UK-based Cobra Beer is looking at setting up wineries in the country besides investing more in expanding the company's beer business in the domestic market.

Cobra Beer Promoter and Chairman Karan Bilimoria said "There are many locations in the country such as Uttarakhand and Karnataka where wineries could be created and we are studying the possibility of setting of wineries in the country".

In addition to this he added "Currently, our wine brand 'General Bilimoria' is produced at 10 locations across the globe and we would soon start importing wine but setting up wineries in India would take some time. Currently, duties on imported wines are too high and we would like to wait for some time till they come down".

Cobra Beer is also investing in expanding its beer business in the country as it is looking to produce 10 million cases by 2010-11.

Bilimoria said, "Cobra Beer achieved the annualized production of around 3.5 million cases in July this year and by July next year, it will be around five million cases and by 2010-11, our total production would be around 10 million cases."

However, it is known through sources close to the situation that Indian entrepreneur Karan Bilimoria is putting his Cobra beer business up for sale for around 200 million pounds ($296.8 million). Bilimoria has appointed investment bank Rothschild to find a new investor in the beer company he founded 18 years ago after the failure of talks earlier this year to sell a stake to the world's biggest alcoholic drinks group Diageo Plc . For the last 11 years, Cobra beer has been brewed under licence in Britain by privately-owned regional brewer Charles Wells of Bedford in southern England. It also has a small but growing Indian business. Bilimoria, aged 46, owns around two thirds of the beer group with the remaining stake held by hedge funds, other investors and the company's own employees.