Singapore, May 2 (AFP) Singapore-listed Asia Pacific Breweries, which makes Tiger Beer, has acquired 76 per cent of Indian brewer Aurangabad Breweries for $18 million.

The deal includes a provision for Asia Pacific Breweries to fully acquire the Indian company by the end of 2008, the company said.

Aurangabad Breweries has two plants in Maharashtra and Goa with a combined annual production capacity of about 250,000 hectolitres.

It will be Asia Pacific Breweries' second investment in South Asia after its entry into Sri Lanka in September last year when it bought a 60 per cent stake in Asia Pacific Brewery (Lanka) Ltd.

“In the last 16 years, our focus was mainly on Southeast Asia, Australasia and China,” Asia Pacific Breweries chief executive Koh Poh Tiong said.

“As our breweries in these markets have shown good growth, it is time we look beyond our current markets and set our sights on South Asia for expansion,” he said.

Koh said the Indian beer market has been growing at a compound rate of 7 per cent annually and is expected to accelerate due to deregulation and the emergence of a young and affluent middle class.

Asia Pacific Breweries now owns interests in 26 operations in 10 Asia-Pacific countries. It is a joint venture between the Fraser and Neave group of companies and Heineken of Holland.