Beer in India - Industry

Industry

The Indian beer industry has been witnessing steady growth of 10 - 17% per year over the last ten years. The rate of growth has increased in recent years, with volumes passing 170m cases during the 2008-2009 financial year. With the average age of the population on the decrease and income levels on the increase, the popularity of beer in the country continues to rise. The Indian beer industry is quite large at around 65 mn cases (12 bottles of 650 ml each) and in the last 3 years has grown at 14% annum is the unrestricted markets. The per capita consumption stands at a low 0.5 litre. Beer manufacturing requires a license from the centre, which is ratified by the respective state. Till 1989 licensing was restricted, in 1989, the central government relaxed the policy and accepted 460 applications for new projects. Only a few were cleared and fewer still have actually come on ground, on account of the low and uneconomical capacity of 5,000 kilolitres per annum licensed by the government. However the capacity is released to 15,000 kilolitres per annum for NRI proposals with 100% foreign equity, of which minimum 51% has to be on a non repatriable basis.