Carlsberg India Ordered to Close Alwar Unit

Carlsberg India's Alwar unit has been ordered to close due to a pollution breach, a move that may impact supplies to Rajasthan but is expected to have a limited effect. The state board revoked the consent to operate granted to the facility on April 24, 2024, which was valid until October 31, 2028, subject to compliance with prescribed conditions.

The closure was directed after the central pollution regulator's inspection in July and its subsequent recommendation for closure in August. The regulator found that the brewery had transmitted only 35.12% of its required pollution-monitoring data, below the mandatory threshold of 85%.

The state board also directed the local electricity distribution utility to disconnect power to the facility as part of the enforcement action. Carlsberg India is planning a $700 million IPO, and this development may have implications for the company's plans.

## Why it matters The closure of the Alwar unit comes at a time when India is an important growth market for global brewers, supported by rising incomes and a large consumer base. Carlsberg India is one of the key players in the market, along with United Breweries and Anheuser-Busch InBev. Regulatory hurdles have previously disrupted beer companies' operations in India, and this development may impact Carlsberg India's operations and plans.

The impact of the closure on supplies to Rajasthan is expected to be limited, as it comes after the peak summer season. However, it may still have some effect on the company's operations and revenue. Carlsberg India did not respond to a request for comment on the matter.

## What happens next The company will need to comply with the state board's order and shut down the facility. It will also need to take steps to address the pollution breach and ensure that it is in compliance with the prescribed conditions. The development may also impact the company's $700 million IPO plans, and investors will be watching the situation closely.