Carlsberg India’s $700 Million IPO Plans Face New Regulatory Hurdle

Rajasthan’s pollution control board has revoked Carlsberg India’s consent to operate its Alwar brewery and ordered the facility to shut down after finding particulate emissions nearly eight times above the permitted limit. The regulatory action comes as the Danish brewer advances preparations for a proposed $700 million initial public offering of its Indian business.

The order also cited gaps in pollution monitoring, stating that the brewery transmitted only 35.12 percent of its required monitoring data to the central regulator, against the mandatory threshold of 85 percent. The state board had granted the plant consent to operate on April 24, 2024, valid until October 31, 2028, subject to compliance with prescribed conditions.

Following an inspection by the central pollution regulator in July and a closure recommendation in August, the state board directed the company to shut the facility. It also instructed the local electricity distribution utility to disconnect power and warned of further action under air and water pollution laws if the order was not followed.

The closure is expected to affect beer supplies in Rajasthan, although a senior industry official said the impact would likely be limited because the action came after the peak summer season. Carlsberg India did not respond to a request for comment.

The development adds a regulatory challenge as the company moves towards a potential stock market listing. Earlier this month, the Securities and Exchange Board of India issued its observations on the proposed IPO, a key step in the process. The offering is expected to raise about $700 million. Carlsberg has been preparing for a listing for about a year, and people aware of the matter have said the company could seek a valuation of around Rs 30,000 crore. A final valuation and listing timetable have not been publicly confirmed.

In February, Carlsberg chief executive officer Jacob Aarup-Andersen confirmed that the company was exploring an IPO of its Indian business and assessing whether a listing would create sufficient shareholder value.

Carlsberg India, which sells Carlsberg and Tuborg beers, reported net sales of Rs 8,939 crore and net profit of Rs 443 crore in the financial year ended March 2025. Rival United Breweries reported revenue of Rs 19,400 crore and net profit of Rs 442 crore during the same period, with a market capitalisation of Rs 35,377 crore.

The Indian beer market is led by United Breweries, followed by Anheuser-Busch InBev and Carlsberg. Regulatory and licensing changes have previously disrupted beer distribution in the country. B9 Beverages, the maker of Bira beer, faced months of sales disruption after changing its corporate name to a public limited entity, requiring label re-registration and renewal of approvals across states and resulting in a write-off.