Carlsberg Turns Profitable in India

According to TechSci Research recent report India Coffee Shops / Cafés Market Forecast, 2021 market for Coffee Shops/Cafés in India is projected to grow at a CAGR of over 11% during 2016 - 2021. Beer and other alcoholic drinks are expected to get a modest share in these cafes in coming years as these cafes are forecast to attract large number of alcoholic drinkers into cafes.

Carlsberg the Dutch beer company which entered Indian market in year 2006, has managed to become profitable in the country. Currently United Breweries controls around 50% share in the market followed by SABMiller at 23% and Carlsberg with around 15% share. The company witnessed a surge in demand for its strong beers which helped company to report a profit in the period of October- December as the business grew 42% in the country. The company was working on cost control and volume growth; and increase in profit depicts that both strategy have been successful.

The company invested 200 crores in the Indian market couple of years ago to become a big player in the India’s competitive beer market which is dominated by home grown Kingfisher brand. Company’s Tuborg Strong and Elephant brands accounted for 80% of overall beer sales in the country which is in sync with company’s strategy to sell strong beer in Indian beer market.      

According to TechSci Research, Beer market in India is forecast to see intense competition among these top players as Carlsberg’s success will put United Breweries and SABMiller under pressure. They will need to come up with new product innovations in order to maintain their existing market share. This competition might benefit the beer drinkers who might see price reductions and more product offerings.