Carlsberg Plans Major Expansion across Key Indian States

In one of the fastest-growing beer markets in the world, Carlsberg India has inked a memorandum of understanding with the Ministry of Food Processing Industries in India to invest Rs1,250 crore over the next three years to increase its manufacturing footprint across important states.

 The investment proposal is for spending Rs500 crore to build a new Greenfield brewery in Ahilyanagar, Maharashtra. Additionally, it includes the previously announced Rs350 crore for ongoing development in Mysuru, Karnataka, and Rs400 crore for brownfield expansion at its current site in Hooghly, West Bengal.

“India is a priority growth market for Carlsberg Group. Our investments in Maharashtra, West Bengal, and Karnataka underline our long-term commitment to India’s future. These projects will expand our operational capacity, create meaningful employment, and generate excise revenues for the states,” said Nilesh Patel, Managing Director, and Carlsberg India.

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India is still one of the biggest beer markets for breweries worldwide. It is a warm, tropical nation with a promising population and rising levels of wealth.

Customers, suppliers, and logistical partners will all gain from the initiatives, according to the Danish brewer's India affiliate. Over the next three years, Carlsberg India anticipates increasing its raw and packaging material purchases by Rs600 crore across industries like transportation, glass, cans, cardboard, and malt.

In the fiercely regulated but expanding beer industry, Carlsberg, a Copenhagen-based company, joined the Indian market in 2007 and faces off against regional heavyweights United Breweries and AB InBev.

With an estimated 800 million individuals of legal drinking age and a burgeoning youth population, India has tremendously alluring growth prospects for the beer industry. Each year, almost 20 million people join this group. An estimated 140 million people drink beer, despite the fact that many states still view alcohol as prohibited.