Motilal Oswal
Carlsbergs main brands in India Tuborg and Carlsberg, reported a volume growth of 17% and 31% YoY, respectively, in CY18. The improvement in price/mix was driven by robust growth of the brand and improved pricing (we believe pricing refers to the 10% price increase grant in May18 in Telangana). Profitability has improved considerably due to volume growth, positive price/mix and supply chain efficiencies, following the opening of Carlsbergs Karnataka brewery. The India business reported an organic operating profit growth of 131% YoY in 2018. Carlsberg launched the SAIL22 strategy in Mar16, aiming to make the Carlsberg Group a successful, professional and attractive brewer in the Chinese and Indian markets, which have good potential for top line growth. United Breweries grew by 12% YTD and by 37% in 9MCY18, then 4QCY18 was phenomenal for the companys largest brand in India (Tuborg) to end up with 19% volume growth for the full year.
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