Hyderabad: As temperatures rise and summer approaches, beer companies are preparing to ramp up production to meet the expected surge in demand. Currently, only 70% of the state’s total beer production capacity is being utilised, but breweries are now considering extending operations to a third shift.
The state has six breweries, including two owned by United Breweries, with a combined capacity to produce approximately 69 lakh cases of beer per month. However, due to various operational and regulatory constraints, only around 40 lakh cases are currently being supplied.
A source familiar with the industry dynamics said, “At present, full-scale production is not taking place. However, if the excise department provides a viable financial formula, companies are prepared to increase output to meet the summer demand.”
United Breweries alone contributes around 35 lakh cases per month, while the second-largest player in the state has the capacity to produce 23 lakh cases. The remaining two smaller breweries can each generate approximately 5.5 lakh cases. To bridge the supply-demand gap, breweries are exploring the option of operating in three shifts, extending work hours to 16 hours per day.
Additionally, industry data reveals that these breweries collectively manage 15 to 17 registered beer labels, while a total of 168 labels are registered in the state. Among them, six belong to non-local companies.
With demand set to spike in the coming months, all eyes are now on the excise wing’s decision, which could determine whether breweries can maximise their production potential in time for peak consumption season.
The state has six breweries, including two owned by United Breweries, with a combined capacity to produce approximately 69 lakh cases of beer per month. However, due to various operational and regulatory constraints, only around 40 lakh cases are currently being supplied.
A source familiar with the industry dynamics said, “At present, full-scale production is not taking place. However, if the excise department provides a viable financial formula, companies are prepared to increase output to meet the summer demand.”
United Breweries alone contributes around 35 lakh cases per month, while the second-largest player in the state has the capacity to produce 23 lakh cases. The remaining two smaller breweries can each generate approximately 5.5 lakh cases. To bridge the supply-demand gap, breweries are exploring the option of operating in three shifts, extending work hours to 16 hours per day.
Additionally, industry data reveals that these breweries collectively manage 15 to 17 registered beer labels, while a total of 168 labels are registered in the state. Among them, six belong to non-local companies.
With demand set to spike in the coming months, all eyes are now on the excise wing’s decision, which could determine whether breweries can maximise their production potential in time for peak consumption season.
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