SABMiller writes down Rs. 2,000 crore of its investment in India.

SABMiller, the world's second-largest brewer, has written down $313 million (Rs. 2,000 crore) of its investment in India, citing increasing regulatory and excise challenges in one of the most regulated markets globally.

The London-headquartered company said in a recent presentation to investors that 'it recognised an exceptional impairment charge of $286 million against goodwill, $23 million against property, plant and equipment, and another $4 million against intangible assets in India.'

The alcoholic beverages industry in India is heavily regulated, with excise and other taxes forming an important source of revenue for state governments. In states that collectively account for 70% of the industry's revenue, the government controls manufacturing, distribution, retailing and pricing of liquor.

'A number of ongoing regulatory and excise matters which affect the operating environment have led to a reduction in the medium-term growth expectations as required to be used in the impairment review. The impairment is based on the accounting requirements of IFRS and does not represent any change in the longer-term intentions for SABMiller India,' a company spokesperson said.


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