Dutch brewing company Heineken is said to be planning to increase its stake in India’s United Breweries (UB) to gain complete management control in the company.

Heineken with its 42.07% stake in UB is its single-largest shareholder. It now plans to acquire over 50% shares in the company owned by India’s indebted liquor baron Vijay Mallya.

UB is known for producing the popular Kingfisher beer apart from 14 other brands, including London Pilsner.

The company is likely to carry out the stake hike in a phased manner over the next couple of years, Reuters cited sources as saying.

One of the sources was quoted as saying: "UB will need to make huge investments over the next few years on distribution network as well as new products.

"Heineken, as a majority owner of the company, is in a better position to do that."

The sources, however, did not say whether Mallya would hold a minority stake saying it was too early to comment.

In the event that Heineken takes on the full 32.6% share held by Mallya and related companies, there was a possibility of the deal being worth an estimated Rs71bn ($1.06bn).

The Dutch firm gained ownership in UB with its acquisition of Scottish & Newcastle, and raised its stake later through share purchases.