Hunter beer maker joins realty play with Madhya Pradesh land buy
The Bhopal-based Som Distilleries and Breweries, manufacturer of the Hunter beer, has acquired a 50-acre prime plot in Gwalior for Rs 266 crore from the Madhya Pradesh government.
The project, called Thatipur Gandhi Road Project, is a 60:40 collaboration with Patel Engineering and marks the brewing company���s foray into realty business. Sompel, the company in charge of the project, is promoted by Som Distilleries.
���The project is expected to generate a valuation of Rs 2,500 crore in three years. This project will boost the growth of the company further,��� Som Distilleries��� chairman and managing director JR Arora said.
The project is part of the state government���s housing scheme for its employees, wherein the builder is required to construct a certain number of houses.
The cost of the project will be deducted from the amount to be paid to the government, on account of acquisition of the land on a 90-year lease. The project will cost around Rs 100 crore, and will be financed through internal accruals, financing from customers, institutional borrowings, etc, Mr Arora said.
The bid comes as a breakthrough for Som Distilleries, which has been looking for opportunities to diversify from the brewing and distilling business. The Rs 200-crore company, which introduced the concept of strong beer in India, has plans to venture into the South Indian beer market.
Though it controls 12% of the country���s premium beer market, the distribution has been limited to the North Indian market up till a few months ago. Now the company is planning to access brewing facilities through bottling contracts, acquisitions and greenfield projects in southern markets.