Som Distilleries in talks to raise $30 million

MUMBAI: Bhopal-based beverage companySom Distilleries and BreweriesBSE 0.70 %, maker of Hunter beer, is in talks with European investment bank Bryan, Garnier & Co, for an investment of $30 million (Rs 164.4 crore) in the company.

The beverage company will use the money for making strategic acquisitions and development of greenfield breweries and distilleries, according to people familiar with the matter.

"I cannot give out any numbers of the Som deal. These are confidential details that cannot be divulged at this point of time," Gaurav Juneja, country head of Bryan, Garnier & Co, told ET.

Juneja also said that the investment bank is advising Som Distilleries on various options for raising funds needed to give the company's beer and spirit brands a pan-India presence.

JK Arora, chairman of the group, too declined to share details of the deal. But people in the know said the investment will be based on the spot price of shares, and talks are almost at the concluding stages.

Som Distilleries has a presence in markets such as Madhya Pradesh, 
Chhattisgarh and parts of North India, with more than 40% market share in Madhya Pradesh and Chhattisgarh while 6-7% in Delhi & Odisha. The company, at present, exports its products largely to African nations.

The Indian beer market is over 260 million cases a year in which 
United Breweries, that makes Kingfisher beer, is the largest player with a 50% market share.