Overview of Microbrewery License
A microbrewery, also called a craft brewery, is a small unit that produces limited quantities of beer for captive consumption and is found mainly in establishments such as hotels and restaurants in tourist places. As with the terms, we can understand that breweries that are much smaller than large-scale corporate breweries are defined as microbreweries. These breweries are generally characterised by their emphasis on quality, flavour and techniques. A microbrewery is a locally produced beer on a small scale using more natural ingredients and is also owned independently.
The microbreweries produce an average of 5,000 to 50,000 litres of beer daily. A microbrewery operator has to obtain a separate license from the Excise Department of the required State Government, known as a Microbreweries License. Currently, only a few states like Delhi, Haryana, Punjab, Maharashtra and Karnataka are allowed to set up microbreweries.
Benefits of Microbrewery License
Following are points that can be considered as the reasons that there are many benefits of obtaining a microbrewery license:
- With the recent hike in beer consumption, Pan India has given the most significant push to these locally brewing communities. They are getting more financial avenues, including venture capitalists.
- There is a rise in the market for these projects nowadays. Beer is the second most consumed alcohol in India, which means this business is very profitable in the Indian market.
- The All-India Brewers Association projects sales of such beers thrive at more rate than the growth of the traditional beer market.
- The microbreweries market is developing at a reasonable rate in India. Although, right now, only a few states are at liberty to produce such microbreweries, the Government is planning to line up more states to operate such businesses in India.
- As per the current estimates, the market of finely crafted beers is accounted for between Rs. 75 crores and Rs. 125 crores, and it takes almost 8-9 crores on average to establish a microbrewery.
- The Delhi NCR region has witnessed a significant increase in the demand for different types of beers. And as per a survey, Gautam Budha Nagar, Noida, has recorded a monthly consumption of 15 lakhs bottles and more than 7 lakhs litres of overseas liquor.
- Independent owner
- No need for packaging and per bulk litre for packaged beer in cartons
- Taxes are imposed on a weekly or monthly basis.
Pre-requisites for Microbrewery License
Here are some factors that are needed to be considered before establishing a microbrewery manufacturing and obtaining this Microbrewery License:
- Research on the size of the market
- Analysis of the kinds of beer that are popular in the market
- Analysis of income groups in market and price ranges
- Research on Trade practices, distributive techniques, restrictions, regulatory requirements, product approvals, etc.
- Ideal Location
- Choose a suitable business organisation
- Detailed business plan
- Identification of Potential Competitors
- Marketing Plan
- Mashing Kettles and turns
- Lauter Turns and Fermenters
- Refrigeration Machine
- Electric Cabinet with all Controls
- Beer Filters
- Physical Heat Exchangers
- Serving System
- Distribution Tanks
- PLC touch-type process controller
- Human resources such as Brew-master, assistant Brew-master or microbiologist, bar manager and waiters
Document Required for Microbreweries License
Following are the documents required for the Microbreweries License:
- Commercial Electricity Line
- The commercial water line from Municipality or underground bore water
- Land Registration or Lease Sanction
- Company Registration, MOA and AOA or Partnership deed in case of company or Partnership, respectively
- No Objection Certificate (NOC) from Inspection of Factories and Boilers
- Waste Disposal Certificate from the Pollution Control Board
- Fabricated equipment quality Certificate from Quality Control (QC) Labs
- Quality Control Certificate of finished beer from the Government approved QC labs on a random inspection basis
- Water quality testing Certificate from Quality Control (QC) Labs
Other documents that are required for obtaining a Microbrewery License are as follows:
- Application in prescribed Form
- Details of the applicant, including name and complete address
- The proposed investment
- Details of location
- List of equipment
- Ownership information or copies of proof of lease or rent agreement
- Floor plan
- Production capacity of the manufacturing plant/unit per day or per annum
- Project report with flow chart
- Blueprint of the plant and premises in triplicate
- Clearance Certificate from Pollution Control Board
- Record or documents showing the availability of resources such as water and electricity
- PAN Card
- Income Tax Clearance
- No Objection Certificate (NOC) from Labour Department
- GST Registration Certificate
- Liquor License
- Shop and Establishment License
- Health and Trade License
- Fire Safety License
- Music License
- FSSAI License
- Any other document as per requirement
Procedure to obtain Microbrewery License
Steps that are followed to obtain a microbrewery license are as follows:
- Filing of application in prescribed Form by the State Excise Department.
- Submission of all required documents along with the requisite fee.
- The appropriate department grants the License after taking all the required actions, such as verification of submitted documents and application and inspection of the manufacturing premises.
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Frequently Asked Questions
India’s first microbrewery is Doolally, which is located in Mumbai, Maharashtra. It was established in 2009.
States like Haryana, Punjab, Uttar Pradesh, Karnataka, Assam and Delhi are permitted to obtain a microbrewery license and to produce microbrewery in India.
The microbrewery license is valid for 12 months, i.e., for one year, and after that, the holder of such License is required to renew it by filing a proper renewal application at the appropriate department.
After obtaining a microbrewery license, one can sell and manufacture a microbrewery to the public.
No, for the opening of a bar or pub, a separate license that is a bar license is required.
What should be the percentage of alcohol contained in such beer?