Yuksom Breweries has emerged as a significant player in India’s beer industry, ranking as the third largest beer brand in the country. Producing over three million cases annually, the company has established a strong foothold in the market.
Yuksom Breweries is not only a prominent brand but also a major contributor to Sikkim's economy. The company is one of the highest tax-paying entities in the state, contributing over Rs. 100 crore annually. It provides employment to more than 250 people directly, with numerous indirect employment opportunities also generated.
Ownership and History
Yuksom Breweries Ltd. was founded in 1987 in South Sikkim by Tsering Phintso, better known as Bollywood actor Danny Denzongpa. The brewery is named after Denzongpa's hometown in the western district of Sikkim.
In 2005, the company expanded by establishing the Denzong Breweries Pvt. Ltd. greenfield project in Odisha. This was followed by the acquisition of Rhino Agencies Ltd. in Assam in 2009. Combined, these three breweries have a production capacity exceeding 680,000 hectoliters per annum.
Strategic Expansion and Market Defense
In a strategic move in 2009, Denzongpa successfully defended his market share in Northeast India against industry leader United Breweries (UB). UB intended to expand its presence in the region by acquiring Rhino Agencies, a brewery that was merely two months old at the time. To prevent potential disruption to his market share, Denzongpa aggressively bid for and acquired Rhino Agencies for Rs. 40 crore.
This acquisition fortified Yuksom Breweries' market position, with popular products such as Dansberg, Hit, and He-Man maintaining a strong presence in the market.
From Side Hustle to Major Industry Player
Despite a demanding film career, with more than five releases in 1987 and 14 in 1988, Denzongpa managed to successfully establish and grow Yuksom Breweries. What began as a side venture has now evolved into India’s third largest beer brand, underscoring Denzongpa's entrepreneurial acumen and strategic foresight.
