A microbrewery that makes its own beer varieties on its premises is all set to come up in 7,000 square feet in Moghalrajapuram in the city. Named Ironhill, the facility with 5,000 litres capacity per month is second of its kind in the State, after the one set up last December in Visakhapatnam, according to company’s Managing Director Teja Chekuri.
Mr. Teja told The Hindu , “We find a lot of potential for the microbrewery as the relevant demography is expanding in Vijayawada owing to developments at the State capital. Over ₹6 crore investment has gone into the facility that makes different kinds of beers besides offering other brands of alcoholic drinks and customised food items.” The microbrewery is up for inauguration on March 9.
Mr. Teja, a Vijayawada-based NRI, was inspired by the microbreweries in the U.S. and planned a chain of outlets across India. The first facility of the company was set up in an upmarket area in Bengaluru.
“We are also evaluating a couple of other locations in the State to come up with our outlets. Kakinada could be our next location, it’s just a matter of time. Though there was demand from a couple of interested franchisees in Guntur, we didn’t find much of traction out there,” he said.
Uncertainty over tax
While the promoters of the company are happy with the expected footfalls, the confusion over likely tax on the business remains a concern as the State government is yet to come up with a GO. According to the MD, each State has a different rate of tax for microbreweries. It is ₹17 per litre of beer produced in Karnataka while it is ₹50 in Telangana.
“We are asked to pay ₹20 per litre in AP as an advance tax. The final tax will be indicated once it is fixed by the government,” Mr. Teja said.
