Cost and Equipment for a Microbrewery Business
The cost of setting up a microbrewery unit will largely depend on the scale of the production of beer and the size of the brewpub. On average, the cost of starting a small-scale microbrewery business is around Rs. 2 Crores in India exclusive of the land cost. You need the right equipment to brew different types of beer. The brewery equipment in India will help you get quality brewery equipment that will help you properly brew beers.
Ingredients and Brewing Process
Beer is made up of barley. Additionally, beer can be made from corn, wheat, and rice. Whichever grain is chosen for making beer, hops are included to flavor the brew which acts as a natural preservative. During the process of fermentation, carbonation is created which results in alcohol content.
Starting a Microbrewery in India
Just like every other restaurant business, starting a microbrewery is labor and capital intensive. It can take ₹50 lakhs to ₹1 cr to start a microbrewery in India depending on the scale and location of the business. Understanding the process of making craft beer is crucial before venturing into this business.
Licensing and Expenses
To start the commercial operation of the microbrewery business, you need to obtain a license from the state government excise department. Licenses and permits are required from various authorities including state excise departments, FSSAI, local municipal bodies, and the Pollution Control Board. The capital required can vary widely based on factors such as the brewery’s size, location, equipment, and branding.
Profitability and Market Trends
The Indian microbrewery business is growing rapidly, with new businesses emerging all over the country. The average cost of setting up a microbrewery in India is around Rs. 15 lakhs, and the industry is growing at a rate of 20% per year.
Marketing and Business Strategy
Microbreweries are a combination of a restaurant and a small microbrewery processing plant, offering craft beer with different customized tastes and flavors to clients on-premise. A strong marketing strategy and substantial capital investment are essential for success in the microbrewery business.
Future Growth and Opportunities
The market for microbreweries is still developing in India, with projected growth in beer sales. Proper planning and investment can unlock unlimited opportunities in the microbrewery industry.