INSUBCONTINENT EXCLUSIVE:
been raided in India as part of an investigation into price-fixing allegations.News agency Reuters reported on Thursday that the Competition
Commission of India (CCI) conducted search and seizure operations at the offices of United Breweries (UB), Denmark's Carlsberg and the
world's largest brewer Anheuser-Busch InBev (AB InBev) in at least two Indian cities.Shares in United Breweries (UB), known for its
Kingfisher brand, closed down 1.3 per cent in Mumbai, as the broader market rose 2.3 per cent on Friday.Investors and analysts said UB
shares were hit by fears that the CCI raids could result in penalties and potentially dent profits in future."This is a highly regulated
market and these are global players
So, allegations of price-fixing are extremely worrying for us," said the head of a fund that owns UB shares, who asked not to be named due
to company policies.United Breweries did not respond to requests for comment.The beer market in India is estimated to be worth nearly $6.85
billion in 2018, according to research firm Euromonitor International, and is expected to grow to $7.39 billion by 2022.In comparison, the
United States, the world's biggest beer market, is expected to generate sales of about $77 billion this year, according to statistics firm
Statista.UB holds more than half the market share in India followed by AB InBev with 22 per cent and Carlsberg with 17 per cent of the
market.Experts say, historically, growth in demand for beer in India has been lacklustre due to a preference for local alcohol
But that has risen in recent years with changing demographics and a growing pub culture in the country.Increasing disposable income has also
boosted demand for both premium and foreign brands, making it a lucrative bet for companies such as AB InBev and Carlsberg.Shares in
Carlsberg were up 0.3 per cent at 6:20 pm on the Copenhagen Stock Exchange, while AB InBev shares were trading down 0.5 per cent in
