NEW DELHI, March 16 -- Rising input costs and tighter state policies are reshaping India's beer market, pushing smaller brewers to rethink their strategy. For Simba Beer maker Sona Beverages Pvt Ltd, the answer is clear: move up the value chain.

The company is doubling down on premium products while expanding selectively into large beer-consuming states, betting that higher-margin segments will offer more sustainable growth.

On the back of this shift, the nearly decade-old company expects to close the current financial year with sales of about four million cases, up 26-28% year-on-year, chief operating officer Ishwaraj Singh Bhatia told Mint.

In India's fast-growing but tightly regulated beer market-dominated by three global brewers co...