Carlsberg India ordered to shut Alwar brewery over pollution violations ahead of $700 million IPO
The action followed an inspection conducted by the Central Pollution Control Board in July 2026 and subsequent recommendations for closure
- Oct 14, 2026,
- Updated Oct 14, 2026 3:46 PM IST
Carlsberg India has been ordered to shut down its brewery in Alwar, Rajasthan, after the state pollution control board found significant violations of environmental norms. The regulatory action comes at a crucial time for the Danish brewer, which is preparing to list its Indian business through a proposed $700 million initial public offering (IPO), as reported by CNBC TV18.
The Rajasthan State Pollution Control Board (RSPCB) revoked the facility’s consent to operate, citing particulate matter emissions nearly eight times above the prescribed limit. The brewery recorded emissions of 633 mg/Nm³, against the permissible ceiling of 80 mg/Nm³.
The facility also failed to meet mandatory pollution-monitoring requirements. The regulatory order reportedly found that the plant uploaded only 35.12% of its required emissions-monitoring data to the Central Pollution Control Board’s online portal, significantly below the stipulated threshold of 85%.
READ THIS: Delhi new liquor policy to roll out soon; prices may increase, more premium stores likely
Following the violations, the state board directed the company to immediately close the facility. It also instructed the local electricity distribution utility to disconnect power to the plant. Failure to comply with the directions could invite further action under applicable air and water pollution laws.
The action followed an inspection conducted by the Central Pollution Control Board in July 2026 and subsequent recommendations for closure. The Alwar unit had received consent to operate in April 2024, valid until October 31, 2028, subject to compliance with the prescribed conditions.
Impact on beer supplies and operations
The closure is expected to affect Carlsberg’s beer supplies in Rajasthan. However, the immediate impact on sales could be limited, as the shutdown comes after the peak summer season, when beer consumption typically rises.
Carlsberg India operates a network of owned breweries and contract manufacturing facilities across several states. The availability of alternative production facilities could help the company manage some supply disruptions, although the extent of the impact remains uncertain.
The company, which sells popular beer brands including Carlsberg and Tuborg, reported net sales of ₹8,939 crore and a net profit of ₹443 crore in the financial year 2024-25.
IPO plans face regulatory scrutiny
The shutdown order adds a regulatory challenge as Carlsberg India advances its listing plans. The company confidentially filed draft IPO documents in July 2026, and the Securities and Exchange Board of India (SEBI) approved the confidential pre-filing on October 1.
ALSO READ: 19 died in Nagaland after suspected adulterated liquor consumption, police launch probe
The proposed offering could be worth approximately $700 million, or around ₹6,600 crore, and is expected to involve an offer for sale by existing shareholders rather than raising fresh capital for the business.
The environmental violations could draw greater scrutiny from prospective investors, particularly regarding regulatory compliance, operational risks and corporate governance.
Carlsberg India will now need to address the pollution-related concerns and work towards meeting regulatory requirements before its Alwar facility can resume operations. The company had not responded to media requests for comment at the time of reporting.
Carlsberg India has been ordered to shut down its brewery in Alwar, Rajasthan, after the state pollution control board found significant violations of environmental norms. The regulatory action comes at a crucial time for the Danish brewer, which is preparing to list its Indian business through a proposed $700 million initial public offering (IPO), as reported by CNBC TV18.
The Rajasthan State Pollution Control Board (RSPCB) revoked the facility’s consent to operate, citing particulate matter emissions nearly eight times above the prescribed limit. The brewery recorded emissions of 633 mg/Nm³, against the permissible ceiling of 80 mg/Nm³.
The facility also failed to meet mandatory pollution-monitoring requirements. The regulatory order reportedly found that the plant uploaded only 35.12% of its required emissions-monitoring data to the Central Pollution Control Board’s online portal, significantly below the stipulated threshold of 85%.
READ THIS: Delhi new liquor policy to roll out soon; prices may increase, more premium stores likely
Following the violations, the state board directed the company to immediately close the facility. It also instructed the local electricity distribution utility to disconnect power to the plant. Failure to comply with the directions could invite further action under applicable air and water pollution laws.
The action followed an inspection conducted by the Central Pollution Control Board in July 2026 and subsequent recommendations for closure. The Alwar unit had received consent to operate in April 2024, valid until October 31, 2028, subject to compliance with the prescribed conditions.
Impact on beer supplies and operations
The closure is expected to affect Carlsberg’s beer supplies in Rajasthan. However, the immediate impact on sales could be limited, as the shutdown comes after the peak summer season, when beer consumption typically rises.
Carlsberg India operates a network of owned breweries and contract manufacturing facilities across several states. The availability of alternative production facilities could help the company manage some supply disruptions, although the extent of the impact remains uncertain.
The company, which sells popular beer brands including Carlsberg and Tuborg, reported net sales of ₹8,939 crore and a net profit of ₹443 crore in the financial year 2024-25.
IPO plans face regulatory scrutiny
The shutdown order adds a regulatory challenge as Carlsberg India advances its listing plans. The company confidentially filed draft IPO documents in July 2026, and the Securities and Exchange Board of India (SEBI) approved the confidential pre-filing on October 1.
ALSO READ: 19 died in Nagaland after suspected adulterated liquor consumption, police launch probe
The proposed offering could be worth approximately $700 million, or around ₹6,600 crore, and is expected to involve an offer for sale by existing shareholders rather than raising fresh capital for the business.
The environmental violations could draw greater scrutiny from prospective investors, particularly regarding regulatory compliance, operational risks and corporate governance.
Carlsberg India will now need to address the pollution-related concerns and work towards meeting regulatory requirements before its Alwar facility can resume operations. The company had not responded to media requests for comment at the time of reporting.