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StockYard ( SEBI RA )

13th Oct · SEBI-Registered Analyst

Beer Industry Seeks One-Year Relaxation in Aluminium Can Quality Norms to Avert Rs 1,300 Crore Revenue Loss

India’s beer industry is facing an acute shortage of aluminium cans, prompting the Brewers Association of India (BAI) to urge the government for a “short-term regulatory relaxation” in Bureau of Indian Standards (BIS) norms to ensure uninterrupted supply from overseas suppliers. The industry faces an annual deficit of 12–13 crore units of 500 ml cans, which make up around 20% of India’s total beer sales. This shortfall could lead to an estimated Rs 1,300 crore loss in government revenues, according to BAI, which represents major brewers including AB InBev, Carlsberg, and United Breweries — together accounting for 85% of India’s beer market. The crisis stems from a Quality Control Order (QCO) implemented on April 1, 2025, bringing aluminium cans under mandatory BIS certification. With domestic suppliers — BALL Beverage Packaging India and Can-Pack India — already operating at full capacity, additional production is unlikely for at least 6–12 months until new lines become operational. In a letter to the Department for Promotion of Industry and Internal Trade (DPIIT), BAI requested that the implementation of the QCO for imported cans be deferred until April 1, 2026, allowing time for domestic capacity expansion. It also sought permission to import cans from international suppliers who have applied for BIS certification, until their approvals are finalized. India’s beer sector operates over 55 breweries, with a combined investment of Rs 25,000 crore and employment of more than 27,000 people. The industry warns that without regulatory flexibility, the ongoing shortage could slow growth and harm the broader economic ecosystem. #BeerIndustry #BAI #AluminiumCanShortage #BIS #QCO #UnitedBreweries #ABInBev #CarlsbergIndia #DPIIT #PackagingCrisis #MakeInIndia #BeverageIndustry #GovernmentRevenue #IndianEconomy

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