India’s beer makers are running into a big problem: they don’t have enough cans. A sharp rise in beer demand, growing competition from soft drink companies, and new government regulations have created a serious shortage.
Right now, India has only three plants that make cans, and all the aluminum needed for production is imported. On top of that, new BIS (Bureau of Indian Standards) rules—made mandatory from April this year—for both locally made and imported cans have made the situation worse. As a result, the industry is facing a shortfall of about 12 to 13 crore (120–130 million) beer cans every year, which is roughly 20% of what the market needs.
Because of excise laws, beer in India can only be sold in bottles or cans—there are no other packaging options. So, if this issue isn’t addressed soon, brewers fear the shortage will only get worse.
Vivek Gupta, MD & CEO of United Breweries (UBL), spoke about the issue in the company’s recent earnings call. He said that cans make up 22% of their total sales. In states like Uttar Pradesh, canned beer is even more popular—making up 75–80% of sales and growing steadily.
