How to Start a Microbrewery in India: Cost, Licences and Timeline

A microbrewery is the most capital-heavy format we launch and the one with the longest licensing path. It is also the format with the best gross margin on the glass once it is running. This guide covers what it costs, which cities allow it, the licences, the equipment, the space, the team and a realistic timeline, based on the brewery and bar projects Table & Fork has delivered.

Basis: the ranges below are typical figures from Table & Fork project budgets for leased sites in metro India, excluding property purchase and GST. Excise rules, fees and production caps differ by state and change with each annual policy, so confirm the current policy before you sign a lease.

How much does it cost to start a microbrewery in India?

Plan on 4 to 8 crore for a 500 to 1,000 litre brewhouse with a 150 to 250 seat taproom and a full kitchen. Brewing equipment takes 1 to 2 crore depending on whether the brewhouse is Indian-made or imported. The fit-out, kitchen and bar take 1.5 to 3 crore because breweries need heavier civil work, drainage, electrical load and cooling than a restaurant. Licence fees, deposits and bank guarantees for excise run from 20 lakh upwards depending on the state. Keep 6 months of operating costs as working capital, because the first batches are brewed before a single pint is sold.

Which cities in India allow microbreweries?

Karnataka, Maharashtra and Haryana have the most settled microbrewery policies, which is why Bengaluru, Pune, Mumbai and Gurugram have the largest number of taprooms. Goa, Telangana, Punjab and a few other states also issue microbrewery licences. Delhi has permitted and then withdrawn microbrewery licences more than once, so treat a Delhi brewery as a policy question first and a site question second. Within a permitted state, the excise office also sets a production cap for the microbrewery category, typically somewhere between 500 and 1,000 litres a day, and the beer can only be served on the premises, not bottled for sale outside.

What licences does a microbrewery need?

Seven licences and registrations, with the excise licence the one that decides your opening date. Apply for it in the first week after the lease is signed, with the floor plan, the brewhouse specification and the brewer's credentials ready.

• State excise microbrewery licence, including the bar licence for serving and a bond or bank guarantee. Three to six months, and the plant is usually inspected before and after installation.
• FSSAI licence for the kitchen and for the beer as a food product, through the FoSCoS portal.
• Consent to establish and consent to operate from the state pollution control board, because spent grain, wash water and cleaning chemicals count as effluent.
• Fire NOC, which is stricter for breweries because of boilers, glycol plants and gas cylinders.
• Municipal health and trade licence, and an eating house licence where the state requires one.
• GST registration and shops and establishment registration.
• Music licences if you play recorded or live music, which most taprooms do.

Every batch is also sampled and tested by the excise laboratory before it can be served in most states, so the lab fee and the waiting time belong in the operating plan, not just the launch plan.

What equipment does a 500 to 1,000 litre brewhouse need?

A microbrewery is a small factory inside a restaurant. The core list is the same whether you buy Indian or imported, and the decision is mostly about lead time, service support and finish.

• Brewhouse: mash tun, lauter tun, kettle and whirlpool, plus a hot liquor tank. Two or three vessels depending on brew days per week.
• Fermenters: four to eight unitanks sized to the brewhouse, because fermentation and conditioning take two to four weeks and the tanks, not the brewhouse, set your capacity.
• Bright beer tanks or serving tanks, with the draught system and lines to the bar.
• Glycol chiller, steam boiler or electric heating, water treatment such as reverse osmosis, and a clean-in-place system.
• Kegs, grain mill, lab basics for gravity, pH and dissolved oxygen, and spares.

Imported brewhouses typically take four to six months from order to delivery, so the equipment order has to be placed around the same time as the excise application if the timelines are to line up.

How much space does a microbrewery need?

Six thousand to twelve thousand square feet in total. The brewhouse and cellar need 1,200 to 2,000 square feet with floor drains, a load-bearing floor, a ceiling height of at least 14 feet for the vessels and a route to bring the tanks in. The brewing area is usually glazed so guests can see it, which is part of the concept, not decoration. The remaining area goes to the taproom, the kitchen at 800 to 1,200 square feet, stores, cold rooms and back of house. Ground floor or a basement with vehicle access is far easier than an upper floor.

How long does it take to open a brewery in India?

Twelve to eighteen months from signed lease to opening, roughly twice as long as a full-service restaurant. The excise approval and the equipment lead time run in parallel and each takes four to six months, then installation, commissioning, test brews and the final excise inspection take another three to four months.

Who do you need to hire for a microbrewery?

The head brewer is the first hire, four to six months before opening, because the brewer specifies the plant, writes the recipes and sits in the excise inspections. Add an assistant brewer before opening. The rest of the team looks like a large bar and restaurant: a bar manager, bartenders trained on draught beer handling and glass care, a kitchen team sized to a menu that pairs with the beer, service staff and a general manager. A 200 seat taproom typically runs on 35 to 50 staff across shifts.

Do microbreweries make money?

Beer is the margin engine. A pint that sells for 250 to 400 rupees costs 40 to 70 rupees in ingredients, which puts beer gross margin at 75 to 85 percent once excise duty is accounted for in the pricing. Food usually makes up 35 to 45 percent of revenue at a lower margin. With a tight menu and a plant that is kept busy, a well-sited microbrewery breaks even in 18 to 30 months. The ones that struggle share the same faults: a brewhouse too small for the taproom, a kitchen too large for the concept, or a site chosen before the excise policy was read.

Table & Fork has launched Tama Brewery and World Kitchen and beverage-led venues such as The Lord of the Drinks and Plaka Cocktail Bar and Bistro. If you are planning a brewery in Pune, Bengaluru, Mumbai or Gurugram, our brewery consultant page explains how the programme runs, from the policy check to the first pour.