Beer industry to invest ₹5,500cr in UP by 2029
What's the story
The Brewers' Association of India (BAI) has announced that the beer industry will invest around ₹5,500 crore in Uttar Pradesh over the next three years. The investment will be used for setting up greenfield units and their ancillaries. BAI Director General Vinod Giri said that work on two greenfield breweries worth around ₹1,500 crore is already underway.
Expansion plans
Major aluminum can production plants in pipeline
Along with the breweries, two major aluminum can production plants are also in the pipeline with an investment of ₹2,000 crore. A few glass production units worth ₹2,000 crore will also be set up soon. Giri said that these investments would give a major boost to the industry and create jobs in UP.
Policy impact
BAI represents leading companies
BAI represents three leading companies: United Breweries Ltd (UBL), ABInBev, and Carlsberg, that operate over 55 breweries and account for over 85% of India's beer sales. The UP government recently announced its excise policy, which BAI has welcomed as a progressive move. Giri said the policy brings more transparency in licensing and approvals process while adding clarity across licensing, distribution, taxation.
Price stability
Beer taxes unchanged under new excise policy
The new excise policy has kept beer taxes unchanged while marginally increasing them on spirits. The overall impact on IMFL prices is expected to be around ₹10 per 180ml bottle. However, beer prices will remain the same. Giri said this calibrated approach is likely to promote consumption of quality products with lower alcohol content like beer, without affecting the state government's tax revenues.