Pune-based Oi Brewing Company, which specializes in draught beer production under the brand name “Oi,” is taking on a new venture by entering the café industry.
The first café location is set to open in October, located in the upscale Kalyani Nagar district of Pune. The domestic market for draught beer is still in its infancy, with a concentration of players in major cities like Bengaluru, where there are over 50 companies, as well as Delhi-NCR, Pune, and Mumbai. However, the market is currently dominated by small-scale operators.
According to industry publication Statista, the estimated domestic beer market in India is valued at USD 15 billion and is projected to grow annually by 8.2 percent from 2023 to 2027, reaching a volume of 5.81 billion litres. Despite this growth, the draught beer market’s revenue and volume share is currently only about 1 percent.
Statista’s report also predicts that 24 percent of the spending and 16 percent of the volume in the beer segment will come from out-of-home consumption, such as in bars and restaurants.
Subash Cipy, a Chemical Engineer born in Thrissur, Kerala, is the driving force behind Oi beer’s promotion. Cipy initially founded Cipy Polyurethanes in Pune in 1994, with his first client being the Osho Centre in the city. The floor coating company was eventually acquired by industry leader Pidilite Industries in January 2018, initially purchasing a 70 percent stake in an all-cash deal, and later acquiring the remaining stake in 2020 for around INR 200 crore.
Cipy, who continues to serve as the chairman of Cipy Polyurethanes, is in charge of the company that produces and markets floor coatings made from polyurethanes, epoxies, polyurea, and polyaspartic polymers, despite having resigned completely from other positions.
In early 2020, he shifted his focus from the chemicals industry to the beer industry and has since been selling approximately 20,000 liters of beer per month.
“We are launching our first beer cafe in the Kalayni Nagar area of the city by October as we see faster growth in the cafe segment as tap rooms (from where one can buy beer but can’t consume) has its limitations, Cipy told PTI.
According to Cipy, he has invested INR 15 crore to establish three breweries and is presently selling over INR 20,000 liters of beer per month, making Oi one of the largest beer producers in terms of volume.
He said he will invest more than INR 2 crore to take the existing monthly capacity to over 50,000 litres shortly, as “we open more cafes”.
Presently, Oi supplies to 40 hotels/restaurants in Pune, as well as two establishments in Mumbai and one each in Nashik and Nagpur. In addition, Oi provides its products to the cafes located in Brewdog’s leading British draught beer label’s Delhi-NCR and Mumbai tap-rooms/restaurants, along with its own three tap rooms situated in Pune.
“After seeing the response in Pune, we will open more beer cafes in Mumbai, Nashik and Kolhapur on our own by early next year and then test the franchise model later,” Cipy said, adding the cafe investment will be around INR 5 crore.
