Telangana taps into microbrewery boom, seeks to expand beer culture beyond Hyderabad

Hyderabad: In a bid to blend taste with tax gains, the Telangana govt is set to lift the lid on microbreweries across the state—breaking away from the long-standing restriction confining them to the Hyderabad Metropolitan Development Authority (HMDA) limits. For the first time, all municipal corporations in the state could soon raise a toast to locally brewed craft beer.

This policy shift, discussed at length in recent cabinet meetings, aims to amend existing excise regulations to enable microbrewery operations in districts beyond Hyderabad. The move aligns with growing demand from entrepreneurs and the govt’s aggressive revenue targets for the excise department.

Though Telangana is predominantly a beer-drinking state, the microbrewery culture never quite took off in Hyderabad the way it did in cities like Bengaluru, Pune, and Delhi. Currently, about 18 microbreweries operate in Hyderabad and Rangareddy, collectively producing nearly 1.8 million bulk litres of beer annually. But that may soon change.

Back in 2015, driven by demand in Greater Hyderabad, the state invited applications to establish microbreweries. In 2016, 50 companies applied and 18 were licensed. However, further expansion stalled due to regulatory inertia. Now, with a revenue target of ₹27,623 crore for the excise department in 2025–26, the state is rebooting its plans—this time with a wider lens.

Officials say there is significant interest in setting up breweries in cities like Warangal, Hanumakonda, Khammam, Karimnagar, Nizamabad, and Nalgonda. The Congress govt is also considering permissions for clubs, elite liquor shops, and star hotels to operate their own in-house microbreweries.

The financial incentives are clear: A new wave of breweries means higher collections from application fees, VAT, and sales taxes. But beyond revenue, the move is also about experience, officials said. Microbreweries offer fresh, flavourful beers—brewed and consumed within hours. With large kitchens, dining spaces, and ample parking, they’re also emerging as urban social hubs.

As Telangana eyes at least 50 new microbreweries, the stage is set for a frothy revival—one that promises both cultural buzz and financial fizz, market analysts said.