2. OBJECTIVES
To educate public in beer
appreciation and beer quality.
To build a local beer
community.
To promote positive attributes
of growing craft beer culture.
To create a meeting space in
brewery that is loved by the
youth community.
To be profitable and grow
through local as well as
regional sale.
2
3. INTRODUCTION
PROCESS
Craft beer production involves malting, boiling of grains, and fermentation. The head
brewer should be able to identify the consumption of barley/wheat grains at each
step, to optimize production. The grains are then put into hot boiling water to
activate enzymes that extract sugar out of these grains. After that, the fermentation
process takes place in huge fermenters enabling alcohol production. These four steps
lead to the production of freshly brewed beer.
3
A microbrewery (also known as craft brewery) is a small beer manufacturing
unit that produces small amounts of beer in a batch. Microbreweries are
independently owned, and they cater to a niche audience. Microbreweries
distinguish themselves from large scale corporate breweries based on the
quality, brewing techniques, the flavor of the brews and more.
5. WHY MICROBREWERY?
5
• The concept of microbreweries was introduced in India way back in 2006 -07.
But, due to stringent laws, it didn’t really take off till the 2010s. As per 2018
studies, it was found out there are over hundreds of microbreweries
operating in India in 2018, and many more are set to open in the country, in
the next few years. Microbreweries have been growing at a rapid rate of 22-
30% per annum.
• With deep-pocketed investors and a well-heeled population with a
disposable income, Bangalore today is an exciting place for the brewer as
much as it is for the craft beer lover
7. Key questions to be asked while doing demand analysis
• What is the total market size by 2030 and what would be the expected growth rate of market?
• What is the total market size per segment and region in 2019-2020 and what would be the
expected market size per segment and region over the forecast period?
• What are the key market trends?
• What are the factors which are driving this market?
• What are the major barriers to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities for the existing and entry level players?
• What are the recent developments and business strategy of the key players? 7
8. MACHINERY EQUIPMENTS
The necessary equipment that we would need in a brewery would be a separate water tank, water softener
machine, an RO machine setup, and separate fermenters. Other types of equipment that you may require are
mentioned below.
• Mashing tuns and Kettles
• Refrigeration machine
• PHEs (Physical Heat exchangers)
• Electric Cabinet
• Beer Filters
• Boiler
• Distribution Tanks
• PLC touch-type process controller
• Serving System
• Lauter Tuns
• Fermenters
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12. Mashing and Mash Tun
• Capacity of mash tun in HL (Gross and net Diameter of mash tun v/s
lauter tun
• Heating mechanism- electrical element/boiler steam
• If electrical element:
number and position of coils
Provision of circulation across external calandria
Heating time from ambient to 100 deg C
Voltage and whether voltage regulation is a possibility.
13. • If boiler:
oil fired/propane fired
Water heating time from ambient to steam
Auto cut off mechanism at specific temperature and pressure
Water tank holding capacity and max pressure generation
MS lines whether redox coated & location of boiler.
• Mash tun to lauter tun pipe diameter, whether decoction a possibility.
• PLC: Automatic/ Semiautomatic- Step infusion mashing a possibility
from 35 deg C.
• Exhaust line: hood or condensate line from Kettle &/ Mash tun.
14. • Brew house vessel system-2/3/4, whether any extra provision of
holding tank with heating system.
• Type of sensors: RTD/ PT 100
• Tank volume properly marked in level gauge in graduation of 50 litres.
• Origin of tanks: Europe/India/China/Others
• Mechanism of mashing: Single infusion/Multiple infusion/Decoction
• Tanks surface with copper cladding (electroplated)/ Copper
strips/Polished steel-B finish (interior/exterior).
15. • Steel used: non radioactive with proper certification from 3rd party,
Minimum SS 304 for steel sheets and SS310 for valves.
• Butterfly valves in all tanks except ball valves in boiler and glycol lines
for manual operation.
• Mash tun agitator RPM
16. Latur tun
• Lauter tun: single sieve/ double sieve. Sieve pore size
• Provision of underlet water line at start of lautering.
• Water circulation time, Scraper RPM & Manhole size
• Ratio of diameter of lauter tun in comparision to mash tun, minimum
and max grain bed height recommended.
• Sparging ball position, and sparging pressure.
• Supernatant tank cone capacity.
• View glass and level guage to control clarity of liquid, minimum run
off volume in ideal case & provision of a flowmeter
17. Whirlpool
• Whirpool: tank capacity, height of inlet and pressure at inlet, pump
HP
• Depth of sump for discharge of hot break, wort discharge line height
from sump.
• Whether can be used as a HLT, with a heating element.
18. Kettle
• Separate kettle or mash tun to double up as a kettle.
• Kettle net and gross volume.
• Max heating temperature and total time required for unit boil volume
to reach it.
• Boiling pressure and whether internal or external calandria system.
• Agitator speed in RPM, whether Chinese hat present.
19. Mill
• Number rollers present in mill: 2/3/4/6, whether all rollers are
mobile or a few stationary.
• Mill hopper to roller line provided with magnets to remove metal
particles and siphon action to remove dust and broken grains etc.
lighter than actual malt. Provision of grill over the hopper.
• Minimum and maximum adjustment possible in roller gaps.
• Milling motor HP.
• Type of milling : Dry/Wet
• Location of mill: overhead mash tun in mezzanine floor with grist case
and auger control (ideal)/ Underneath in basement.
20. YEAST PITCHING & PROPAGATION
• Capacity in volumes for yeast pitcher.
• Type of aeration: hot side (candle filtered air)/ cold side (food grade pure
oxygen)
• Max and min aeration pressure.
• Whether yeast propagator available, yeast propagator capacity, yeast
propagator agitator RPM
• Number of yeast storage tanks and capacity, provision of separate PLC
control for pressure temperature and pitching operations. Level gauges for
all tanks
• Yeast pitching pump HP, clear glass for visual adjustment and flow meter to
regulate volume of yeast pitched.
21. CHILLER & COMPRESSOR
• TR of glycol chiller
• Type of glycol being used: Ethylene glycol/Propylene glycol, ratio of
Water: Glycol used.
• Compressor capacity based on volume of total capacity of storage
(Fermentors + BBTs + Storage tanks-if any), for subsequent gradual
temperature drop from 30 to -2 deg C, as per requirement and style
of beer.
• CLT capacity
• Generator automatic switchover during power failure.
22. CIP SYSTEM
• Capacity of caustic and acid tank.
• CIP pump HP
• Minimum and maximum caustic and acid percentage recommended
• Recommended circulation time for unit size for effective CIP.
• Provision of extra water line addition for rinsing purpose or for dozing
sterilization chemical
23. FILTRATION SYSTEM
• Type of filter used: sheet and frame plate/ Kiselguhr filter/ Simple candle filter .
• Pore size of filter paper/sieve/ candle.
• Number of sieves/filter paper/ candles
• Minimum and maximum flow in Hl/hr demonstrated across a flowmeter and side glass to
check visually for clarity.
• Sampling valve in filtration unit to compare samples after and before filtration and check
for DO/CO2 etc.
• Whether provision of alcolyzer, OD (at 90 & 25 Deg), pH attached to filtration unit.
• Provision for blending with deoxidized water for high gravity brewing.
• Type of filter aid if at all used eg Hyflow celite 512, 522 etc.
• Whether the kiselguhr dosing tank has a agitator, provision of using DA water to stop any
kind of oxygen uptake.
24. FERMENTATION & BRIGHT BEER TANKS (BBTs)
• Number of fermenters and their type: CCT or flat bottom.
• Number of BBTs
• Net and Gross capacity of fermenters and BBTs
• PRV installation connected to pressure sensors with PLC adjustment.
• Maximum pressure tolerance by tanks.
• Type of temperature probes and whether connected to PLC.
• Separate PLC and chiller for cold room area (fermenters & BBts)
• Sampling valve, cone height, cone volume, discharge line diameter and no of legs for fermenters
and BBT.
• Whether fermenters can also double up as Unitanks, with temperature going down to below 0
deg C.
• Minimum head room requirement for fermenters.
• Provision of extra pump for yeast and beer transfer and its HP. Provision of CO2 purging apparatus
along with Co2 cylinders.
25. DISPENSING SYSTEM
• Number and types of beers on tap.
• Counter pressure by CO2/N2/Mixed in ration for dispensing across kegs
Provision of primary an tertiary regulators.
• Whether to be dispensed across kegerators or directly from storage
tanks/BBts.
• Glycol chilled lines are up to tower or till the tap across chilling blocks.
• Proper angle of dispensing for: Ales, Stouts and Pilsner/Lager.
• Minimum and max temperature of dispensing.
• Cleaning and sterilizing procedure of dispensing tower.
• Kegging apparatus provision along with keg washer.
• Capacity of kegs and numbers, minimum and maximum pressure tolerance
26. Water Treatment Plant
• Type of water treatment plant: RO/Activated Carbon and candle filter.
• Source of water: Underground/Municipality
• Original and treated water analysis: Mineral content, TDS, pH, Hardness, SPC and
Acidity
• Provision of iron filter.
• pH of water alkalinity required in brewing water specific to brews. Whether salts
will be supplemented for such purpose e.g. Calcium chloride, gypsum etc.
• Water filtration rate: Liters/hour
• Type and volume of treated water storage.
• Calculated volume of brewing water required per brew.
27. Effluent Treatment Plant
• Type of ETP: Aerobic/Anaerobic
• Components of ETP and area covered
• Analysis of untreated water: TDS, pH, COD, BOD, Dissolved and particulate
matter in compliance with local PCB.
• Whether yeast is drained, propagated for subsequent generations and then
drained, Dried into yeast cakes in yeast driers ( if so capacity of yeast
driers), mixed with spent grain and sold as feed ( ratio of spent grain :
yeast).
• Method of handling spent grain: Discharged into ETP or Sold to cattle
farmers as feed (recommended)
• Handling of highly organic solid wastage from ETP.
28. Ancillary and Miscellaneous
• Spare valves, dispensing taps, Kegs (Plastic/Steel, 25/30/50 litres) extra
hoses, valve fittings, clamps, gaskets, Extra pump for tank to tank transfer,
Filter papers, candle filters and any other ancillary stock.
• Raw material inventory & Specification sheets: Base malts, Specialty malts,
Adjuncts (ambient storage at around 20 deg C, RH below 10 %) Additives
(E.g. Enzymes, etc. if any), Hops, Yeast (both require cold storage below 4
deg C), Chemical storage (Hazardous/ Non Hazardous).
• Provision of laboratory: Attached to microbrewery, small and secluded /
separate more sophisticated with larger array of tests.
• Basic laboratory requirements: Compound microscope (100 X, oil
immersion illuminated), slides, cover slips, basic analytical reagents, dyes
and chemicals, Haemocytometer, PH meter, Hydrometer (0-10, 10-20, 2
each), Thermometers, Bunsen burner and Standard glassware.
29. • Organized brew charts, Daily production capacity, Fermentation charts, BBT
data, Excise flowmeter data, licenses, Inventory data, Analysis sheets, etc.
maintained in soft copy in a work station.
• Staff: Brew master, Assistant Brew master, Operators and supporting staff.
• Carbon dioxide and Oxygen cylinders, sterilizing chemicals, Caustic flakes
and acids for CIP maintained along with inventory.
• Cleaning equipment, Plumbing fitting, electrical fittings and literature
related to machinery and servicemen along with AMC details and electrical
and machine drawings.
• Whether in future, plan of expansion includes bottling and kegging lines
and space allocation for the mentioned.
30. RESOURCE , CAPITAL & LOCATION
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• The microbrewery must also be located at a place that is easily
accessible by the target customer base. Areas nearby corporates make
a great location for microbreweries as they can attract the working
population looking to rewind after a long day.
• The minimum space required to open a microbrewery is 700-800
square feet.
• The total cost, including licenses, rental costings, and other minute
costs, will be around 1-2 crores as a whole.
• we are not eligible to even stand in the queue for getting a
liquor/brewery license before setting up your place and machinery.
32. PRICE OF EQUIPMENTS
STANDARD EQUIPMENT BATCH SIZE:
A.2 HL B. 2.5 HL C. 3 HL D. 5 HL E. 10 HL
HL CORRESPONDS TO 100 LTRS
• FACTORS GOVERNING STANDARD EQUIPMENT PRODUCTION/STORAGE
CAPACITY
A. 4 BEERS ON TAP
B. 6 BEERS ON TAP
C. SINGLE/DOUBLE BATCH FERMENTERS/BBTs
D. EXTRA FERMENTER/BBT FOR SEASONAL BEERS
33. Average price of standard equipment
Indian equipment:
• 1. 3 hl : 80 lacs
• 2. 5 hl: 1 cr
• 3. 10 hl: 1.6 cr (with boiler)
Chinese equipment:
1. 2 hl: 56 lacs
2. 2.5 hl: 63 lacs
3.3 hl: 70 lacs
4. 5 hl: 80 lacs
34. • Hybrid equipments –Indo Chinese
1. 2 hl: 65 lacs
2. 2.5 hl: 73 lacs
3. 3 hl: 80 lacs
4. 5 hl: 92 lacs
• Hybrid equipments- Indo European
1. 2.5 hl : 1.2 cr
2. 5 hl: 2.1 cr
3. 10 hl: 2.8 cr
• European equipments:
1. 2.5 hl: 1.5 cr
2. 3 hl:2.2 cr
3. 5 hl:2.6 cr
• We are only going to consider 3 hl plants as they are common for all fabricators
of different origins
35. AVERAGE PRICE OF RAW MATERIALS
• MALT PRICE
• INDIAN(50 KG BAGS)
1. BASE MALT: Rs 55/kg
2. SPECIALITY MALT: Rs 130/KG
• IMPORTED ( 25 KG BAGS)
1. BASE MALT: Rs 108/KG
2. SPECIALITY MALT: RS 164/KG
• NOTE: Base quantity order should be ideally base malt: speciality malt:: 75:25 in
proportion
36. • MINIMUM MALT ORDER 1000 KG
• LOGISTICS, EXCISE AND OTHER TAXES EXTRA
• 15 DAYS ORDER PRIOR TO OEPRATION
• INITIAL INDIAN MALT ORDER: Rs 75,000 APPROX
• INITIAL IMPORTED MALT ORDER: RS 1,25,000 APPROX
AVERGAE YEAST PRICE (LAGER & ALE, ALL IMPORTED, POWDER DRY YEAST)
1. ALE YEAST: Rs 13000/kg
2. WHEAT YEAST: RS 16000/KG
3. LAGER YEAST: RS 19500/KG
4. CIDER YEAST: RS 9000/KG
AVERAGE HOPS PRICE (BITTER & AROMATIC, ALL IMPORTED, PELLET FORM)
1. BITTER: RS 1650 /KG
2. AROMATIC: RS 3000/KG
37. Other essential raw materials and non raw
material's price
Average price quoted for non raw materials for initial startup:
1. GLYCOL: RS 40,000
2. OXYGEN CYLINDER: RS 10,000
3. CARBON DIOXIDE CYLINDER: RS 10,000
4. CAUSTIC SODA: RS 1000
5. ACID: RS 3000
6. STERILIZING AGENT: RS 2500 TOTAL : RS 67,000 APPROX+ LOGISTICS + TAXES
38. SETUP COST
Basic requirements for equipment installation based on the existing location
1. DRAINAGE AND PLUMBING
2. WATER LINES, PUMPS AND WATER STORAGE TANKS
3. CIVIL AND MECHANICAL WORK
4. ELECTRICAL WORK
• Charges can vary from Rs 3 lac to 8 lacs, average Rs 5 lacs is estimated.
• Equipment technicians remuneration- 3.2 Lakh
Other verticals
1.EFFLUENT TREATMENT PLANT (ETP): RS 3 LACS
2. WATER TREATMENT PLANT(WTP)/RO PLANT: RS 3 LACS ALONG WITH
ESSENTIAL CHEMICALS TOTAL :RS 6 LACS
• Thus final setup cost: RS 14 LACS APPROX
39. RESTAURANT SETUP
TOTAL SITTING CARPET AREA : 2000 SQ FT FOR 100 PERSON
• SETUP FOR SITTING: RS 5 LACS
• ELECTRICAL FITTINGS/LIGHTS: RS 2 LACS
• ENTERTAINMENT: RS 7 LACS
• CENTRALIZED AIR CONDITIOING: RS 4 LACS
• MISCELNIOUS : RS 2 LACS
• TOTAL: RS 20 LACS
40. THE LEGALITIES(EXCISE POLICY
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KARNATAKA (came in force in 2010)
In 2010, it was one of the first states in the country to come up with
corresponding rules and policies. The Karnataka Brewery Rules, 1967 was
amended to allow bars, clubs and hotels to open microbreweries. Apart
from a one-time permit fee of Rs 2.5 lakh, microbreweries are required to
pay excise duty of Rs. 17.5 per litre. The excise department imposed a flat
tax on 50 per cent of the installed. The Rules also specify that the
minimum space between the floor and ceiling of the microbrewery should
be 14 feet.
41. SWOT ANALYSIS 41
• CAPITAL NEEDED IS NOT
SUBSTANTIAL
• THREAT FROM MASS
PRODUCTION BEER
MANUFACTURERS
• HIGH SUBSTITUTION
RATES
• LACK OF TRAINED HEAD
BREWER
• CONSUMER DEMAND
INCREASE
• SALES VOLUME
INCREASE
• BEER INDUSTRY LOW
FAILURE
• BARRIERS TO ENTRY
• DISTRIBUTOR OR
SUPPLIER LINKING
• HIGHER PRICE
• NOT NATIONALLY
DISTRIBUTED
• QUALITY DEPENDS
ON FRESHNESS
• QUALITY
UNIQUENESS
• HIGH PROFIT
MARGIN
• EXCLUSIVE IMAGE
STRENGTH WEAKNESS
THREAT
OPPORTUNITY
