How to Obtain a Microbrewery License in Bangalore, Karnataka (2026 Guide) + New AIB Policy Explained

How to Obtain a Microbrewery License in Karnataka (2026 Guide) + Understanding the New AIB Policy

Introduction

Karnataka has one of India’s most developed craft beer markets, especially in cities like Bengaluru, Mysuru, and Mangaluru. Over the years, the state has seen strong growth in:

• Brewpubs
• Hospitality breweries
• Draught beer culture
• Premium dining experiences

Because of this growing demand, Karnataka was among the first Indian states to formally introduce microbrewery licensing under the Karnataka Excise (Brewery) Rules.

In 2026, Karnataka also introduced important amendments related to:

• Alcohol-In-Beverage (AIB)
• Beer taxation
• Additional excise duties
• Draught and bottled beer structures

under the Karnataka Excise (Excise Duties and Fees) (Amendment) Rules, 2026.

This guide explains:

• How to obtain a microbrewery license in Karnataka
• Eligibility requirements
• Brewery operational conditions
• Technical planning considerations
• Impact of the new AIB policy

What Is a Microbrewery Under Karnataka Rules?

According to the Karnataka Excise (Brewery) Amendment Rules, a microbrewery is defined as:

“a small brewery situated in a place on the premises of CL-4 or CL-6A or CL-7 or CL-9 licenses where Draught Beer is manufactured and served to customers for consumption within the premises with an installed capacity of not more than one thousand liters per day.”

This means Karnataka microbreweries are mainly designed for:

• Brewpubs
• Hotels
• Restaurants
• Hospitality breweries
• On-premise beer service

The policy primarily focuses on hospitality-integrated brewing rather than standalone packaging breweries.

Who Can Apply for a Karnataka Microbrewery License?

Businesses holding the following licenses may apply for a microbrewery license:

• CL-4
• CL-6A
• CL-7
• CL-9

Applications must be submitted to the Excise Commissioner through the Deputy Commissioner.

Minimum Requirements for Karnataka Microbrewery Licensing

Requirements for CL-7 License Holders

The premises must have:

• Minimum 100 double rooms in corporation areas
• Minimum 50 double rooms in other areas

Requirements for CL-9 License Holders

The premises must include:

• Minimum 10,000 sq. ft area
• Spacious dining hall
• Parking facility

Requirements for CL-4 License Holders

The premises must include:

• Minimum 10,000 sq. ft area
• Spacious parking facility

These requirements are specified under Rule 27A.

Karnataka Microbrewery Capacity Limit

The Karnataka policy allows:

• Maximum installed capacity of 1000 litres per day

This capacity limit is important because:

• Utility planning depends on production volume
• Fermentation capacity affects beer availability
• Glycol sizing changes with tank count
• Cooling load calculations become critical

Many hospitality businesses incorrectly oversize brewhouses without understanding:

• Actual beer demand
• Tank utilization efficiency
• Brewing frequency
• Utility operating costs

Businesses evaluating brewery sizing should also review our Choosing the Right Brewery Equipment: Avoiding Costly Sizing and Capacity Planning Mistakes guide.

Karnataka Microbrewery Application Process

Documents and Information Required

The application form requires:

• Applicant details
• Investment details
• Project report
• Premises description
• Pollution Control Board clearance
• Vessel and equipment descriptions
• Production capacity details
• Treasury challan confirming fee payment

These requirements are specified in Form-4 of the Karnataka Excise (Brewery) Rules.

This means breweries should prepare:

• Technical layouts
• Utility planning
• Brewery equipment specifications
• Process flow diagrams
• Water and drainage planning

before approaching the excise department.

Annual License Fees for Karnataka Microbreweries

According to Rule 27A:

• Annual microbrewery license fee: ₹2,40,000 Lakhs
• Additional license fee: 15% of the license fee

However, actual brewery investment may also include:

• Brewery equipment
• Glycol systems
• Electrical upgrades
• Steam systems
• HVAC systems
• Civil modifications
• Draft beer systems
• Fermentation tanks

Businesses should also review our How Much Does It Cost to Start a Microbrewery in India? (2026 Guide) article.

Quality Control Requirements

Mandatory Beer Testing and Chemist Requirements

Karnataka requires breweries to maintain proper quality control systems.

The rules specify:

• Chemist supervision
• Beer analysis
• Sample testing
• Laboratory reporting

The chemist should preferably have qualifications in:

• Chemistry
• Organic chemistry
• Bio-chemistry
• Alcohol technology

Beer can only be released after certification confirming suitability for human consumption.

Operational Conditions for Karnataka Microbreweries

Production and Serving Conditions

The Karnataka rules specify several operational requirements including:

• Beer alcohol content should not exceed 8% v/v
• Temperature, pH, and gravity records must be maintained
• Proper ventilation and hygiene must be maintained
• Beer dispensing systems must remain hygienic
• Beer may only be served within licensed premises

The rules also specify:

• Serving timing compliance
• Record maintenance
• Routine fumigation
• Equipment monitoring

This highlights the importance of operational discipline in hospitality breweries.

Understanding Karnataka’s New AIB Policy (2026)

What Is Alcohol-In-Beverage (AIB)?

One of the most significant updates in 2026 is the introduction of:

Alcohol-In-Beverage (AIB)

The Karnataka notification defines AIB as:

“the alcohol content/volume per litre of liquor such as Brandy, Whisky, Gin, Rum, Beer, Wine, Fruit Wine, Fortified Wine, Low Alcoholic Beverage and such other liquors consisting of or containing alcohol.”

This creates a more structured taxation framework based on:

• Alcohol content
• Beverage strength
• Product category

The policy affects:

• Beer taxation
• Excise calculations
• Product classification
• Additional excise duty structures

New Excise Duty Structure for Beer

Revised Beer Duty Rates

The Karnataka notification specifies revised duty structures for:

• Bottled beer
• Draught beer
• Bulk beer
• Distributor-issued beer

For beer:

• Up to 5% ABV → ₹12 per bulk litre
• Above 5% to 8% ABV → ₹20 per bulk litre

for both bottled and draught beer categories.

This directly impacts:

• Recipe planning
• Beer pricing
• Brewery economics
• Product positioning

Additional Excise Duty Structure

Slab-Based Additional Excise Duty

The amendment also introduces additional excise duty structures linked to:

• Declared product pricing
• Alcohol category
• Beverage strength

The rules create slab-based additional excise duty structures for:

• Spirits
• Beer
• Imported products
• Distributor-issued products

For breweries, this means commercial planning becomes increasingly important.

Why Utility Planning Matters in Karnataka Breweries

Brewery Engineering Is Often Underestimated

Many hospitality businesses underestimate brewery engineering requirements.

A properly designed brewery requires:

• Cooling load calculations
• Glycol balancing
• Electrical load planning
• Steam load estimation
• Drainage engineering
• Ventilation planning

Improper utility design often creates:

• Fermentation instability
• Poor beer consistency
• High electricity bills
• Draft beer issues
• Operational downtime

Breweries should evaluate:

• Glycol reserve capacity
• FILO glycol piping design
• VFD-controlled glycol pumps
• Air vent installation
• Vacuum breaker systems

before finalizing brewery engineering.

Common Mistakes in Karnataka Brewery Projects

Oversized Brewhouses

Large systems often increase operational cost without improving profitability.

Weak Glycol Planning

Poor cooling system design creates fermentation instability.

Improper Draft Beer Routing

Long python runs and poor balancing affect beer quality.

Ignoring Future Expansion

Many projects fail to leave reserve utility capacity.

Poor Workflow Design

Hospitality and brewing operations must integrate properly.

Businesses should also review our Common Brewery Design Mistakes That Increase Project Costs article.

Final Thoughts

Karnataka remains one of India’s strongest markets for hospitality breweries and craft beer operations.

The combination of:

• Mature beer demand
• Hospitality integration
• Structured licensing
• Draught beer culture

continues to create strong opportunities for well-planned brewery projects.

However, successful microbrewery operations require much more than obtaining excise permissions.

Long-term success depends on:

• Proper brewery engineering
• Utility planning
• Fermentation control
• Operational discipline
• Beer quality consistency
• Hospitality integration

The new AIB policy also signals Karnataka’s continued move toward more structured alcohol taxation and regulatory standardization.

Need Help Planning a Karnataka Microbrewery?

Six Row Brewing provides consulting support for:

• Brewery planning
• Utility engineering
• Glycol system design
• Capacity planning
• Brewery workflow optimization
• Draft beer system design
• Brewery operations
• Hospitality brewery integration

Whether you're planning a brewpub, hotel brewery, or hospitality-focused craft beer project, our team can help support technically informed brewery decisions.