Detailed Project Report (DPR) on craft beer

CRAFT BEER 

[CODE NO.4091]  

Beer comprises about 12%1 of the total alcohol consumed in India. While the alcohol beverages industry in India has been dominated by spirits, beer remains the preferred alcoholic beverage for young Indians. Beer has registered robust growth in the last one and half decades. From a total industry consumption of about 100 million cases in 2005, the consumption crossed over 300 million cases in 2019. The current industry size is estimated to be over 320 million cases per annum. Three leading players contribute over 85% of the total industry sales with our Company being the market leader having a market share of about 52%2. 

The Indian beer market shrunk during the FY 20. As per our estimate, a number of markets across the country remained sluggish during the second half of last Financial Year. April and May 2019 saw General Elections in India in a phased manner in each State, where dry days were imposed for a few days before and after elections and during election results which had reduced sales. Restrictions on production during this period also curtailed our ability to service market demand. Generally, high-end consumer prices dampened sales during the year. 

In addition, due to COVID, retail was completely shut from March 23, 2020 with on-trade outlets being progressive closed in the weeks prior, causing a secular drop in sales for beer and spirits. The last 8 days of March 2020, when normally increased primary dispatches’ happen due to start of the peak season, such dispatches actually became negligible due to lockdown. 

It is expected that the initial months of the new financial year will remain very challenging as retail only reopened in many states in India during 1st week of May. Demand is likely to only gradually recover and is negatively impacted due to increased taxation and other impediments. On basis of alcohol content, beer in India can be categorized into Strong and Mild Beers. Strong beer which has an alcohol content between 6% and 8% dominates the beer market accounting for over 85% of the total beer consumed in India. 

The Super Premium beer segment within both the Strong and Mild beer categories has been growing faster than the overall beer industry and has grown at a Compounded Annual Growth Rate (CAGR) of almost 30 per cent over the last three years. 

The Indian beer market continues to grow in line with expectations. Industry volumes grew  wat a CAGR of about 7% during the last five years. However, during 2019-20, the Indian beer market shrunk slightly over the previous year, in part related to COVID. Compared to the global average per capita consumption of about 30 liters, the per capita consumption in India still hovers around 2 litres1 . However, the scope for growth in India continues to remain positive given the climate, young demographics and increasing disposable income. 

Beer has become one of the most popular alcoholic beverages in the country over the past two decades. A plethora of beer brands are available in India to address the palate of various consumer segments. Majority of beer market growth is driven by young consumers, who consider beer a trendy drink, compared to traditional spirits. Brew pubs have emerged in large cities such as Bengaluru, Pune and Gurgaon over the last few years. 

These outlets have introduced consumers to new types of beers for example ‘craft beer’. beer Industry in India continues to remain traditional and is controlled by State Governments. It remains highly regulated with high taxation, restrictions on cross border movements, constraints on production, retailing and other barriers. In many parts of the country, wholesale and/or retail distribution is controlled by State Government monopolies. Also, in over 60% of the markets, State Governments directly dictate the price at which beer can be sold.

COST ESTIMATION

Plant Capacity                                    800 Cases/Day  

Land & Building (10117 sq.mt.)  Rs. 4.24 Cr    

Plant & Machinery                           Rs. 5.97 Cr 

Working Capital for 1 Month           Rs.80.79 Lacs 

Total Capital Investment                 Rs. 11.22 Cr 

Rate of Return                                145%

Break Even Point                            17%

• INDUSTRY OVERVIEW
• IMFL INDUSTRY
• GROWTH FACTORS
• DEMAND DRIVERS FOR THE ALCOBEV INDUSTRY
• YOUNG POPULATION:
• SOCIAL ACCEPTANCE:
• FAMILY STRUCTURE:
• ALCOHOL AVAILABILITY:
• THREATS AND CONCERNS
• RESTRICTION ON DIRECT PROMOTION:
• STRINGENT REGULATIONS:
• BARLEY, YEAST AND HOPS SNAPSHOT IN INDIA
• CONSUMER DEMOGRAPHICS AND PREFERENCES
• ALCOHOL CONSUMPTION IN INDIA
• HISTORY OF BEER
• CLASSIFICATION OF BEER
• ALES
• LAGERS
• 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
• MALT
• GRAIN
• BARLEY- PATIALA (OWN FIELDS)
• MALT:
• 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
• HOT WATER TANK
• REFRIGERATING SYSTEM - GLYCOL WATER TANK
• BEER MANUFACTURE PROCESS
• PROCESS OF BEER MANUFACTURING
• MALT MILL
• BREW HOUSE
• MASH KETTLE
• LAUTER TUN
• WHIRLPOOL
• WHIRLPOOL AND PLATE TYPE HEAT EXCHANGER
• PLATE HEAT EXCHANGER
• FERMENTATION
• LAGGERING
• 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
• SOME TIPS TO STORE BEER ARE:
• TOP INTERNATIONAL BRANDS LIST
• SOME INDIAN BRANDS
• MARKET SEGMENTATION
• BEER TYPE
• (STRONG, MILD AND CRAFT BEER):
• COMPETITIVE LANDSCAPE IN INDIA BEER MARKET
• BEER MEASURES
• SERVICE OF BEER
• FAULTS IN BEER
• BOTTLED/CANNED BEER STORAGE
• PRINCIPLES OF PLANT LAYOUT
• SOME OF THE FACTORS IN RAIL-TRACK PLANNING ARE:
• PLANT LOCATION FACTORS
• PRIMARY FACTORS
• 1.   RAW-MATERIAL SUPPLY:
• 2.   MARKETS:
• 3.   POWER AND FUEL SUPPLY:
• 4.   WATER SUPPLY:
• 5.   CLIMATE:
• 6.   TRANSPORTATION:
• 7.   WASTE DISPOSAL:
• 8.   LABOR:
• 9.   REGULATORY LAWS:
• 10.  TAXES:
• 11.  SITE CHARACTERISTICS:
• 12.  COMMUNITY FACTORS:
• 13.  VULNERABILITY TO WARTIME ATTACK:
• 14.  FLOOD AND FIRE CONTROL:
• EXPLANATION OF TERMS USED IN THE PROJECT REPORT
• DEPRECIATION:
• FIXED ASSETS:
• WORKING CAPITAL:
• BREAK-EVEN POINT:
• OTHER FIXED EXPENSES:
• MARGIN MONEY:
• TERM LOANS:
• TOTAL LOAD:
• RAW MATERIAL SUPPLIERS
• MALTS
• HOPS
• YEAST
• MACHINERY SUPPLIERS
• COMPLETE MACHINERY
• DESTONER
• MALT MILL
• PALLETIZER
• BEER FILTER
• FERMENTER
• PASTEURIZER
• FILLED BOTTLE INSPECTOR
• MACHINERY PHOTOGRAPHS
• MILL SYSTEM
• MASH SYSTEM (MASH TUN&LAUTER TANK)
• HOT WATER TANK
• MASH PUMP
• PLATE HEAT EXCHANGER
• HOPS FILTER
• WORT INSPECTION PLATFORM
• WORT BALANCE TANK
• COMBINATION OF MASH PIPELINE
• VENTURIFOURWAY  
• THERMOMETRIC
• OXYGENATION COMBINATION
• FERMENTATION TANK
• REFRIGERATING SYSTEM - GLYCOL WATER TANK
• STERILIZATION TANK
• RAW MATERIAL PHOTOGRAPHS
• MALTS
• HOPS
• YEAST
• PLANT CAPACITY
• GENERAL
• PRODUCT DEMAND
• RAW MATERIAL AVAILABILITY
• ECONOMICS OF SCALE
• CHOICE OF CAPACITY
• PACKAGING
• PACKING STANDARDS:
• 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
• REQUIREMENT OF POWER
• SECTION WISE POWER REQUIREMENT
• CONNECTED ELECTRICAL LOAD AT A GLANCE
• EFFLUENT TREATMENT AND DISPOSAL
• INTRODUCTION
• 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
• RAW MATERIAL QUALITY
• 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 LATOUT
• TURNKEY CONSULTANT
• IMPLEMENTATION SCHEDULE

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)