Carlsberg probes Indian unit for fraud: Report

Brewing giant Carlsberg, is probing its Indian unit for financial irregularities and unlawful, unethical practices by its employees, including incorrect payments, misappropriation of funds and unlawful payments from customers and officials, according to an ET report.

The beer maker enjoys a 19% share in India’s beer market and is the third-largest after United Breweries and ABInBev. This latest probe reopens previously-closed investigations related to permits and licences.

In a regulatory filing, obtained by ET from Veratech, Carlsberg said: “The matters include allegations of promoting sale of company products in prohibited areas, potential improper payments, kickbacks from its customers and misappropriation of sales promotion schemes payments, etc.”

The company said the probe followed accusations made by its local partner South Asia Breweries. The probe, an internal audit, is being conducted under the supervision of Carlsberg’s global integrity committee.

Carlsberg entered India in 2006. The Competition Commission of India launched a probe in 2018 into whether the three companies, United Breweries and ABInBev and Carlsberg, which collectively control more than 90% of India’s beer segment, were guilty of price cartelisation.