London, Nov 1 (IANS) Cobra Beer founder Karan Bilimoria is on a drive to raise 4.5 million pounds for his Indian business after partly selling the British arm in a pre-pack administration deal, the Sunday Times reported.
Bilimoria said it was “absolutely vital” to raise the money, adding it remained to be seen what size stake in the business new investors would be granted.

He said the Indian beer market had enormous potential and he was “very confident” of being able to raise the funds.

Cobra Beer went into administration in May with debts of around 70 million pounds owed to suppliers before Bilimoria sold 50.1 percent of the shares to the North American company Molson Coors for 14 million pounds.

Bilimoria, who remains chairman of the joint venture company under the deal, has hired the accountancy firm Grant Thornton to work on a fundraising for the Indian business.

He plans to use the fresh finance to complete the purchase of a brewery in India and to develop the brand, the Sunday Times reported.

Cobra’s Indian arm generated retail sales of about five million pounds in the year to March but delivered losses of four million pounds. Turnover is forecast to grow beyond 20 million pounds within four years.