Beer is an important segment of India’s alcoholic beverages industry and has historically been a preferred alcoholic beverage among younger consumers. The Indian beer market expanded substantially over the last one and a half decades, with consumption increasing from about 100 million cases in 2005 to more than 300 million cases in 2019. The industry is primarily dominated by strong beer, which accounts for over 85% of total beer volumes, while the super-premium segment has grown faster than the overall market.
The Indian beer industry experienced pressure during FY 20 due to elections, dry days, production restrictions, high consumer prices and sluggish market conditions. The COVID-19 outbreak further affected the industry, with retail and on-trade outlets being closed and primary dispatches declining sharply during the March 2020 lockdown. Despite these challenges, long-term growth prospects remained positive, supported by young demographics, increasing disposable incomes, changing consumer preferences and growing social acceptance of beer.
The industry remains highly regulated by State Governments, with taxation, production restrictions, distribution controls and government-monopoly arrangements influencing market operations. Regional consumption is particularly strong in southern India. The report indicates continued potential for market development, including premium and craft beer segments, supported by evolving consumer preferences and relatively low per-capita beer consumption compared with global averages.
| Particular | Cost / Value |
|---|---|
| Plant Capacity | 866 Case/Day |
| Land & Building (12000 sq.mt.) | Rs. 7.51 Cr |
| Plant & Machinery | Rs. 5.90 Cr |
| Working Capital for 2 Months | Rs. 5.86 Cr |
| Total Capital Investment | Rs. 19.79 Cr |
| Rate of Return | 42% |
| Break Even Point | 36% |
Beer manufacturing primarily uses barley malt, water, hops and yeast as its principal brewing materials. Barley provides fermentable sugars after malting and mashing, while hops contribute bitterness, aroma and flavor. Yeast converts fermentable sugars into alcohol and carbon dioxide during fermentation. Water is also a major ingredient and its quality can influence brewing performance and the characteristics of the finished beer. Depending on the formulation and beer style, adjunct grains or other permitted ingredients may also be used.
The beer manufacturing process generally involves malting, milling, mashing, lautering, boiling with hops, clarification, cooling, fermentation, maturation or conditioning, filtration where applicable, carbonation and packaging. Each stage is controlled to achieve the required composition, flavor, alcohol content and microbiological quality. Industrial breweries use dedicated processing equipment and monitoring systems to maintain consistent operating conditions throughout brewing and packaging.
The report primarily classifies beer in India into Strong and Mild beer categories based on alcohol content. Strong beer generally contains a higher alcohol level and represents the dominant portion of Indian beer consumption. The market can also be segmented by price positioning, including mainstream, premium and super-premium products, as well as by beer style and consumer preference. Craft beer has also gained attention through brewpubs and specialized offerings in major cities.
A well-designed plant layout improves material flow, production efficiency, safety and operational control. In a brewery, the arrangement should support the logical movement of raw materials through brewing, fermentation, storage, packaging and dispatch while minimizing unnecessary handling. The layout should also provide suitable areas for utilities, quality control, waste and effluent management, maintenance and personnel movement. Proper planning can improve productivity and facilitate hygienic and efficient plant operations.
Beer manufacturing requires approvals and licenses from the relevant authorities, particularly because alcoholic beverages are highly regulated in India. Requirements can vary by State and may cover establishment of the manufacturing facility, excise permissions, environmental compliance, factory operations, water and effluent management, fire and safety requirements, and product or packaging compliance. Since State Governments regulate significant aspects of alcohol production and distribution, a project should identify applicable approvals for the specific proposed plant location before implementation.
Beer should be stored under controlled conditions that protect its quality, packaging integrity and flavor stability. Storage areas should be clean, dry, suitably ventilated and protected from excessive heat and direct light. Temperature control is particularly important for maintaining product quality, while proper stock rotation helps prevent prolonged storage. Finished products should also be protected from physical damage during handling, warehousing and transportation. Specific storage conditions should be established according to the beer formulation, packaging type and manufacturer’s quality requirements.
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