Beer sector in India invests in Uttar Pradesh
An investment of Rs 5,500 crore (US$604 million) is set to be made in Uttar Pradesh over the next three years, according to the Brewers’ Association of India (BAI).
Two ongoing greenfield breweries will benefit from Rs 1,500 crore (US$164.7 million) being invested while aluminium can plants will see a Rs 2,000 crore (US$219.7 million) boost and glass units will be given Rs 2,000 crore (US$219.7 million) along with being expanded with malting and packaging facilities.
‘Betting big’
According to reports via the FPJ, the beer industry is “betting big” on Uttar Pradesh and all while welcoming the new excise policy announced by the state government, a move it termed “progressive” and offering a “well-balanced approach” for the future growth of the industry.
BAI director general Vinod Giri said: “The beer industry and its ancillary industries will be investing Rs 5,500 crore in the next three years” and explained that “work on two greenfield breweries costing around Rs 1500 crore is already underway”.
Giri revealed that “similarly, two major aluminium can production plants, which entail investment of Rs 2,000 crore, are also in the pipeline, while a few glass production units worth Rs 2,000 crore will also come up soon”.
A major boost
In addition, the BAI disclosed that plans are underway for a malting unit and new paper box makers and pointed out that all of the planned investments will give a major boost to the industry and create jobs in the state.
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BAI currently represents three leading companies, including United Breweries Ltd (UBL), AB InBev and Carlsberg. which together operate more than 55 breweries and collectively account for more than 85% of the beer sold in India.
The BAI has also highlighted how the Uttar Pradesh Government has come up with its excise policy for 2026-27 and has duly noted that the policy brings more transparency in the licensing and approvals process.
Growth-focused
The policy has also been admired by the BAI for adding much-needed clarity across the topics of licensing, distribution and taxation within the state while also reinforcing a stable and growth-focused environment for the beer industry to prosper.
Giri added: “This calibrated approach is expected to encourage consumption of high-quality products with lower alcohol content like beer without jeopardising the state government’s tax revenues. While there has been a marginal hike in the consumer prices of hard liquor, beverages with low alcohol content like beer have been spared.”
India is reportedly ranked 13th globally in total beer consumption, with north India in particular leading consumption, with high demand being seen across Delhi, Haryana, and Uttar Pradesh.
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