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Makers of Godfather beer, Devans Modern Breweries has added 32,000 kl of beer manufacturing capacity by affiliating with a brewery in Bokaro, Jharkhand. The company said in a statement that this has raised its total production capacity to 1,56,600 kl. 

Earlier this year, it had added 10,000 kl of manufacturing capacity through a similar tie-up with Aether Brewery at Namsai in Arunachal Pradesh.

The Jammu-based company said it is seeing a strong demand from the Jharkhand market. “Our brands command very good demand in the Jharkhand market. We had been supplying our beers to this market from our Jammu brewery which had become uneconomical due to the huge freight rates. This production tie up will result in substantial increase in the sale of our brands and strengthen our presence in the state. We expect to close FY23 with a sale of over 8 million cases and cross 12 million cases in FY24," said Prem Dewan, managing director of the firm.

Devans owns two breweries-- one each in Rajasthan and Jammu --as well as one distillery. The Rajasthan brewery located in Kotputli has a production capacity of 75,000 kl. The brewery at Samba, Jammu & Kashmir has a production capacity of 39,600 KL.

The company also launched its Belgian-style strong wheat beer and said it is developing a beer with 10% alcohol by volume (ABV) for the export market and plans to launch a premium single malt whisky in July this year.

India is one of the fastest growing alcoholic beverages markets globally, with an estimated market size of $52.5 billion in 2020 and the market is expected to grow at a CAGR of 6.8% between 2020 and 2023. According to the Ministry of Food Processing Industries, production of alcoholic beverages in the country increased by about 23.8% during the period between 2015-16 and 2018-19.

The alcoholic beverages industry contributes to around 1.5 million jobs in India and generated around USD48.8 billion in sales revenue in 2019, added an ICRIER report titled Developing Principles for Regulation and Pricing of Alcohol Beverages Sector in India, from July 2021.

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