Indore-based Mount Everest Breweries Limited (MEBL) has acquired Karnataka’s Cheers Breweries in a Rs 300 crore deal, marking its entry into the southern market. The move is part of MEBL’s plan to expand to 20 states by FY26 and capture around 8 per cent of India’s beer market by 2030.
The expansion includes the acquisition of Cheers Breweries Ltd in Mysuru, a facility with an annual capacity of 1.5 million hectolitres. The deal is projected to generate Rs 350–400 crore in incremental revenue by FY28, driving 15–18 per cent topline growth for MEBL over the next three to four years, executives said.
Vedant Kedia, Whole-time Director at MEBL, said, “Karnataka represents the future of India’s beer culture, and our entry into the state marks both a strategic and symbolic milestone. With the Mysuru acquisition, we are scaling up production and cementing our presence in South India.”
MEBL is funding the acquisition through a mix of internal accruals and structured debt, covering acquisition, capital expenditure and working capital. With production beginning in the first week of September, the deal is expected to boost MEBL’s capacity to 3.5 million hectolitres from 2.0 million, a 75 per cent increase.
“Bengaluru, with its young and experimental consumer base, makes Karnataka a promising hub for us, and retailers have already shown strong interest in partnering with MEBL. Having shaped beer culture in Central India for over two decades, we are now excited to bring that legacy and innovation to Karnataka’s evolving landscape,” Kedia added.
The company further stated that the Mysuru facility forms part of its plan to build four brewery hubs across India, easing dependence on its central and northern plants and speeding up market access in Karnataka, Puducherry, Goa, Andhra Pradesh and Kerala by the end of Q3 FY26.
MEBL plans to roll out its expansion in Karnataka in two phases, targeting all 71 state depots by November. The first phase will cover 45 depots, with the remaining 26 to be added in Phase 2.
Its Karnataka portfolio will feature brands such as Mount’s 6000, Lemount and STOK (in 330 ml, 500 ml and 650 ml bottles), alongside draft beer in 20-litre kegs for select on-trade outlets. With Bengaluru’s HoReCa (hotel, restaurant and café/catering) segment accounting for nearly 45 per cent of premium beer sales, forging partnerships with pubs and bars will be central to the liquor maker’s market entry.
