§1What this business is
Malted barley is milled, mashed with hot water, filtered in a lauter tun, boiled with hops, cooled, fermented with yeast, conditioned, filtered and bottled. A microbrewery makes small volumes with varied flavours. A state excise licence comes before everything else.
§2Is it right for you?
Who it is for
Someone in a state that issues microbrewery licences, with links to bars and restaurants.
Who it is not for
Anyone in a dry state, or without patience for excise paperwork.
Advantages
- Growing taste for craft beer in cities
- Your own recipes and brand set you apart
- Spent grain sells as cattle feed (report)
Drawbacks
- The excise licence is hard to get and costly in many states
- Beer can be sold only through licensed outlets
- Strict hygiene and cold storage needed
Skills you need
- Brewing science and recipe control
- Hygiene and quality testing
- Excise compliance
Why difficulty 5/5: Licensing is the hardest part, and brewing needs real skill.
§3Market
Who buys
- Bars, pubs and restaurants
- Beer drinkers in cities
How it sells
- Licensed bars and brewpubs
- Licensed liquor retail, as state rules allow
Good to know
- Spent grain from lautering is often used as cattle feed (report).
- Where and how beer can be sold is set by each state's excise rules.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Malt mill | 1 | ₹2,80,000 |
| Mash tun | 1 | ₹1,50,000 |
| Filtration system | 1 | ₹1,00,000 |
| Heat exchanger | 1 | ₹2,74,000 |
| Beer fermentation tank | 1 | ₹85,000 |
| Kiln | 1 | ₹3,20,000 |
| Lauter tun | 1 | ₹2,50,000 |
| Beer filling machine | 1 | ₹2,80,000 |
From: PMEGP sample project report — Craft Beer (prepared by Udyami/Samadhan)
- Malt (barley)
- Water
- Hops
- Yeast
From: PMEGP sample project report — Craft Beer (prepared by Udyami/Samadhan)
§5Licences & registration
- State excise licence for a brewery or microbrewery (the report lists a liquor licence)
- FSSAI licence
- Fire NOC
- State Pollution Control Board consent
- Trade licence from the local body
- Udyam registration
- Trademark for your brand (optional)
§6Schemes & subsidies
Research is in progress. We do not publish guessed numbers — this part will be filled in as soon as we have a source.
The PMEGP portal carries this sample report, but PMEGP's negative list bars making or selling intoxicant items — check eligibility with KVIC or your District Industries Centre before you apply. Any bank loan will need the excise licence first.
§7Money
How the investment is worked out: Plant & machinery ₹17.39 L (excl. GST and transport), other misc assets ₹1.00 L, working capital ₹5.61 L = ₹24.00 L. Premises rented (₹30,000 a month assumed).
Working capital: Working capital ₹5.61 L, of which bank finance ₹5.05 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Export of alcoholic drinks also needs state excise clearance.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
§9Risks — where people fail
- Licence refusal or policy change
- Spoiled batches
- Excise duty and price controls
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working craft beer (microbrewery) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (State excise licence for a brewery or microbrewery (the report lists a liquor licence), FSSAI licence), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Craft Beer (Microbrewery)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.