Carlsberg ordered to shutdown Rajasthan brewery: Will customers be affected?
What's the story
Rajasthan's pollution control board has ordered the closure of Carlsberg India's Alwar brewery, citing a pollution breach. The decision comes as the Danish brewer gears up to list its Indian business through a $700 million initial public offering (IPO). The board found that particulate emissions from the facility were nearly eight times above permissible limits.
Regulatory breach
Operational consent revoked
The Alwar brewery failed to meet the mandatory pollution-monitoring data transmission requirement, sending only 35.12% of its data to the central regulator.
This is well below the required threshold of 85%.
The state board has now revoked Carlsberg India's operational consent for the facility, which was granted on April 24, 2024, and valid until October 31, 2028.
Enforcement action
Failure to comply may lead to further action
Along with revoking the operational consent, the state board has also ordered Carlsberg to shut down the plant.
It has warned that failure to comply could lead to further action under air and water pollution laws.
This decision comes after an inspection by the central pollution regulator in July and its recommendation for closure in August.
Market implications
Impact on supplies in Rajasthan
The closure of the Alwar unit is likely to affect supplies in Rajasthan.
However, a senior industry official has said that the impact would be limited as it comes after peak summer season sales.
The move comes as Carlsberg India moves closer to its stock market listing.
Earlier this month, the Securities and Exchange Board of India gave observations on the company's proposed IPO, a major regulatory milestone toward raising about $700 million.
Business outlook
Carlsberg India reported net sales of ₹8,939cr
In the fiscal year ending March 2025, Carlsberg India reported net sales of ₹8,939 crore and a net profit of ₹443 crore.
The company sells popular beer brands such as Carlsberg and Tuborg.
Despite the current regulatory hurdle, it remains a strong player in India's beer market, which is dominated by United Breweries with nearly half the market share.