The beer industry will invest around Rs 5,500 crore in the next three years to set up new units and supporting facilities in Uttar Pradesh. Brewers Association of India i.e. BAI said that the beer industry is betting big on Uttar Pradesh. Welcoming the new excise policy announced by the state government, the industry has described it as progressive. BAI said that this reflects a very balanced approach for the growth of the industry. BAI Director General Vinod Giri said that the beer industry and its supporting units will invest Rs 5,500 crore in the state in the next three years. Giving information about the projects, he said that work is already underway on two new breweries costing about Rs 1,500 crore.
Jobs will be created in the state
Similarly, two large aluminum can production plants with an investment of Rs 2,000 crore are also in the pipeline, while some glass production units worth Rs 2,000 crore will also be set up soon, Giri said. Giri said that plans for malting units and paper box manufacturing units are also underway. He said that all these investments will give a big boost to the industry and create jobs in the state. BAI represents three major companies – United Breweries Limited (UBL), ABinBev and Carlsberg, which together operate more than 55 breweries. The share of these companies in the total beer sold in the country is 85 percent. Recently, the Uttar Pradesh government has come up with its excise policy for 2026-27. According to BAI, this policy brings more transparency in the licensing and approval process. Apart from this, it clarifies the situation of licensing, distribution and taxation in a better way.
The new policy will not have any negative impact.
In this recently announced excise policy, the tax on beer has been maintained, while that on spirits has been slightly increased. The overall impact on IMFL prices will be around Rs 10 per 180 ml bottle. However, beer prices will remain the same. Giri said that this thoughtful approach is expected to promote the use of high-quality products with low alcohol content like beer, which will not cause any loss to the tax revenue of the state government. Although consumer prices of hard liquor have increased slightly, low-alcohol drinks like beer have been spared. He further said that this balanced approach will not affect the liquor industry. According to reports, India ranks 13th globally in the total consumption of beer, with North India leading the way, and its demand is more from Delhi, Haryana and Uttar Pradesh.