Carlsberg India Ordered To Shut Alwar Brewery Over Pollution Breach Ahead Of $700 Million IPO

Carlsberg India has been ordered to shut down its Alwar brewery in Rajasthan after particulate emissions were found to be nearly eight times the permissible limit, posing a potential hurdle for the Danish brewer ahead of its proposed $700 million initial public offering (IPO).

The Rajasthan State Pollution Control Board (RSPCB) issued the closure order after the facility was found to have violated pollution norms, according to a report by The Economic Times. The brewery also transmitted only 35.12% of its mandatory pollution-monitoring data to the central regulator, against the required threshold of 85%.

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The RSPCB revoked the consent to operate granted to Carlsberg India's Alwar facility on April 24, 2024. The consent was valid until October 31, 2028, subject to compliance with prescribed conditions.

The board directed the company to shut down the plant and warned that failure to comply could invite further action under air and water pollution laws. It also directed the local electricity distribution utility to disconnect power to the facility.

The action followed an inspection by the central pollution regulator in July and its subsequent recommendation for closure in August. The shutdown is expected to affect beer supplies in Rajasthan.

The company had not commented on the closure order at the time of publication.

The regulatory action comes as Carlsberg India advances its proposed listing plans. On October 1, the company received approval from the Securities and Exchange Board of India (SEBI) for its confidential pre-filing of IPO documents, marking a key step towards a potential listing in India.

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The company has been preparing for the IPO for about a year and could seek a valuation of around Rs 30,000 crore.

In FY25, Carlsberg India reported net sales of Rs 8,939 crore and a net profit of Rs 443 crore.