Belgium's InBev NV, the global brewer of famous beer brands such as Stella Artois and Beck's, and the RK Jaipuria Group, the largest Pepsi bottler in India, plan to set up a joint venture that will invest Rs 4.5 billion over five years in building breweries in the country. The 50 : 50 joint venture will use the amount to build three breweries in India, reports the Mumbai newspaper, Daily News & Analysis.

"The decision has been taken. An agreement should be signed within a week to 10 days," Raj Gandhi, RK Jaipuria Group's Financial Director told Dow Jones. Earlier this month, the CK Jaipuria family, which if related to the other Jaipurias, announced a joint venture to set up a greenfield brewery in Andhra Pradesh for Asia Pacific Breweries, Heineken's Asian venture based in Singapore.

InBev refused to comment on the reports, reports Just-Drinks.com, quoting the company spokesperson.

As the action in the brewing industry hots up, reports suggest that Foster's has decided to put its venture in India on the block. The proposed sell-out is part of the brewer's plan to revamp it Asian operations.

The Rs 38-billion Indian beer market, which is growing at 7% annually, is dominated by UB Group's joint venture with Scottish & New Castle and SAB Miller, the international brewer who partnered the Shaw Wallace when the late Manu Chhabria was at the helm. They later bought out the Shaw Wallace stake completely before the Chhabria family exited from the company.

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