Beer industry to invest ₹5,500 crore in UP in next three years: BAI

The brewing industry will invest around ₹5,500 crore in Uttar Pradesh in the next three years on setting up of greenfield units and its ancilleries, industry body BAI said.

The beer industry is "betting big" on Uttar Pradesh, said the Brewers' Association of India (BAI), while welcoming the new excise policy announced by the state government, termed it "progressive" and has a "well-balanced approach" for the growth of the industry.

"The beer industry and its ancillary industries will be investing ₹5,500 crore in the next three years," said BAI Director General Vinod Giri.

Elaborating the projects, he said work on two greenfield breweries costing around ₹1500 crore is already underway.

"Similarly, two major aluminium can production plants, which entail investment of ₹2,000 crore, are also in the pipeline, while a few glass production units worth ₹2,000 crore will also come up soon," Giri told PTI.

In addition, plans are underway for the malting unit and paper box makers, which are yet to be announced. All these investments will give a major boost to the industry and create jobs in the state, he added.

BAI represents three leading companies -- United Breweries Ltd (UBL), ABInBev and Carlsberg -- which together operate over 55 breweries and account for over 85 per cent of the beer sold in India.

Recently, the UP government has come up with its excise policy for 2026-27. According to BAI, this policy brings more transparency in the licensing and approvals process, and adds clarity across licensing, distribution and taxation while reinforcing a stable and growth-oriented environment for the beer industry.

This recently announced excise policy has maintained taxes on beer, while increasing it marginally on spirits. The overall impact on IMFL prices is going to be around ₹10 per 180 ml bottle. However, beer prices would remain the same.

"This calibrated approach is expected to encourage consumption of high-quality products with lower alcohol content like beer without jeopardising the state government's tax revenues. While there has been a marginal hike in the consumer prices of hard liquor, beverages with low alcohol content like beer have been spared," said Giri.

This balanced approach will not disrupt the liquor industry, he added.

According to reports, India is ranked 13th globally in total beer consumption, with north India leading consumption, with high demand from Delhi, Haryana, and Uttar Pradesh.