The beer industry is set to invest approximately Rs 5,500 crore in Uttar Pradesh over the next three years, primarily in greenfield breweries, aluminium can production, glass manufacturing, and ancillary units, the Brewers' Association of India (BAI) announced on Sunday.
BAI Director General Vinod Giri described Uttar Pradesh as a key growth market where the industry is “betting big”. He welcomed the state government's recently notified excise policy for 2026-27, calling it “progressive” and marked by a “well-balanced approach” that fosters transparency, stability, and industry expansion.
“Work on two greenfield breweries, involving an investment of around Rs 1,500 crore, is already underway,” Giri maintained. He added that two major aluminium can production plants worth Rs 2,000 crore are in the pipeline, while glass production units valued at another Rs 2,000 crore are expected to materialise soon.
Plans for additional malting units and paper box manufacturing facilities are also under consideration, though yet to be formally announced. These investments, Giri said, would significantly boost the sector, generate substantial direct and indirect employment, and strengthen the supply chain in the state.
BAI represents the three dominant players, United Breweries Ltd (UBL), AB InBev, and Carlsberg, which together operate more than 55 breweries across India and command over 85 per cent of the domestic beer market.
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The new Uttar Pradesh excise policy has retained existing tax rates on beer while applying only a marginal increase on Indian Made Foreign Liquor (IMFL). The overall price impact on spirits is expected to be around Rs 10 per 180 ml bottle, with beer prices remaining unchanged.
“This calibrated approach is expected to encourage consumption of high-quality, lower-alcohol beverages like beer without jeopardising the state government's tax revenues,” Giri observed. “While there has been a marginal hike in consumer prices of hard liquor, beverages with low alcohol content like beer have been spared.”
He emphasised that the policy introduces greater clarity and transparency in licensing, distribution, and taxation processes, reinforcing a stable and growth-oriented environment for the beer sector.
India currently ranks 13th globally in total beer consumption, with northern states, particularly Delhi, Haryana, and Uttar Pradesh, driving the highest demand. The combination of a favourable policy framework and planned large-scale investments is expected to further accelerate beer consumption and industry development in the region.
The announcement reflects growing confidence among major brewers in Uttar Pradesh's potential as a consumption and manufacturing hub, supported by policy continuity and a measured fiscal stance on lower-alcohol products.
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