Inertia managing director Sunil Tandon said the bidder figured among the top five beer brands in the world and talks were in its final stages. ``The deal is likely to come through in the next fortnight,'' he said.

``We have offered a majority stake of 51 per cent to the European manufacturer at Rs 40-50 per share,'' Tandon said adding financial modalities would be worked out later.

The European company has already completed technical inspection of Inertia's manufacturing facilities in Dharuhera in Haryana and Aurangabad in Maharashtra and has sent a `letter of interest,' he said. A first-generation entrepreneur, Tandon owns 65 per cent stake in the Rs 27 crore equity of Inertia with the remaining 35 per cent lying with the public.

``I have offered all but 10-15 per cent of my stake to the European company which would continue to maintain Sandpiper as its flagship brand in the local market,'' Tandon said.

Tandon also denied reports of talks with UB Group for selling the brand. ``We have not met UB Group for any business deal let alone selling Sandpiper,'' he said. ``All reports of Sandpiper being sold to UB are rubbish...How can I survive if I sell my brand and retain fixed assets,'' Tandon said.

Asked about the reasons for sellout, Tandon said Inertia had accumulated losses to the tune of Rs 15 crore during the last two years and a strong financial partner was needed to infuse life into the company operations.Prohibition in Haryana between 1996-98 had upset the profitability of the company which closed its Dharuhera plant, with installed capacity of five lakh hectolitre, Tandon said adding Inertia recorded healthy profits in the three years preceding prohibition.

Against assets worth Rs 120 crore Inertia's liabilities total Rs 35 crore, he said, adding manufacturing facilities at Dharuhera and Aurangabad require Rs 15-20 crore to operate at cent per cent installed capacity. Similarly, the Augurabad plant, which was commissioned last month, needed Rs 15 crore investment to take its present capacity of three hectolitre per annum to installed capacity of six lakh hectolitres. Catering to beer markets in Punjab, Chandigarh, Himachal Pradesh, Goa, Jammu, Maharashtra and Rajasthan, the company expects a turnover of Rs 30 crore in 1999-2000 as against Rs 16 crore last year.

Inertia plans to sell around 60 lakh cases during 2000-2001 and was targeting 12 per cent market share of the 73 million cases beer industry by 2002, Tandon added.