Banganga Paper Industries Ltd Acquires CMJ Breweries Pvt Ltd

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Banganga Paper Industries Ltd Acquires CMJ Breweries Pvt Ltd

An open offer will be extended by Mr Ronak Jain and associates for the remaining public shares, signalling a comprehensive restructuring of the company’s future.

In a significant strategic pivot, the Board of Directors of Banganga Paper Industries Ltd (BPIL) has approved the acquisition of a 78.90 per cent equity stake in CMJ Breweries Private Ltd (CMJBPL). The transaction, greenlit during a board meeting on December 17, 2024, involves the purchase of over 10.95 crore equity shares. To facilitate this transition and reflect its new corporate identity, the board also proposed renaming the company to Asgard Alcobev Limited. This acquisition is expected to conclude within two months, pending the necessary shareholder and regulatory clearances.

The move grants BPIL a dominant foothold in Northeast India’s alcohol sector by absorbing the region’s largest brewery. Located in Meghalaya, CMJ Breweries operates a state-of-the-art facility equipped with precision German and European machinery. This infrastructure ensures high-capacity production and top-tier efficiency, making it a critical asset as BPIL shifts its focus from paper industries toward the high-growth beverage market.

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Beyond its own labels, CMJ Breweries is a cornerstone of contract manufacturing in India. The facility currently partners with industry giants such as United Breweries (Kingfisher), Carlsberg India (Tuborg), and Sona Beverages (Simba). By managing high-volume production for these leading brands, the brewery maintains rigorous quality and compliance standards, positioning itself as a vital player in the national supply chain for premium beer.

This acquisition arrives at a pivotal time for the industry, as the Indian beer market is projected to grow from Rs 483.10 billion in 2024 to an estimated Rs 1,241.69 billion by 2034. To support this massive expansion and the company's new direction, BPIL has appointed M/s. Batliboi & Purohit as Joint Statutory Auditors. Additionally, an open offer will be extended by Mr Ronak Jain and associates for the remaining public shares, signalling a comprehensive restructuring of the company’s future.

Disclaimer: The article is for informational purposes only and not investment advice.