Financial terms of the deal were not immediately available.
Mount Shivalik has brewing operations in Haryana and the Punjab region.
Rajiv Bali, chairman emeritus of Mount Shivalik and a member of the family that has run the business for 40 years, says Molson Coors brings expertise and operational efficiency to grow further in India.
The companies have had a contract brewing and distribution partnership that started in 2013.
Molson Coors entered the Indian market in 2011 when it bought control of Cobra India, which has one brewery.
"It is in line with our strategy to grow our regional brand portfolio," said Ravi Kaza, president of Molson Coors Cobra India.