The maker of Cobra beer, Britain's leading Indian beer, is preparing to float on the stock exchange in the UK to fund its expansion into the premium beer market.

Bilimoria set up Cobra to pay off student loans

Cobra - which was set up in 1989 and imported beer for seven years from Bangalore, India, before switching production to Bedford - even has ambitions to export beer to India.

The Bank of Scotland has reportedly given Cobra a �2.5m loan, but the company needs to raise more money for its expansion and advertising plans.

Cobra was founded by Karan Bilimoria a decade ago to pay-off his student loan and now has sales of �40m a year.

Less fizz

The company originally targeted the Indian-restaurant market, with its distinctive colourful label featuring a map of India.

The beer became popular with diners because it is less bubbly than European beers, especially its main competitor Carlsberg, leaving more room for food in their stomachs.

About 250 million pints of Cobra a year are now sold in more than half of Britain's 9,000 curry houses, as well as other restaurants, off-licences and supermarkets.

The company plans to expand into pubs and clubs to turn Cobra into a mainstream premium brand and has already diversified into draught beer and 330ml bottles.

Cobra's growth has been hindered by its 5% alcohol content, which is taxed at a higher rate than Carlsberg's 3.8% lager.