Carlsberg secures alternative packaging suppliers in India, Nepal amid regional supply disruptions

INDIA – Carlsberg has secured alternative packaging suppliers in India and Nepal and has no concerns about supply constraints, the Danish brewer’s chief executive announced, as the company navigates regional supply chain disruptions affecting glass bottles, aluminium cans, cartons, and labels for its beer operations in South Asia.

The announcement follows a letter sent to the Indian government on April 2 by the Federation of European Businesses in India, whose members include Carlsberg, Heineken, and AB InBev, highlighting that can and bottle supplies were constrained as local manufacturers were not able to operate at optimal capacity due to the Middle East conflict.

The federation requested a temporary customs duty waiver on packaging imports for aluminium cans and glass bottles, noting that exploring alternative sourcing options could add 30% to industry costs.

The Packaging Supply Challenge in India

India’s US$65 billion alcohol market has faced higher costs for glass bottles, cartons, and labels as a result of the crisis. 

The drinks industry in the country is already facing up to a 15% cost increase due to higher prices of raw materials like cartons and adhesives. 

Unlike in many markets where price increases can be implemented quickly, retail price changes require government approvals in approximately two-thirds of India’s 28 states, limiting brewers’ ability to pass on higher packaging costs to consumers.

Carlsberg’s Broader Commitment to India

The packaging supply assurance comes as Carlsberg deepens its commitment to the Indian market. 

The company has signed an MoU with the Ministry of Food Processing Industries committing ₹1,250 crore (approximately US$150 million) in investment, including ₹500 crore (approximately US$60 million) for a new greenfield brewery in Ahilyanagar, Maharashtra, ₹400 crore (approximately US$48 million) for brownfield expansion in Hooghly, West Bengal, and ₹350 crore (approximately US$42 million) for capacity enhancement at its Mysuru facility. 

Over the next three years, the company anticipates incremental procurement of ₹600 crore (approximately US$72 million) in raw materials and packaging supplies.

Nilesh Patel, Managing Director of Carlsberg India, highlighted that the investment will enhance operational capacity, strengthen supply chains, and increase excise revenue contributions, underscoring Carlsberg’s long-term commitment to India’s economic and industrial growth. 

The brewer also expects low single-digit growth in China for the year.

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