Detailed Project Report on BEER MANUFACTURING PLANT (6000 CASES PER DAY OF 500 ml. CAN, 330 ML. BOTTLE AND 650 ML. BOTTLE)

India has the lowest median age (28.7 years) among key emerging and developed economies and compared to world average (31 years) consuming beer drink.

Several factors are likely to contribute to economic growth in the long run. These include favorable demographics, reducing dependency ratio, rapidly rising education levels, steady urbanization, growing young & working population, IT revolution, increasing penetration of mobile & internet infrastructure, government policies, increasing aspirations and affordability, etc.

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ENGINEERS INDIA RESEARCH INSTITUTE
4/54, Roop Nagar, Delhi-110007 (India)
Phone: [phone]
E-mail: [email protected]
Website: www.eiriindia.org




BEER MANUFACTURING PLANT (6000 CASES PER
DAY OF 500 ml. CAN, 330 ML. BOTTLE AND 650
ML. BOTTLE)
[EIRI/EDPR/4762] J.C.: 2982XL

India has the lowest median age (28.7 years) among key emerging and developed
economies and compared to world average (31 years) consuming beer drink.

Several factors are likely to contribute to economic growth in the long run. These
include favorable demographics, reducing dependency ratio, rapidly rising
education levels, steady urbanization, growing young & working population, IT
revolution, increasing penetration of mobile & internet infrastructure, government
policies, increasing aspirations and affordability, etc.

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CONTENTS

INDUSTRY OVERVIEW

OVERVIEW OF GLOBAL AND INDIAN ECONOMY

INDIA IS THE WORLD’S FIFTH LARGEST ECONOMY AND EXPECTED TO BE IN
TOP THREE GLOBAL ECONOMIES BY FISCAL 2030

GDP RANKING OF KEY GLOBAL ECONOMIES (2022)

GLOBAL DISPOSABLE INCOME PER CAPITA

DISPOSABLE PER CAPITA INCOME OF KEY GLOBAL ECONOMIES (VALUE IN
USD)

MEDIAN AGE OF KEY GLOBAL ECONOMIES

MEDIAN AGE: KEY EMERGING AND DEVELOPED ECONOMIES (2022)

MACRO-ECONOMI C OVERVIEW OF INDIA

INDIA’S GDP GROWTH

INDIA’S NOMINAL GDP (US$ TRILLION) AND GDP GROWTH RATE (%), FISCAL

DOMESTIC CONSUMPTION GROWTH

PRIVATE FINAL CONSUMPTION EXPENDITURE

HIGH SHARE OF DOMESTIC CONSUMPTION IN PRIVATE FINAL CONSUMPTION
EXPENDITURE (PFCE)

INDIA’S TOTAL PRIVATE FINAL CONSUMPTION EXPENDITURE (CURRENT
PRICES US$ TRILLION) (FISCAL) AND SHARE OF PRIVATE FINAL CONSUMPTION
EXPENDITURE TO GDP (%) (FISCAL)

GLOBAL CONSUMPTION TRENDS IN ALCO-BEVERAGES

WORLD PER CAPITA ALCOHOL CONSUMPTION IN FORM PURE ALCOHOL FOR
CALENDAR YEAR (IN LITRES)

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INDIA IS ONE OF THE FASTEST GROWING ALCO-BEVERAGE CONSUMPTION
MARKETS AMONG THE TOP ECONOMIES IN THE WORLD

RECORDED PER CAPITA CONSUMPTION OF PURE ALCOHOL (IN LITRES)
(YEARS IN CALENDAR YEAR)

INDIA ALCOHOL MARKET SIZE IN 100% PURE ALCOHOL (VOLUME IN MILLION
LITRES) (YEARS IN CALENDAR YEAR)

ALCOHOL CONSUMPTION IS DIVIDED IN THREE MAJOR PRODUCT
CATEGORIES INCLUDING SPIRITS, BEER AND WINE

WORLD PER CAPITA RECORDED ALCOHOL CONSUMPTION FOR 2022 (VOLUME
IN LITRES)

PER CAPITA CONSUMPTION OF ALCOHOLIC BEVERAGES IN 2022 (VOLUME IN
LITRES)

INDIA IS ONE OF THE LEADING SPIRITS MARKETS WITH MORE THAN 90% OF
CONSUMPTION IN THE FORM OF SPIRITS

CONTRIBUTION OF ALCOHOLIC BEVERAGES IN 100% ALCOHOL IN 2022 (IN %)

PER CAPITA ALCO-BEVERAGE CONSUMPTION AS PER ALCOHOL
CONCENTRATION IN 2022 (IN LITRES)

ALCOHOL CONSUMPTION BY GENDER

MEN V. WOMEN CONSUMPTION OF ALCOHOL FOR THE WORLD (VALUE IN
LITRES) (FOR 2022)

REGULATORY FRAMEWORK FOR DISTRIBUTION AND SALE OF LIQUOR

SNAPSHOT OF ALCOHOL POLICIES AND STATUS IN INDIA

INDIAN ALCO-BEVERAGE MARKET PROFILE

INDIA IS PRIMARILY A DISTILLED ALCO BEVERAGE MARKET WITH
CONTRIBUTION OF SPIRITS IN FORM OF PURE ALCOHOL AT MORE THAN
92.0% IN 2022

PER CAPITA CONSUMPTION OF ALCOHOL IN TERMS OF PURE ALCOHOL FOR
CALENDAR YEAR (VOLUME IN LITRES)

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RECORDED ALCOHOL CONSUMPTION IN INDIA WAS CLOSE TO 3,116 MILLION
LITRES OF PURE ALCOHOL FOR 2022

ALCO-BEVERAGE MARKET SIZE IN 100% PURE ALCOHOL 2022 (VOLUME IN
LITRES)

PER CAPITA CONSUMPTION OF ALCOHOL I N TERMS OF PURE ALCOHOL –
INDIA V. WORLD (VOLUME IN LITRES)

INDIAN ALCO -BEVERAGE MARKET SIZE IN RECORDED PURE ALCOHOL FOR
CALENDAR YEAR (VOLUME IN MILLION LITRES)

INDIAN ALCOHOL BEVERAGE MARKET IS MORE THAN A BILLION CASES IN
SIZE AND HIGHLY DOMINATED BY SPIRITS

ALCO-BEVERAGE CONSUMPTION IN INDIA (IN MILLION CASES) AND CAGR FOR
FISCAL

ALCO-BEVERAGES CONSUMPTION IN INDIA FISCAL 2023E (TOTAL 1,068
MILLION CASES)

INDIAN ALCO-BEVERAGE SECTOR SIZE WAS ESTIMATED AT ₹ 3,100 BILLION
IN FISCAL 2023 MAKING IT ONE OF THE BIGGEST MARKETS IN THE WORLD

INDIAN ALCO-BEVERAGE MARKET (IN ₹ LACH CRORE IN FISCAL)

INDIAN ALCO-BEVERAGE MARKET IS DOMESTIC LED MARKET

INDIAN ALCO-BEVERAGE MARKET FISCAL 2023 (TOTAL VALUE ₹ 3.15 LAKH
CRORE)

INDIAN MADE FOREIGN LIQUOR IS DOMI NATED BY BROWN SPIRITS UNLIKE
WORLD MARKET WHICH IS A WHITE SPIRITS MARKET

IMFL MARKET IN INDIA

IMFL SALES TREND IN VOLUME

BEER MARKET IN INDIA

PER CAPITA CONSUMPTION OF BEER IN PURE ALCOHOL FORM IN 2022
(VOLUME IN LITRES)

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INDIAN BEER MARKET HAS HIGH POTENTIAL WITH OVERALL CONTRIBUTION
TO WORLD MARKET AT TWO PERCENT FOR 2022

KEY BEER MARKETS IN WORLD IN 2022 (VALUE IN MILLION HECTO LITRES)

INDIAN BEER MARKET IS PROJECTED TO REACH OVER 480 MILLION CASES
BY FISCAL 2028

INDIAN BEER MARKET TREND FOR FISCAL (VALUE IN MILLION CASES) –
YEARS IN FISCAL

INDIAN BEER MARKET IS PROJECTED TO REACH 480 MILLION CASES BY
FISCAL 2028 WITH MARKET DOMINATED BY STRONG BEER

INDIAN BEER MARKET IN MILLION CASES (IN FISCAL)

INDIAN WINE MARKET IS PROJECTED TO REACH 5.9 MI LLION CASES BY
FISCAL 2028 WITH HIGH CONTRIBUTION OF DOMESTIC WINES

INDIAN WINE MARKET BY VOLUME IN MILLION CASES (DATA FOR FISCAL)

INDIAN ALCO BEVERAGE MARKET BY PRICE AND SEGMENTS

INDUSTRY SPLIT BY PRICE RANGE AND SEGMENTS

REGIONAL AND STATE WISE SPLIT OF ALCO-BEVERAGE CONSUMPTION

REGIONAL SPLIT OF IMFL MARKET FOR FISCAL 2023 (TOTAL VOLUME 385
MILLION CASES)

PROMINENCE IN ON-TRADE CHANNEL IS SET TO DRIVE SALES GROWTH IN
OFF -TRADE CHANNEL

ON-TRADE AND OFF-TRADE SALES OF INDIAN ALCO- BEVERAGE MARKET
(DATA FOR FISCAL)

SEGMENT WISE TREND: ON-TRADE VS. OFF-TRADE SALES (FISCAL 2023)

EVERY STATE AND UNION TERRITORY IN INDIA IS EFFECTIVELY AN
INDEPENDENT MARKET

DRINKING AGE IS USED TO CONTROL PROLIFERATION AND PROMOTE
RESPONSIBLE DRINKING

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STATE WISE MINIMUM DRINKING AGE

DISTRIBUTION AND PRICING STRUCTURE

DISTRIBUTION MODELS IN ALCO-BEVERAGE INDUSTRY

TAXES ON ALCO- BEVERAGES SERVE THE DUAL PURPOSE OF REVENUE
MAXIMISATION AND CONTROL PROLIFERATION OF ALCO BEVERAGES

SHARE OF EXCISE TO REVENUE OF ALCO-BEVERAGE COMPANIES IN INDIA
(VALUE IN %)

GROWTH FACTORS

DEMAND DRIVERS FOR THE ALCOBEV INDUSTRY

YOUNG POPULATION:

SOCIAL ACCEPTANCE:

FAMILY STRUCTURE:

ALCOHOL AVAILABILITY:

THREATS AND CONCERNS

RESTRICTION ON DIRECT PROMOTION:

STRINGENT REGULATI ONS:

BARLEY, YEAST AND HOPS SNAPSHOT IN INDIA

CONSUMER DEMOGRAPHICS AND PREFERENCES

ALCOHOL CONSUMPTION IN INDIA

HISTORY OF BEER

CLASSIFICATION OF BEER

ALES

LAGERS

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EXAMPLES OF ALES:

EXAMPLES OF LAGERS

BEER STRENGTH

SOME POPULAR BRANDS OF INDIAN BEERS

1. BIRA MALABAR STOUT

2. BIRA BLONDE SUMMER LAGER

3. WHITE OWL SPARK

4. GOA BREWING COMPANY’S BREAKFAST CEREAL STOUT

5. GOA BREWING COMPANY’S PINEAPPLE SAISON

6. GUAVA CHILLI MEAD MOONSHINE

7. CHOCOLATE ORANGE MEAD MOONSHINE

8. PROOST69 WHITE ALE

9. WHITE RHINO PALE ALE

10. KINGFISHER RADLER

11. YAVIRA LAGER BEER

12. KATI PATANG

13. KING’S BEER GOA

BREWING-RAW MATERIALS

BREWING - THE RAW MATERIALS

THE MAJOR RAW MATERIALS USED FOR BREWING ARE

MALT

GRAIN

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BARLEY- PATIALA (OWN FIELDS)

MALT:

MALT BEFORE LOADING FOR MILL

HOPS

THERE ARE 3 FORMS OF HOPS

HOPES IN THE FORM OF FLAKES

YEAST

YEAST UNDER A MICROSCOPE.

WILD YEAST

ALE YEAST

LARGER YEAST

WATER

ADDITIVES

ASCORBIC ACID (VITAMIN C)

SULPHUR DIOXIDE

CARAMEL

PROPYLENE GLYCOL ALGINATE

PROCESSING AIDS

MACHINERY TECHNICAL DETAILS

MILL SYSTEM

MASH TUN & LAUTER TANK

BREW KETTLE & WHIRLPOOL

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HOT WATER TANK

REFRIGERATING SYSTEM - GLYCOL WATER TANK

BEER MANUFACTURE PROCESS

MALT MILL

BREW HOUSE

MASH KETTLE

LAUTER TUN

WORT KETTLE

WHIRLPOOL

WHIRLPOOL AND PLATE TYPE HEAT EXCHANGER

PLATE HEAT EXCHANGER

FERMENTATION

LAGGERING

PREPARATION METHODS OF FEW DIFFERENT TYPES OF BEERS:

PROCESS FLOW DIAGRAM

PLANT LOCATION: GOA

LICENSES REQUIRED

LICENCES FOR MANUFACTURE OF BEER

LICENCE FOR PRIVATE BONDED WAREHOUSE

LIST OF DOCUMENTS:

OTHER LICENSES REQUIRED FOR THE SETUP:

HOW TO STORE BEER

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SOME TIPS TO STORE BEER ARE:

TOP INTERNATIONAL BRANDS LIST

SOME INDIAN BRANDS

MARKET SEGMENTATION

BEER TYPE

(STRONG, MILD AND CRAFT BEER):

BEER MEASURES

SERVICE OF BEER

EXAMPLES OF GLASSWARE ARE:

BOTTLED BEERS ARE AVAILABLE IN THE FOLLOWING SIZES:

FAULTS IN BEER

BOTTLED/CANNED BEER STORAGE

KEY REGULATIONS AND POLICIES

INDUSTRY-SPECIFIC LEGISLATIONS APPLICABLE TO OUR COMPANY

CONSTITUTION OF INDIA

EXCISE LAWS

THE BOMBAY PROHIBITION ACT, 1949

GUIDELINES FOR PREVENTION OF MISLEADING ADVERTISEMENTS AND
ENDORSEMENTS FOR MISLEADING ADVERTISEMENTS, 2022

THE CABLE TELEVISION NETWORKS (REGULATION) ACT, 1995 (THE “CABLE
TELEVISION REGULATION ACT”)

THE FOOD SAFETY AND STANDARDS ACT, 2006 (“FSS ACT”)

FOOD SAFETY AND STANDARDS (ALCOHOLIC BEVERAGES) REGULATIONS,
2018 (THE “ALCOHOLIC BEVERAGES REGULATIONS”)

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FSSAI GUIDANCE NOTE ON ‘FOOD HYGIENE AND SAFETY GUI DELINES FOR
FOOD BUSINESSES DURING CORONAVIRUS DISEASE (COVID-19) PANDEMIC’
(THE “COVID-19 GUIDANCE NOTE”)

LEGAL METROLOGY ACT, 2009 (THE “LEGAL METROLOGY ACT”) AND LEGAL
METROLOGY (PACKAGED COMMODITIES) RULES, 2011

BUREAU OF INDIAN STANDARDS ACT, 2016 (“BIS ACT”)

BUREAU OF INDIAN STANDARDS RULES, 2018 (“BIS RULES”)

THE INDIAN BOILERS ACT, 1923 (“BOILERS ACT”) AND THE INDIAN BOILER
REGULATIONS, 1950 (“BOILER REGULATIONS”)

THE STATIC AND MOBILE PRESSURE VESSELS (UNFIRED) RULES 2016 (“SMPV
RULES”)

THE ELECTRICITY ACT, 2003 (“ELECTRICITY ACT”)

THE NATIONAL ELECTRICITY POLICY

NATIONAL TARIFF POLICY

THE CONSUMER PROTECTION ACT, 2019 (THE "CONSUMER PROTECTION
ACT")

LAWS RELATING TO ENVIRONMENT

THE ENVIRONMENT (PROTECTION) ACT, 1986 (“EP ACT”), THE ENVIRONMENT
(PROTECTION) RULES, 1986 AND ENVIRONMENTAL IMPACT ASSESSMENT
NOTIFICATION, 2006 (“EIA NOTIFICATION”)

THE BIO-MEDICAL WASTE MANAGEMENT RULES, 2016 (“BMW RULES”)

THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 (“AIR ACT”)
AND THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974
(“WATER ACT”)

THE HAZARDOUS AND OTHER WASTES (MANAGEMENT AND TRANSBOUNDARY
MOVEMENT) RULES, 2016 (THE “HAZARDOUS WASTE RULES”)

PUBLIC LIABILITY INSURANCE ACT, 1991 (“PUBLIC LIABILITY ACT”)

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LABOUR LAW LEGISLATIONS

THE FACTORIES ACT, 1948 (“FACTORIES ACT”)

PLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
(THE “EPF ACT”)

EMPLOYEES' STATE INSURANCE ACT, 1948 (THE “ESI ACT”)

PAYMENT OF BONUS ACT, 1965

PAYMENT OF GRATUITY ACT, 1972 (THE “GRATUITY ACT”)

MATERNITY BENEFIT ACT, 1961 (THE “MATERNITY ACT”)

SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013 (THE “PREVENTION OF SEXUAL
HARASSMENT ACT”) AND RULES THEREUNDER

CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 (THE “CLRA”)

THE CODE ON WAGES, 2019 (THE “WAGE CODE”)

THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE,
2020

THE INDUSTRIAL RELATIONS CODE, 2020

THE CODE ON SOCIAL SECURITY, 2020 (“SOCIAL SECURITY CODE”)

OTHER LABOUR LAW LEGISLAT IONS:

SHOPS AND ESTABLISHMENTS LEGISLATIONS

INTELLECTUAL PROPERTY LAWS

COPYRIGHT ACT, 1957 AND THE RULES THEREUNDER

THE PATENTS ACT, 1970 (THE “PATENTS ACT”)

THE TRADEMARKS ACT, 1999 (“TRADEMARKS ACT”)

DESIGN ACT, 2000

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LAWS GOVERNING FOREIGN INVESTMENTS

THE CONSOLIDATED FOREIGN DIRECT INVESTMENT POLICY OF 2020 (THE
“CONSOLIDATED FDI POLICY”)

OVERSEAS DIRECT INVESTMENT (“ODI”)

LAWS RELATING TO TAXATION

PRINCIPLES OF PLANT LAYOUT

SOME OF THE FACTORS IN RAIL-TRACK PLANNING ARE:

MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:

PLANT LOCATION FACTORS

PRIMARY FACTORS

1. RAW-MATERIAL SUPPLY:

2. MARKETS:

3. POWER AND FUEL SUPPLY:

4. WATER SUPPLY:

5. CLIMATE:

SPECIFIC FACTORS

6. TRANSPORTATION:

7. WASTE DISPOSAL:

8. LABOR:

9. REGULATORY LAWS:

10. TAXES:

11. SITE CHARACTERISTICS:

12. COMMUNITY FACTORS:

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13. VULNERABILITY TO WARTIME ATTACK:

14. FLOOD AND FIRE CONTROL:

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

1. DEPRECIATION:

2. FIXED ASSETS:

3. WORKING CAPITAL:

4. BREAK-EVEN POINT:

5. OTHER FIXED EXPENSES:

6. MARGIN MONEY:

7. TERM LOANS:

8. TOTAL LOAD:

9. LAND AREA/MAN POWER RATIO:

RAW MATERIAL SUPPLIERS

MALTS

HOPS

YEAST

MACHINERY SUPPLIERS

COMPLETE MACHINERY

MACHINERY PHOTOGRTAPHS

MILL SYSTEM

MASH SYSTEM (MASH TUN&LAUTER TANK)

HOT WATER TANK

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MASH PUMP

PLATE HEAT EXCHANGER

HOPS FILTER

WORT INSPECTION PLATFORM

WORT BALANCE TANK

COMBINATION OF MASH PIPELINE

VENTURIFOURWAY (THERMOMETRIC OXYGENATION COMBINATION)

STERILIZATION TANK

RAW MATERIAL PHOTOGRAPHS

MALTS

HOPS

YEAST

PLANT CAPACITY

GENERAL

THE SELECTION OF CAPACITY OF A PLANT DEPENDS ON THE FOLLOWING
CONSIDERATIONS:

THE ABOVE FACTORS ARE DISCUSSED IN DETAIL BELOW:

PRODUCT DEMAND

RAW MATERIAL AVAILABILITY

ECONOMICS OF SCALE

CHOICE OF CAPACITY

PACKAGING

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PACKING STANDARDS:

CLEAR COLOURED BEER BOTTLES

PACKAGING REQUIREMENT:

MANPOWER

GENERAL

BASIS OF ESTIMATION

WORKING

TOTAL MANPOWER AND PAYROLL

UTILITIES

UTILITIES

WATER

WATER QUALITY PARAMETERS FOR PROCESSED WATER:

TABLE 1. SECTION WISE REQUIREMENT OF WATER IN THE PLANT

STEAM

UTILITIES (EQUIPMENTS)

WATER TREATMENT PLANT

STEAM GENERATING SYSTEM

REFRIGERATION SYSTEM:

PIPING AND INSULATION

CHEMICALS

POWER

ELECTRICALS & POWER CONTROLS

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REQUIREMENT OF POWER

SECTION WISE POWER REQUIREMENT

CONNECTED ELECTRICAL LOAD AT A GLANCE

EFFLUENT TREATMENT AND DISPOSAL

INTRODUCTION

THE WASTE FROM THE BEER PROCESSING OPERATIONS MAY BE CLASSIFIED
ON THE BASIS OF:

STANDARDS

TOLERANCE LIMITS FOR INDUSTRIAL EFFLUENT DISCHARGE

WASTE TREATMENT

PRIMARY TREATMENT

ANAEROBIC TREATMENT

SECONDARY TREATMENT

TERTIARY TREATMENT

SOLIDS CONCENTRATION

TYPICAL WASTE SOLIDS CHARACTERISTICS

EQUIPMENT REQUIREMENT

EQUIPMENT REQUIREMENTS

QUALITY CONTROL IN BEER PRODUCTION

LABORATORY TESTS

FOLLOWING ARE THE LIST OF TESTS THAT FOLLOWING TESTS CONSIDERED
FOR BEER;

RAW MATERIAL QUALITY

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TOTAL SOLUBLE SOLIDS

SULPHIDE TESTING

PH TEST

SPECIFIC GRAVITY

ALCOHOL CONTENT

RESIDUAL SUGAR TEST

SENSORY ANALYSIS

DAVIS20-POINT SCORE CHART FOR SENSORY EVALUATION

TARTARIC ACID TEST

TURBIDITY

COLOUR TESTING

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

ORGANIZATION CHART

PLANT LAYOUT

TURNKEY CONSULTANT

IMPLEMENTATION SCHEDULE

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APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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COST ESTIMATION

Plant Capacity 6000 Cases/Day

Land & Building (3 Acres) Rs. 5.79 Cr

Plant & Machinery Rs. 21.98 Cr

Working Capital for 1 Month Rs. 8.01 Cr

Total Capital Investment Rs. 36.41 Cr

Rate of Return 12%

Break Even Point 73%