Carlsberg's $700M IPO at risk as brewery ordered to shut
What's the story
Carlsberg India's Alwar brewery has been ordered to shut down by the Rajasthan State Pollution Control Board (RSPCB) after breaching pollution limits. The facility's particulate emissions were found to be nearly eight times above permissible levels, as per a regulatory order. This comes as a major hurdle for Carlsberg, which is gearing up for a $700 million initial public offering (IPO) in India.
Supply disruption
Impact on supplies in Rajasthan
The closure of the Alwar brewery will affect supplies in Rajasthan.
However, a senior industry official has said that the impact would be minimal as it comes after peak summer season sales.
The facility also transmitted only 35.12% of its required pollution-monitoring data to the central regulator, below the mandatory threshold of 85%.
Regulatory measures
Revocation of operating consent
The RSPCB revoked the consent to operate granted to Carlsberg India's Alwar facility on April 24, 2024.
The consent to operate was valid until October 31, 2028, subject to compliance with prescribed conditions.
It directed the company to shut down the plant and warned that failure to comply could trigger further action under air and water pollution laws.
Inspection findings
Central pollution regulator's recommendation for closure
The RSPCB's action follows an inspection by the central pollution regulator in July and its subsequent recommendation for closure in August.
As part of the enforcement action, the state board also directed the local electricity distribution utility to disconnect power to the facility.
Carlsberg India has not yet commented on this matter.
IPO preparations
Carlsberg India pushes ahead with IPO plans
Despite the setback, Carlsberg India is pushing ahead with its stock market listing.
Earlier this month, the Securities and Exchange Board of India (SEBI) issued observations on the company's proposed IPO, a key regulatory step toward the offering.
The company has been preparing for a listing for about a year and could seek a valuation of around ₹30,000 crore.
In FY 2025, Carlsberg India reported net sales of ₹8,939 crore and net profit of ₹443 crore.