Danish multinational brewing giant Carlsberg A/S is evaluating a public offer of its Indian subsidiary, in what could be one of the most high-profile listings from the alco-bev sector in recent years. According to reports, the brewer has already invited a clutch of global investment banks—BofA Securities, Citi, Deutsche Bank, JPMorgan, and Morgan Stanley—to pitch for the mandate.
Carlsberg India IPO: Early Talks, Global Banks in the Fray
Discussions remain in the early stages, with no final decision yet on valuation, timing, or stake dilution. Some insiders note that Carlsberg has been weighing an Indian listing for nearly two years, with “attractive market multiples” serving as a key driver.
Should the Carlsberg India IPO materialize, it would underscore the growing trend of multinational corporations tapping into India’s vibrant capital markets—a trend accelerated by the blockbuster debut of Hyundai Motor India in 2024, followed by listing plans from LG Electronics and Orkla.
Strong Financial Tailwinds
Carlsberg India’s numbers add weight to the IPO buzz. The company crossed the INR 8,000 crore revenue milestone in FY24 (INR 8,044.9 crore), registering a 15.2% year-on-year growth, while net profits surged 60.5% to INR 323 crore.
The brewer’s cash and bank balances rose from INR 930.4 crore to INR 1,116.5 crore, aided by leaner capital spending and sharper working capital management. Excise outgo climbed 13.4% to INR 4,877.8 crore, while advertising expenses touched nearly INR 97 crore.
Carlsberg’s Deep Indian Roots
While Carlsberg formally entered India only in 2006, when it incorporated South Asia Breweries (renamed Carlsberg India in 2009), Indian consumers have been sipping Carlsberg for over a century. In 1912, Madras-based McDowell & Co. ordered the first recorded shipment—ten cases each of Carlsberg Munich and Pilsener beer.
The modern journey began in 2007, when Carlsberg acquired its first brewery in Paonta Sahib, Himachal Pradesh, and launched Carlsberg Green. Over the next decade, it expanded rapidly:
- 2008–09: Breweries in Alwar, Aurangabad, and Hoogly; Tuborg Green launched.
- 2010–11: Tuborg Strong and Carlsberg Elephant introduced; fifth brewery at Sangareddy.
- 2013–14: Sixth brewery in Dharuhera, Haryana; seventh in Patna, Bihar.
- 2017–18: Tuborg Classic launched; brewery in Mysuru, Karnataka established.
Today, Carlsberg operates seven breweries across India, covering 32 markets, and holds the No. 2 position in the beer industry with a 21% share.
Portfolio & Market Position
Carlsberg’s India line-up spans both mild and strong beer segments, led by Carlsberg Green, Carlsberg Elephant, Tuborg Green, Tuborg Strong, and Tuborg Classic. With this portfolio, Carlsberg competes head-to-head with United Breweries (Heineken-controlled, INR 47,470 crore market cap) and AB InBev, which markets Budweiser and Corona in India.
The company is also investing in capacity expansion, notably doubling its Mysuru brewery’s output with a INR 350 crore investment. In parallel, Carlsberg opened an IT Global Capability Centre in Gurugram in 2024, underscoring its strategy to make India both a production and digital hub.
Strategic Consolidation
In late 2024, Carlsberg consolidated its regional business by acquiring its partner’s 33% stake in CSAPL (India) and 9.94% in Gorkha Brewery (Nepal), giving it near-total ownership of both businesses. The move gives Carlsberg greater control to scale up investments in branding, distribution, and capacity.
Carlberg India IPO Context
Global peers are closely tracking the Indian capital market opportunity. Hyundai Motor India’s INR 27,870.16 crore IPO in 2024, the country’s largest, has seen its stock soar over 60% in six months. That success story has emboldened other global majors—LG Electronics, Orkla, Apollo-backed Tenneco India—to explore Indian listings.
In the alco-bev space, Sula Vineyards, Allied Blenders and Distillers, and Monika Alcobev have already tapped the markets, while Tilaknagar Industries’ INR 4,150 crore buyout of Pernod Ricard’s Imperial Blue whiskey brand highlights accelerating M&A activity.
A Legacy Brewed in History
Globally, Carlsberg’s story stretches back to 1847, when founder J.C. Jacobsen established the brewery near Copenhagen, naming it after his son Carl and the Danish word for hill, “bjerg.”
From pioneering breakthroughs like the pure yeast culture (1883) and the pH scale (1909) to its iconic “Probably the best beer in the world” slogan (1973), Carlsberg has combined science, branding, and brewing artistry to become one of the world’s largest beer groups, now spanning over 140 brands across 150 markets.
In India, what began as a few cases of imported Carlsberg in 1912 has grown into a INR 8,000 crore enterprise with seven breweries, a rich portfolio, and a firm foothold in the country’s beer culture.
Outlook: A Toast to the Future?
Carlsberg India IPO plan remains at an exploratory stage, but the potential listing of Carlsberg India could be a landmark moment. It would not only give investors access to the country’s second-largest beer player but also signal confidence by another global consumer giant in India’s growth story.
With rising urbanization, a young demographic, and increasing acceptance of beer, India is already one of Carlsberg’s “key growth markets,” as highlighted in its annual report. If the Carlsberg India IPO materializes, it would be both a culmination of Carlsberg’s century-long ties with India and a launchpad for its next phase of expansion.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.