Rajasthan Pollution Regulator Orders Carlsberg to Close Its Alwar Brewery in India

Rajasthan Pollution Regulator Orders Carlsberg to Close Its Alwar Brewery in India

Danish brewer Carlsberg has reportedly been ordered to shut its brewery in Alwar, in the north-western Indian state of Rajasthan, after regulators found particulate emissions nearly eight times the permitted limit. The Rajasthan State Pollution Control Board has revoked Carlsberg India’s consent to operate the site and told the local power utility to disconnect its electricity supply.

The order also cites poor reporting. The brewery sent only 35.12 per cent of the pollution-monitoring data it was required to pass to the central regulator, against a mandatory threshold of 85 per cent. The move followed an inspection in July by India’s central pollution authority and a recommendation in August that the plant be closed. The consent now withdrawn had been granted on 24 April 2024 and was due to run until 31 October 2028. The state board’s decision therefore came after both national-level scrutiny and a formal call for closure, rather than as a sudden step.

A senior industry official told The Economic Times that beer supplies in Rajasthan are expected to be disrupted. The commercial damage is likely to be limited, however, because the closure comes after the peak summer selling season. Just Drinks, which first reported the story, contacted the state board for comment, while Carlsberg declined to comment on the order.

The timing is awkward for the group’s plans in the country. Carlsberg told Just Drinks that the Securities and Exchange Board of India (SEBI) has given conditional approval for a possible initial public offering of its Indian business. Draft listing papers were filed in July, and the offering is expected to raise about $700 million. The closure order lands while that listing is still in preparation.

India has become one of Carlsberg’s main growth markets. In its 2025 annual report the company described the country as a “compelling growth opportunity”, pointing to a rising preference for beer among young adults. Its share of the Indian market has grown from 5 per cent in 2011 to 23 per cent in 2025, and the business delivered high single-digit percentage growth last year with brands including Carlsberg, Tuborg and the super-premium 1664 Blanc. At group level, revenue rose 2.6 per cent to Dkr47 billion ($7.03 billion) in the first half of 2026, while operating profit climbed 4.5 per cent to Dkr7.45 billion.

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