's portfolio, the premium and super-premium segments, which include Budweiser, Budweiser Magnum, Corona, and Hoegaarden, account for about 60% of the market. It is expected that their share in the company's business will grow to 75% over the next three to four years. AB InBev is actively switching to the use of cans, which account for 40% of the company's sales. This decision is driven by both economic factors related to the difficulties of returning glass containers and by consumer demand.
According to AB InBev estimates, annual beer consumption in India is 36.7 million hectoliters, with the company's market share reaching 20%. According to Kartikeya Sharma, President of AB InBev India, stable state policies will allow the industry to grow significantly over the next five years. Currently, India is the third-largest market for the Budweiser brand and ranks among the top 15 largest beer markets in the world.