Industrial area or commercial zone for a brewery in India

Two kinds of brewery, two kinds of site

A brewpub sells most of its beer to guests on site. It needs to be where people eat and drink, which usually means a commercial area. A production brewery that packages beer for distribution needs space, trucks, effluent handling and heavy utilities, which usually points to an industrial area.

Microbreweries that both serve and package sit between the two. State rules decide which way they lean. Our guide to choosing a brewery location covers the wider questions.

What zoning controls

Land in Indian cities is zoned under master plans and development rules: residential, commercial, industrial, mixed use and others. Zoning controls what activities are allowed on a plot. Excise departments, pollution control boards and municipalities generally check that your premises are zoned and approved for your activity before granting licences.

Before signing a lease, ask your architect to confirm the zoning and the building's approved use. A cheap space in the wrong zone can mean a change of land use application or a refused licence.

Industrial areas

State industrial development corporations, such as KIADB in Karnataka and MIDC in Maharashtra, run industrial areas with plots and sheds for manufacturing. Advantages for a production brewery:

• Activity is permitted, which helps with pollution consent and factory-type approvals.
• Higher power connections and industrial tariffs may be available.
• Space for trucks, raw material storage, a packaging line and effluent treatment.
• Fewer neighbours who will complain about early morning brewing or delivery noise.

The trade-off is distance from customers. Few drinkers want to visit an industrial estate. Some states do not allow retail or on-site consumption there.

Commercial zones

Commercial areas suit brewpubs: footfall, visibility, parking and nearby offices and homes. The trade-offs are higher rent, smaller spaces, tighter neighbours and buildings not designed for heavy tanks. Utilities may be limited. Upgrading a power connection or adding drainage for brewery effluent can take time.

Check the building for floor loading, ceiling height for fermenters, access for tank delivery and a route for drains and vents. Many good restaurant spaces fail as brewpub spaces on one of these.

Pollution consent and effluent

Brewing produces wastewater with high organic load from cleaning, spent grain and yeast. State pollution control boards classify activities by pollution potential. Breweries often fall in a stricter category than restaurants. Classification for microbreweries and brewpubs varies by state. You may need consent to establish before building and consent to operate before brewing, with conditions on effluent treatment.

An industrial area may have a common effluent treatment plant. In a commercial area you may need your own treatment before discharge to sewer. Factor the space and cost into your site choice.

Water and power

A brewery uses several litres of water for every litre of beer, once cleaning is counted. Check whether the site has reliable municipal supply, a borewell with permission to draw or a tanker plan. Test the water too. Power needs depend on heating method: an electric brewhouse plus glycol chiller needs a large connected load and a backup plan for outages. Our guide to brewery water and power goes into the numbers.

Neighbours and hours

Brewing starts early. Deliveries of malt and kegs, the noise of a mill and the smell of the boil are normal in an industrial area and can be a problem next to apartments. A brewpub in a mixed area also keeps late hours with music and crowds leaving. Complaints from residents can lead to inspections and, in the worst case, trouble at licence renewal.

Before choosing a site, visit at different times of day, look at who lives and works nearby and think about where trucks will park and where the boil vapour will go.

Making the call

List what your model needs: on-site sales, packaging, distribution, space for growth. Then score shortlisted sites on zoning, licence feasibility, utilities, effluent, rent and footfall. Talk to your licensing adviser and the pollution board's local office before signing anything. Our guide to microbrewery licensing covers the licence side.

Location mistakes are among the most expensive a brewery can make, because they cannot be fixed with a better recipe.

Common questions

Can a brewery operate in a commercial zone?

A brewpub usually can, subject to state rules and approvals. A larger production brewery usually needs an industrial area. Check zoning and licence rules in your state.

Why do pollution boards care about breweries?

Brewery wastewater carries a high organic load from cleaning, grain and yeast, so breweries often need consent and effluent treatment.

Can I serve beer in an industrial area?

Some states restrict on-site consumption and retail in industrial areas. Confirm with your licensing adviser before planning a taproom there.

What should I check before signing a lease?

Zoning and approved use, floor loading, ceiling height, drainage, water supply, power connection and whether the pollution board will grant consent.