Carlsberg India told to close Alwar unit over pollution breach ahead of $700 million IPO plans

Mumbai: Rajasthan's pollution control board has revoked Carlsberg India's operating consent for its Alwar brewery and ordered its closure, citing particulate emissions nearly eight times above the permitted limit, according to a regulatory order, adding a hurdle as the Danish brewer prepares to list its Indian business through a $700 million initial public offering.

Supplies to Rajasthan will be affected, but the impact is likely to be limited as the closure comes after the peak summer season, a senior industry official said.

The brewery also transmitted only 35.12% of its required pollution-monitoring data to the central regulator, below the mandatory threshold of 85%, the order reviewed by ET said. The state board revoked the consent to operate granted to Carlsberg India's Alwar facility on April 24, 2024, which was valid until October 31, 2028, subject to compliance with prescribed conditions. It directed the company to shut the plant and warned that failure to comply could trigger further action under air and water pollution laws.


The order followed the central pollution regulator's inspection in July and its subsequent recommendation for closure in August. The state board also directed the local electricity distribution utility to disconnect power to the facility as part of the enforcement action.

Carlsberg India did not respond to a request for comment.

The action comes as Carlsberg India advances preparations for a stock market listing. Earlier this month, the Securities and Exchange Board of India issued its observations on the company's proposed IPO, a key regulatory step towards the offering, which is expected to raise about $700 million. Carlsberg has been preparing for a listing for about a year and could seek a valuation of around ₹30,000 crore, people aware of the matter have said. The company has not publicly confirmed a final valuation or timetable.

In February, Carlsberg chief executive officer Jacob Aarup-Andersen confirmed that the company was exploring an IPO of its Indian business, saying it was assessing whether a listing would create sufficient shareholder value.

Carlsberg India, which sells Carlsberg and Tuborg beers, reported net sales of ₹8,939 crore and net profit of ₹443 crore in the financial year ended March 2025.

Rival United Breweries, which controls about half of India's beer market, reported revenue of ₹19,400 crore and net profit of ₹442 crore in the same period. Its market capitalisation stood at ₹35,377 crore.

India is an important growth market for global brewers, supported by rising incomes and a large consumer base. United Breweries leads the market, followed by Anheuser-Busch InBev and Carlsberg.

Regulatory hurdles have previously disrupted beer companies' operations in India. B9 Beverages, the maker of Bira beer, faced months of sales disruption after changing its corporate name to a public limited entity nearly two years ago. The change required labels to be re-registered and approvals to be renewed across states, leading to a write-off.