Carlsberg faces a pollution hiccup ahead of IPO

Rajasthan's pollution control board has revoked Carlsberg India's operating consent for its Alwar brewery, ordering its closure due to particulate emissions nearly eight times the permitted limit. This comes as a hurdle for the Danish brewer's upcoming $700 million initial public offering. Supplies to Rajasthan will be impacted, though the effect is likely limited as the closure follows the peak summer season.

The brewery transmitted only 35.12% of its required pollution-monitoring data, below the mandatory threshold of 85%. The state board revoked the consent on April 24, 2024, valid until October 31, 2028, after a central regulator's inspection and recommendation for closure in July and August. Carlsberg India's local electricity distribution utility was directed to disconnect power from the facility.

The company did not comment on the action. The move occurs as Carlsberg India readies for a stock market listing, with the Securities and Exchange Board of India recently providing its observations on the IPO proposal. Carlsberg has been preparing for the listing for about a year, potentially seeking a valuation of around ₹30,000 crore.

The company's net sales and profit were ₹8,939 crore and ₹443 crore in the financial year ending March 2025. Global brewers are seeing opportunities in India due to rising incomes and a large consumer base, with Carlsberg India trailing behind market leader United Breweries. Regulatory issues have previously disrupted beer companies' operations in India, as seen with B9 Beverages, which faced sales disruptions after changing its corporate name.