All of the comments in response are on the right track. The common one is for a male to say to another male drinking a strong drink, and that it will make them even more like a man (manly, strong). The hairs on the chest is a reference to puberty and maturing of course. Yes I have heard it as a funny joke for females to say it to a female, or saying by a male to a female. It also applies to other things sometimes as any activity that might make you stronger, such as a hard gym workout, or even doing something brave, or working in a dangerous situation. The experience puts hairs on your chest. It is is all a kind of simile, liking something to a similar effect. You can use it sometimes for food-perhaps a strong hot spice for example, or very rich broth or stew. It is one of those expressions that adapts to the context.