India's top brewery, United Breweries, is to sell a 26% stake to an international partner to both reduce its debt and increase its competitiveness.

The company wants a partner that will help it market its Kingfisher brand abroad and international brands locally.

Four of the world's top breweries, Belgium's Interbrew, Holland's Heineken, South African Breweries (SAB) and Denmark's Carlsberg are all expected to show interest in the company.

Breweries are looking to developing countries to boost their profits, and some see the Indian market trebling in the next 10 years.

India consumes 72 million cases of beer annually, but its per capita consumption is only half a litre each year.

A shift in drinking preferences from spirits to beer, and also some relaxation in terms of government restrictions will bring about an increase in consumption.

Market leader

United Breweries is the prime target for those intending to conquer the Indian beer market.

The maker of Kingfisher has nearly a 40% share of the domestic beer market and 50% of the brewing capacity.

Rajesh Jain from Pranav Securities in Bombay told the BBC's World Business Report that easier flow of consumer goods across borders and changes in purchasing habits may threaten United Breweries (UB) position.

"As Indian consumers become more upwardly mobile and more exposed to foreign brand names, it is inevitable that the Indian consumer will upgrade himself and move up the value chain and try out better brands, so I think that is what UB is trying to prevent," he said.

United Breweries wants a partner that will not threaten Kingfisher in its domestic market and some say Interbrew, which is reported to be in talks with the Indian brewery at present, is the prime candidate.

"Choosing Carlsberg or Heineken would mean bringing in global brands that could swamp Kingfisher, and SAB has started establishing a presence in India, which could at some point threaten United Breweries," one banker said.

Beer state

Already South African Breweries (SAB) has bought three breweries in India and confirmed on Wednesday it is to buy Rochees Brewery, a small Indian brewery.

It bought a controlling stake in the brewery for $2m.

Rochees Brewery is based in Rajasthan, India's fifth largest beer consuming state.

Not only will SAB gain access to Rajasthan through this purchase but it will also have access to other northern states, such as Delhi. Many of these do not have their own brewery.