Brewing SolutionsWhat does it Cost to Set up a Microbrewery in India?

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The last few years have seen the rapid rise of beer connoisseurs in India. With more and more beer dipsomaniacs looking to taste freshly crafted beer, microbreweries have opened up all over the country. If you are a beer lover, who is exploring the options of setting up a microbrewery in your city, you have stumbled on the right page.

Here, in this post, we take you through the A-Zs of microbreweries in India – what it costs, the licenses required and much more.

Microbrewery: The Basics

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A microbrewery (also known as craft brewery) is a small beer manufacturing unit that produces small amounts of beer in a batch. Microbreweries are independently owned, and they cater to a niche audience. Microbreweries distinguish themselves from large scale corporate breweries based on the quality, brewing techniques, the flavour of the brews and more.

A microbrewery may or may not have a packaging facility. Generally, microbreweries sell brews on premise using mugs or pitchers filled directly from the tap. In India, microbreweries are allowed to keg their beer for sale in other nearby bars and pubs. Kegging is the process where freshly brewed beer is filled in pressurized and insulated vessels known as kegs.

Bars purchase these kegs from microbrewers at wholesale rates and sell them at retail prices in their premises. Bars require the right dispensing setup to sell craft beer in their premises. Apart from retail sales, keg sales play an important role in the overall revenues of microbreweries.

Apart from kegging, microbreweries in India are also selling craft beer in cans and bottles.

Microbrewing Opportunities in India

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The concept of microbreweries was introduced in India way back in 2006 -07. But, due to stringent laws, it didn’t really take off till the 2010s. As per 2018 studies, it was found out there are over hundreds of microbreweries operating in India in 2018, and many more are set to open in the country, in the next few years.

Microbreweries have been growing at a rapid rate of 22-30% per annum. The industry is just getting started, and there are plenty of profitable opportunities for microbrewers, as the popularity of craft brews keep on rising.

With more state governments relaxing norms and issuing licenses to operate microbreweries (Delhi recently granted permission for the operation of microbreweries). With the right machinery and business planning, you can easily set up a beer manufacturing plant in India and run it successfully.

Things to Consider before Starting a Microbrewery in India

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Contrary to popular belief, starting a microbrewery is not capital intensive. You can easily set up a 300-litre capacity beer plant for just under 29 lakhs, with Rohit Jafa Brewing Solutions. Rohit Jafa and team help you every step of the way, providing you with quality beer brewing equipment, procuring the required licenses and more.

Here are a few factors to consider before setting up a microbrewery in India:

  • Do market research – analyse the size of your target market, and its purchasing power.
  • Identify the different kinds of beers popular in your target market and list styles that are currently available.
  • Analyse the various income groups in your target market, their preferred price ranges and more.
  • Find out about the permitted trade practices, distributive techniques, restrictions, preferences — regulatory requirements, product approvals, local approvals, etc.
  • Choose an ideal location for your brewpub.
  • Choose the type of business organization that is suitable like a partnership, proprietary concern, private ltd or ltd company.
  • Develop a detailed business plan with financial inputs.
  • Identify potential competitors and figure out how your business will stand out from the crowd.
  • Develop a detailed marketing plan.

The Next Crucial Step: Business Compliance for Microbreweries in India

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Before you set up your business, you have to apply for and avail several permissions and licenses. The required licensing varies from state to state. So, make sure to check your state laws carefully, before you begin. If you need help, you can contact us, to know more about the licensing requirements for your state.

Usually, it’s the state excise department that issues the license for brewpubs and microbreweries. The average price of this license is 25,000/- INR per month, but it varies from state to state. Apart from the brewery license, you also have to obtain a bar license. Here are the other common licenses and permissions that you require:

  • Land registration or lease sanction
  • Commercial water line – for underground bore water or municipality water
  • Commercial electricity line
  • Wastewater disposal certificate from the pollution control board
  • Company registration certificate
  • Water quality testing certificate from quality control labs
  • Quality Control certificate of finished beer from the government

Required Microbrewery Machinery & Equipment

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If you already own a hotel or restaurant, you can start the brewpub within your premises itself. Alternatively, you can rent or purchase stand-alone land for setting up the brewpub. Here are some of the major microbrewery equipment that you need:

  • Mashing Kettles and Turns
  • Lauter Turns and Fermenters
  • Refrigeration Machine
  • Electric Cabinet with all Controls
  • Beer Filters
  • Physical Heat Exchangers
  • Boilers
  • Serving System
  • Distribution Tanks

While purchasing beer equipment, always choose reliable suppliers. Make sure to check the reviews of previous customers, before choosing a supplier. Get the detailed equipment list and go through the physical and technical specifications of the machinery to evaluate whether it’s of standard quality.

Here, at Rohit Jafa Brewing Solutions, we help our clients source the best microbrewery equipment in India. We source our equipment from the best manufacturers in China, Germany, and other specialized equipment manufacturers.

As our tenth anniversary offer, we are offering the best ever prices on our entire range of microbrewery equipment. At the most affordable beer plant machinery cost in India, you can make your microbrewery dreams come true with Rohit Jafa and team. Get in touch with us today, to avail this limited time offer.