New Delhi, April 26 -- Walk into a liquor store in Delhi this summer and you're more likely to spot Barahsinghe, Druk or Le Chilldoz than a chilled Kingfisher or Budweiser. Several well-known national and global beer brands have all but vanished from the city's shelves. In their place, lesser-known names-some locally made, others imported from Nepal and Bhutan-are rapidly gaining ground.

This quiet transformation is puzzling consumers, squeezing out long-time market leaders, and sparking concern across India's beer industry. "Most of the city now has lesser-known brands. Cheaper beer from Bhutan and Nepal is also entering the market, further crowding out familiar names," said Vinod Giri, director general of the Brewers Association of Ind...