The Competition Commission of India (CCI) has given the green signal to home-grown alcoholic beverage maker Tilaknagar Industries’ Limited (TIL) proposal to acquire the Imperial Blue whisky business from the Indian arm of French liquor giant Pernod Ricard for Rs 4,150 crore.
In July this year, TIL had announced that it was set to acquire the Imperial Blue whisky business from Pernod Ricard at an enterprise value of 412.6 million Euros (around Rs 4,150 crore).
CCI in a post on X said “Commission approves the acquisition of the business of production, bottling, marketing, and sale of alcoholic and other beverages under the ‘Imperial Brands’ from Pernod Ricard India Pvt Ltd by Tilaknagar Industries Ltd.”
The acquisition will make TIL, which owns brands such as Mansion House Brandy, Courrier Napoleon Brandy, Mansion House Gold Whisky and Blue Lagoon Gin, a leading player in the fast-growing whisky market.
TIL and Pernod Ricard India had entered into a definitive agreement for the transaction related to the sale of the Imperial Blue business division (IB). The consideration includes a deferred payment of 28 million euros (Rs 282 crore as of date) to be paid four years after the date of the closure of the transaction, said a joint statement.
Imperial Blue is the third-largest whisky brand in India by volume. It has reported a revenue of Rs 3,067 crore for the year ended March 2025.
India is the second-largest market for Pernod Ricard. With a consolidated sales revenue of Rs 26,773.22 crore in FY24, Pernod Ricard India is the largest spirit maker in India. TIL had reported a revenue of Rs 1,405 crore and EBITDA of Rs 226 crore for the year ended March 2025. In the September quarter, it had become net debt-free after successfully restructuring its debt.
Allied Blenders & Distillers Ltd (ABD) has commissioned a polyethylene terephthalate (PET) bottle manufacturing facility at its integrated complex in Rangapur in Telangana. With an annual capacity of over 600 million bottles, the new plant is equipped with robotics, automation, recycling, and energy-saving technologies—part of the company’s backward integration strategy to boost self-reliance and cut costs.
The inauguration was led by founder Kishore Rajaram Chhabria, alongside managing director Alok Gupta and executive director Arun Barik. “This facility will significantly strengthen our supply chain while improving profitability through savings in logistics and packaging costs,” said Gupta.
The Rangapur complex is among ABD’s flagship assets, housing a 65-million-litre extra neutral alcohol (ENA) distillery, an Indian Made Foreign Liquor (IMFL) bottling unit, and now, the PET facility. Regulatory approval was recently granted to increase grain spirit production to 615 lakh bulk litres per year.
In addition, the site is witnessing fresh investment with the setup of a single malt whisky plant at an outlay of ₹75 crore. The facility, expected to commence production by the end of this fiscal year, will mark ABD’s entry into the premium single malt segment. Once distilled, the whisky will mature for at least three years before hitting the market—meaning ABD’s first single malt is expected post-2029.
Betting on Premiumisation and Global Demand
Alok Gupta highlighted that single malt whisky is one of the fastest-growing categories globally, and Indian brands are gaining traction with international accolades. “This will be a fascinating opportunity for ABD as Indian single malts have captured the imagination of global consumers.”
The company already exports to 27 countries and plans to expand its footprint to 35 markets. Exports currently contribute 8% of ABD’s topline.
ABD has also recently introduced five luxury brands since January 2024, diversifying beyond its mass-market Officer’s Choice whisky and Zoya premium gin. Historically known for its sub-₹1,000 price segment, ABD is now positioning itself to compete head-on with international premium players.
Capex-Driven Growth Story
ABD is in the midst of a ₹527 crore capital expenditure programme aimed at operational efficiency, premiumisation, and capacity expansion. About 25% of this investment was completed in FY24, with 60% earmarked for FY25 and the remainder in FY26. The spend will also support the company’s plan to expand total distillation capacity from 71 million litres per annum (mlpa) to 121 mlpa by FY27.
According to Gupta, these investments are expected to lift EBITDA margins from 7.5% to 17% and improve return on capital from 18% to above 20% by FY28. ABD has guided for 14–15% annualised growth in net sales over the next three fiscals, projecting its topline to double in just over five years.
Beyond expansion, ABD continues to embed sustainability in operations. The Rangapur site incorporates water recycling, biomass fuel handling, and energy-efficient automation across production. These measures not only reduce environmental impact, but also improve cost structures, complementing the company’s growth-driven investments.
Listed on Indian stock exchanges in July 2024, ABD reported revenues of ₹3,541 crore in FY25. With backward integration through packaging, aggressive capex in distillation, and a strategic push into single malt, the company is betting on premiumisation and global growth to shape its next decade.
“Consumers are upgrading, regulations are becoming more supportive, and Indian spirits are getting their due recognition globally,” Gupta said. “We see this as the perfect time for ABD to expand beyond our traditional base and build a strong premium portfolio for India and the world.”
Debuting in Karnataka, India’s first crafted sparkling cocktail RTD
Misfit by Grover Vineyards has unveiled the perfect fuel to spark a bold new wave of self-expression. Making its debut in Karnataka, Misfit is India’s first crafted sparkling cocktail RTD. Misfit has four striking flavours: classics like Mimosa and Cranberry, and new ones like Kir Royale and Kalimotxo.
Born from the recipes of Grover Vineyards, Misfit cocktail spritzers have caps which open with a twist. Blended with natural fruit flavours, high-quality grapes, and the finest ingredients, Misfit spritzers are designed to delight the senses. Each variant offers a crisp refreshment with a fruit-forward balance.
“We noticed a rush to conform, whether it’s chasing the latest fashion microtrend or using the same trending audio just to ace the algorithm. That’s precisely why we created Misfit: a spritzer that cuts through the conformity and encourages consumers to embrace their individuality. Misfit also makes exploring spritzers genuinely fun, especially when it’s often seen as something intimidating. It’s truly for the trendsetters, the rebels and everyone who confidently makes their own rules,” said Sumit Jaiswal, Chief Operating Officer of Grover Vineyards.
With its debut in Karnataka paving the way for a nationwide rollout, Misfit is set to shake things up further with even more flavours on the horizon.
It features interesting articles like: • UPDA International Summit 2025: Policy, science, and markets drive the agenda • Global alcobev industry market resilience • Tsüipu: From leftover fruit to Nagaland’s favourite wine • Eleven years in the barrel, one landmark release: Indri Founder’s Reserve
As the festive season approaches, the clinking of glasses takes on new meaning— one of celebration, togetherness and the art of gifting. Among the many tokens of appreciation exchanged, luxury spirits are steadily emerging as a preferred choice. More than just a bottle, they embody craftsmanship, heritage and exclusivity, making them ideal for commemorating life’s special moments. Whether it is a limited-edition single malt, a premium gin, or a rare cognac, luxury spirits are no longer just indulgences—they are becoming a language of culture and connection during festive gifting. Speaking about spirits—recently I met Siddhartha Sharma—the Promoter of Piccadilly Distilleries and tasted the Indri-Trini Founder’s Reserve. It represents not only the evolution of Indian whisky-making, but also the country’s ability to stand shoulder-to-shoulder with the world’s finest. The Founder’s Reserve is fast becoming a luxury gifting choice for discerning consumers. It signals a broader trend—Indian spirits are no longer limited to the domestic market; they are redefining global perceptions of quality and authenticity. UPDA also recently concluded its annual conference—with discussions on policy, science and markets as the three drivers of the alcobev landscape in the State. Policy dictates the frameworks within which producers and retailers operate, often determining market accessibility. Science, from advances in fermentation to sustainable packaging, continues to push boundaries of innovation while addressing consumer demand for quality and responsibility. And markets, constantly shifting with consumer preferences and global economic tides, create the rhythm to which the industry must adapt. The interplay of these three factors doesn’t just drive business—it defines the pace of transformation across regions, from emerging markets like India to established hubs in Europe and the Americas.
Globally, the alcobev industry has demonstrated remarkable resilience in the face of uncertainty. From the disruptions of the pandemic to inflationary pressures and supply chain bottlenecks, producers and distributors alike have shown adaptability by leaning on digital platforms, diversifying portfolios, and embracing new consumer trends such as low- and no-alcohol alternatives. Premiumisation remains a strong current, with consumers showing willingness to spend more on fewer, better experiences. We have covered this and more in this issue, so let’s celebrate the festive season and toast to an industry that continues to evolve with grace, strength and resilience.
The Glenwalk, co-founded by Sanjay Dutt, has reported strong sales. The company sold over one million bottles in India between April and August 2025. This represents a five-fold increase from the previous year. The brand is available in 15 Indian states and four international markets.
The Glenwalk’s success has been driven by Cartel Bros’ co-founders Mokksh Sani, Jitin Merani, Rohan Nihalani, and Manish Sani, whose innovative strategies have propelled the brand’s remarkable trajectory. The Glenwalk plans to launch new products and expand into more markets
The company said in a statement that the figure represents a five-fold increase from 0.2 million bottles during the same period last year. The brand is currently available in 15 states including Maharashtra, Haryana, Delhi, Karnataka and Tamil Nadu, and has expanded its presence to four international markets including Canada, Australia, New Zealand and the UAE. It is stocked across more than 10,000 retail and bar outlets and featured in 24 duty-free stores globally. In Meghalaya, where it was recently launched, the brand is priced at ₹1,708 and targets sales of 8,000 cases in the first year
“Witnessing The Glenwalk’s meteoric rise in such a short span has been genuinely inspiring. We’ve achieved in two years what takes many brands decades. Our success is a testament to the team’s relentless effort and the high-quality product we offer, and I’m excited for this next phase of growth,” said Sanjay Dutt, co-founder and brand ambassador. The Glenwalk has received over 10 global whisky awards and four business recognitions. It plans to introduce two new expressions – a 5-Year-Old and a 7-Year-Old and expand into six more Indian states and five overseas markets, including the US, Hong Kong, Nepal, Sri Lanka and Africa.
The Glenwalk is now available in Meghalaya. The brand has expanded across 15 Indian states, including Maharashtra, Haryana, Delhi, Karnataka, and Tamil Nadu. Internationally, it is present in Canada, Australia, New Zealand, and the UAE, available at over 10,000 retail and bar outlets, and featured in over 24 duty-free stores worldwide.
“The Glenwalk’s journey has been phenomenal, and our success is a direct result of our strategic vision and the immense market potential we identified,” said Mokksh Sani, Founder of Living Liquidz, Mansionz, and Co-founder of Cartel Bros. Sanjay Dutt, celebrity brand ambassador and co-founder, added, “Witnessing The Glenwalk’s meteoric rise in such a short span has been genuinely inspiring. Our success is a testament to the team’s relentless effort and the high-quality product we offer.”
Hunter Beer, the flagship brand of SOM Group of Companies, has achieved two milestones this year – celebrating 25 years and registering average yearly sales of 7 crore bottles. Hunter Beer is known for its smooth yet strong taste and unapologetically confident identity, representing India’s new-agenbeer drinker: bold, ambitious, and ready for the next big moment. First launched in 1994 and repackaged in 2016, Hunter operates in the mainstream strong segment (MSS), competing with category leaders. Hunter’s presence spans over multiple states across India, including key markets like Madhya Pradesh, Odisha, Delhi, Karnataka, and Jharkhand. “World Beer Day isn’t just about beer- it’s about the stories we create with every sip,” said Deepak Arora, CEO, SOM Group of Companies. “Hunter Beer has become a part of those stories- from late- night rooftop conversations to weekend getaways with friends. It’s a celebration of bold flavour and fearless living. With annual sales crossing 7 Crore bottles now, Hunter has built a loyal consumer base across metros and rising Tier-II cities. Its success is rooted in uncompromised quality, vibrant branding, and an iconic flavour profile that speaks directly to India’s bold, independent generation.” SOM Group of Companies offers a diverse portfolio of premium beers, spirits, and ready-to-drink products. Headquartered in Bhopal, the company has a strong presence across multiple states and exports to several international markets. Its flagship brands are Mahavat Whisky, Bhimbetka Single Malt, and popular beer brands are Hunter, Woodpecker, Power Cool & Black Fort.
Juniper Bomb, first created in 2020 when a power outage extended a batch of Greater Than’s botanical soak from 10 to nearly 36 hours, the resulting gin was unexpectedly bold, unapologetically juniper-forward, and instantly loved. Originally released as a limited edition, it has found a cult following among purists and has now joined Nao Spirits & Beverages’ permanent lineup. Compared to Greater Than, Juniper Bomb triples the juniper load, delivering a classic London Dry style gin that is electric—like biting straight into a plump Juniper Berry. It’s bold and complex at first, with a finish of ripe lychees. Its gin designed for those who like their spirit loud and proud; best had with lots of ice and tonic, and no additional garnish, what the team calls ‘Make It Naked’. Commenting on the launch, Anand Virmani, Co-Founder & Master Distiller, Nao Spirits, said, “Juniper Bomb wasn’t part of the plan. It was literally born out of a mistake—but the kind you want to make twice. It packs a punch—just like the juniper that defines it. We like to think of it as a gin with the volume turned all the way up.”
Hendrick’s Gin has introduced limited edition—Hendrick’s Oasium, distilled by its Master Distiller, Lesley Gracie, and filled with herbs and vibrant fruits. Hendrick’s Oasium is the latest addition to Hendrick’s Cabinet of Curiosities. It’s designed for gin lovers who like something new and intriguing, with a flavour that’s enjoyed with cucumber and tonic.
With bright citrus and herbal notes, this limited release features desert-inspired botanicals that elevate the crisp, green flavours.
Lesley Gracie, Master Distiller at Hendrick’s said, “It was fascinating to see what plants grow and thrive in an oasis; there are things you wouldn’t expect and some others that you absolutely would. There’s a very distinctive, green, fresh character to Hendrick’s Oasium and a specific bright citrus note from some particularly small desert botanicals. This is rounded off by a lovely depth of flavour and the aromatic oasis herbs tie it all together. I always take inspiration from my surroundings and playing polo on camels was hilarious. Whenever I see the palm trees at Hendrick’s Gin Palace I’m transported back to that day when I fed my camel cucumbers, which it enjoyed immensely. It was so much fun I just had to capture that day in a gin as a way of keeping that memory forever!”
It can be had as Oasium and Tonic, garnished with cool cucumber slices; Oasium Fizz, twist on the Paloma, mixing with pink grapefruit, lime juice, and soda; and Oasium Pegu Club, where citrus botanicals shine alongside orange liqueur, lime, and bitters.
Ally Martin, Hendrick’s Global Brand Ambassador added, “Given Hendrick’s Oasium is inspired by a curious oasis, we wanted to lean into that with the suggested drink serves. First and foremost, as with all our releases, Hendrick’s Oasium works wonderfully in a Gin & Tonic. An alternative long serve is the Hendrick’s Oasium Fizz which is akin to a Paloma. The grapefruit works so well with Hendrick’s Oasium and the bright and zesty notes of the gin, coupled with a little sugar and soda to lengthen, is a winner when gathering friends together.”
“Hendrick’s has always championed the art of the unusual, and that’s what sets us apart in the premium white spirits category. We’ve consistently rewarded consumer curiosity, not just with the gin itself, but through immersive experiences, whimsical storytelling, and unexpected collaborations. In a world that’s constantly changing, the launch of our limited edition, Hendrick’s Oasium reflects our commitment to re-engage audiences in a refreshingly curious way that has helped Hendrick’s remain a beloved choice for those who seek something truly distinctive,” said Sachin Mehta, Managing Director, William Grant & Sons. Hendrick’s Oasium is available in select regions such as Delhi, Gurugram, Mumbai, Goa and Kolkata.
Walk into a liquor store today and you’ll spot it: the distinctive label, the sleek bottle, the growing shelf space. Rockford has carved its own path in the premium whisky segment. Behind it is Abhishek Modi, Executive Director of Modi Illva India Pvt. Ltd., a third-gen entrepreneur with a sharp instinct for what works, what sells, and what sticks. He has got degrees in chemical engineering and business, sure, but what drives him is an eye for detail and a taste for building things that last.
Modi Illva is a 50:50 joint venture between the Umesh Modi Group—whose businesses span pharmaceuticals like Betadine, cosmetics like Revlon, and large-scale distilleries—and Italy’s Illva Saronno, the makers of global staples like Disaronno and Tia Maria, with a presence in over 160 countries. Together, they’ve built a spirits company that continues to expand its footprint across India, with flagship labels Rockford Reserve and Rockford Classic at the forefront.
The company has recently announced an INR 100 crore investment in a dedicated malt distillery at its Modinagar facility, scheduled to go live by December 2025; a move that will support its ambition to produce premium single malts and scale up existing production.
In this conversation with Ambrosia, Modi shares insights on scaling distribution, why Tier 2 cities are key to their strategy, what shapes consumer loyalty in premium segments, and how the company is building for long-term relevance in a competitive alco-bev market.
Modi Illva’s growth in the premium spirits segment has caught the industry’s attention. What factors do you believe are driving this momentum today?
Several elements have contributed to this momentum, both within the company and in the broader market. A key reason is the change in buyer behaviour; particularly among younger, aspirational drinkers, towards quality and authenticity. At Modi Illva, we’ve responded by creating products that match these evolving tastes. Consistency remains central to our production philosophy. We’ve also developed a strong brand narrative rooted in our heritage while incorporating innovation. This blend has helped us connect with audiences, even in areas where brand loyalty is hard to earn. Our long-term investment in regional markets and ongoing relationships with customers has played a crucial role in maintaining this trajectory.
What’s your roadmap for the House of Rockford over the next few years? Can we expect new variants or entries into different whisky sub-segments?
Innovation continues to shape our direction at the House of Rockford. We’re not only working on new expressions but also rethinking how premium whisky can evolve for Indian palates. The coming years will bring considered portfolio additions and renewed trust-building. While Rockford Reserve and Rockford Classic are already well-established, we are examining avenues in craft, blended segments, and age-specific offerings. Collaborations with select distilleries are also being explored for limited releases that appeal to both existing patrons and first-time buyers. All future launches will uphold the standards Rockford is known for.
You’ve built a premium whisky portfolio that resonates with a discerning audience. Which markets or cities are you focussing on currently and why do these matter in your expansion strategy?
Tastes across the country are becoming more sophisticated, and whisky is increasingly tied to individual identity. While major metros such as Mumbai, Delhi, and Bengaluru remain integral, there’s substantial growth in locations like Jaipur, Indore, and Lucknow. These cities are seeing a rise in purchasing power and interest in elevated options. Our attention on Tier 1 and select Tier 2 hubs stems from the pace at which these regions are transforming. Early engagement helps us decode local nuances and develop meaningful connections with new audiences.
Distribution often makes or breaks a brand in the alco-bev space. What is your current approach to building a strong, scalable distribution network and how are you aligning it with consumer demand?
Ensuring availability across the right retail formats, pricing tiers, and channels is essential. We’ve already secured placement in 80% of relevant outlets nationwide. Our framework is structured to be both agile and robust, enabling us to respond to demand patterns swiftly. We rely on trusted partnerships across distribution and retail, built over time. As we continue expanding, our supply chain is being reinforced to maintain visibility without compromising on the aspirational nature of our labels. The system is designed to progress alongside the audiences we serve.
Is there a conscious push towards investing in marketing to strengthen brand recall, especially in newer or emerging markets? How do you measure that impact?
Our campaigns prioritise building real-world resonance rather than chasing volume alone. In newer geographies, we’ve increased our digital presence and local outreach—particularly in Tier 2 and 3 areas—where authenticity and regional relevance shape perception. We measure success through repeat sales, brand stickiness, and customer feedback loops. Meaningful interaction outweighs visibility metrics, and our approach reflects that principle.
We’ve seen an increased interest in Indian single malts, both locally and globally. Is that a category you’re actively exploring or building towards?
The traction around Indian single malts is undeniable, and we’re observing the space closely. Rockford has firmly established its place among premium blends, and we continue to track shifts in craft spirit preferences. Introducing a single malt would require a label that mirrors the quality benchmarks we uphold. For now, we’re expanding our existing portfolio while evaluating future entry points with care.
Production scalability becomes critical when a brand starts accelerating. Are there any backend developments or facility expansions in the pipeline to support your growth goals?
Yes, we are actively upgrading infrastructure to support upcoming requirements. This includes capacity enhancement, improved distillation technology, and streamlined logistics. Environmental responsibility is built into these upgrades. We’ve also fortified our quality assurance systems to deliver consistency, whether the batch size is small or scaled up. These steps are essential as we look to meet rising domestic demand and enter additional global territories.
From a consumer trends perspective, what shifts are you observing in India’s premium alco-bev consumption and how is Modi Illva adapting to meet those expectations?
There’s a marked movement among younger drinkers toward experiences tied to cultural connection, storytelling, and identity. At Modi Illva, we’ve responded with offerings such as Singhasan, a 100% Indian whisky designed for those seeking local relevance. The goal is to create products that reflect this mindset, while maintaining brand integrity and delivering a richer journey for the buyer.
Sustainability is no longer optional. Are there efforts underway at Modi Illva to make production, packaging, or sourcing more environment-conscious?
Yes, ecological responsibility remains a key area of action. We’ve taken steps to reduce our carbon footprint during distillation, introduced recyclable packaging solutions, and engaged with suppliers aligned to our sustainability goals. These initiatives are reviewed regularly to ensure alignment with industry benchmarks. As operations scale, these commitments will remain embedded in our practices.
With AI and digital tools reshaping every sector, do you see them influencing the alco-bev industry? If yes, how are you integrating tech into operations or consumer engagement?
Digital tools and artificial intelligence are helping brands operate with sharper insight and responsiveness. We use these to assess buying patterns, optimise supply logistics, and fine-tune campaign strategies. Real-time input enables us to test new formats and strengthen distribution agility. Whether through customisation, product planning, or service, tech is infused into our everyday decision-making.
You belong to a legacy known for building bold, category-defining ventures. What’s your approach to balancing tradition with modern disruption in your current role?
I work to retain the values that have shaped our foundation, while introducing newer methods suited to today’s context. We combine legacy knowledge with contemporary tools. This mix allows us to evolve while holding on to the consistency and ethics that define us. Progress doesn’t require replacing the past; it calls for building on it thoughtfully.
India’s position in the global alco-bev map is evolving fast. Are you seeing opportunities to export Indian premium spirits? Is that part of Modi Illva’s next phase?
Absolutely. India is gaining attention globally for spirits with character and quality. We believe our brands have the depth to connect with international audiences. Regions like Southeast Asia, Europe, and the Middle East are receptive to well-crafted Indian whisky. We’re actively assessing overseas entry points and see this as a natural extension of our domestic progress.
Looking ahead, what are the biggest milestones or breakthroughs you’re hoping to achieve, either as a business or personally as a leader?
Our target as an organisation is to become India’s third-largest alco-bev player. I would like to shape a label that delivers clarity, originality, and high standards. Rockford has established itself among premium blends, but the journey ahead involves stronger global recognition. This next chapter is an opportunity to contribute to India’s presence in the world of whisky.
Rapid Fire
Blended whisky or single malt: what’s your go-to?
Blended whisky.
One Indian city where you would love to launch an exclusive limited edition?
Keeping state policy in mind…maybe Goa or Gurugram.
Big branding campaign or silent disruptor, what’s more your style?
Definitely silent disruptor. I believe in the product to speak for itself.
Your favourite bar anywhere in the world?
The Connaught in London
If you weren’t building spirits, what would you be doing?
Building a disruptive retail brand in grocery business
What’s one thing people would be surprised to learn about you?
I am quite an open book. What you see is what you get!
The alcobev sector has been a part of two critical Free Trade Agreements (FTAs) – the one India signed with Australia in early 2022, and the more recent Comprehensive Economic and Trade Agreement (CETA) between India and the UK. While the focussed beverage on the Australian one was wine, the UK agreement is focussed on spirits – notably whisky and gin.
Unlike most of the world, the Indian alcobev market is dominated by spirits whose share stands at circa 52%, compared to beer at just under 48%, with wine making up the minuscule remainder. To place it in a comparative context, the UK market is dominated by beer at nearly three-fourths of the market, followed by wine at a healthy 20%, with spirits bringing up the single-digit balance. Even within spirits, India is typically ‘browns’ country with whisky, brandy and rum having a dominant 96% share of all alcoholic spirits, with ‘white’ spirits (e.g., vodka, gin, tequila and flavored spirits) at a distant 4%. On the contrary, the UK is dominated by ‘white’ spirits at 60%, the balance 40% being ‘brown’ spirits (Figures are courtesy IWSR calendar year reports).
While exports of spirits from India to the UK have been traditionally subjected to NIL import duties at the UK end, India imposes an import tariff of 150% on all imports of alcoholic spirits from the UK.
Under the recent India-UK CETA, for whisky and gin, this will now come down to 75% on entry-into-force (EIF) or operational commencement of the CETA, followed by a phased annual reduction over ten years to a resting rate of 40%. For all alcoholic spirits other than whisky and gin, the comparable figures are 110% on EIF, going down over a ten-year period to a resting rate of 75%. However, this concession for all spirits (other than Whisky and Gin) will be subject to a Minimum Import Price (MIP) of USD 5 / USD 6 i.e., only imports valued abovethe threshold will be eligible for the concession – those belowthe threshold will continue to be charged at the current import tariff of 150%.
Whisky and Gin
Other Alcoholic Spirits
150%
Current Import Tariff (BCD + AIDC)
150%
75% ↓ 75%
On Entry into Force (EIF)
110% ↓ 40%
40% ↓ 110%
Phased annual reduction to a resting rate inYear 10 of
75% ↓ 75%
NA
Minimum Import Price (MIP)
USD 5 / USD 6*
*UOM unclear at present BCD – Basic Customs Duty
AIDC – Agricultural Infrastructure and Development Cess
The use of the term ‘Whisky’ in the CETA will make imports of all Whisky from the UK (e.g., those produced in Great Britain, Wales and Northern Ireland) eligible for the tariff reduction in addition to Scotch. The Rules of Origin embedded in the CETA mandate a minimum value addition of 35% within the UK to qualify for the beneficial import tariff into India.
While the intention of the reduction in tariff is to make it applicable to both forms of import – those imported in bottled form (also known as Bottled in Origin or BIO), as also to Bulk Spirit, imported to facilitate local production / bottling and to enhance the blend quality of Made-in-India products, historical HSN classification of the Bulk products may create some issues for imports which will need to be ironed out.
India is the largest importer of Scotch whisky from the UK in volume terms, primarily on account of its humongous import of Bulk Scotch, which constitutes nearly 80% of the country’s overall Scotch import. As mentioned earlier, the Bulk Spirit is used for bottling of Scotch whisky brands in India as also for blending with locally produced brands of IMFL.
While the Indian Cabinet has approved the CETA, the UK Parliament must approve the CETA before it can become effective – and hence the current expectations are that the EIF will be around mid-2026.
While state duties and taxes on Alcoholic Spirits vary state by state, on a national average they are in the range of 66-75% of the street price paid by consumers. That leaves a residual share of 25-34% to cover the CIF price (or cost of goods), local distribution and other expenses, customs tariffs (for imported products), local state levies (e.g., licence fees), and margins for the suppliers, wholesalers and retailers. When placed in this context, one can well visualise that the tariff reduction, though very welcome, is not going to have an earth-shattering impact on street prices. Additionally, given that the EIF is still some time away, various factors can impact the benefits of the tariff reduction, particularly in the current charged geopolitical environment of aggressive physical and trade conflicts – e.g., the INR-GBP forex rate, and the UK-India freight rates, to name only two.
That said, it’s a fresh and welcome reset to a long-standing trade relationship. Cheers to that!
Suresh Menon is a veteran of the Indian alcobev industry, having been a part of the sector for over 35 years – the views expressed herein are personal.
