In a strategic push to boost local liquor production and capture the evolving preferences of Kerala’s spirits market, the state government has commenced construction of a state-owned brandy production facility at Malabar Distilleries Limited, Menonpara, Palakkad. The plant—a fully automated Indian Made Foreign Liquor (IMFL) unit—broke ground on July 7, 2025, and is expected to be operational within six months.

This marks Kerala’s formal entry into premium brandy manufacturing, aimed particularly at serving the northern districts, where brandy consumption dominates. In contrast, rum remains the preferred spirit in southern Kerala—a consumer insight that shaped both the location and product strategy of the initiative.

Scaling Up with Automation

The upcoming facility will house three fully automated production lines, capable of producing 13,500 cases per day. Initially, the plant will run a single shift employing around 40 workers, with plans to scale as demand increases. This is a significant leap from the current manual production of Jawan Deluxe XXX Rum, which yields only 6,000–8,000 cases daily.

Production at the plant will cover the entire value chain—from blending and bottling to capping and packaging—enabling complete in-house control and quality assurance.

A Jawan-Inspired Rollout

Although the brand name of the new brandy is under wraps, officials from Kerala State Beverages Corporation (Bevco)—the state’s liquor monopoly—hinted that the marketing strategy will mirror the successful template used for Jawan Rum, now a trusted name in Kerala’s IMFL landscape.

Kerala’s `20,000 Crore Industry

In FY 2023–24, Kerala reported liquor and beer sales worth ₹19,088.68 crore, a 3% increase from the previous year. Taxes and levies contributed a massive ₹16,609.83 crore to the state exchequer, underscoring liquor’s role as a fiscal pillar.

Kerala’s IMFL market accounts for 90% of liquor revenue, with brandy (35%), beer (33%), and rum (27%) dominating consumption. Premium liquors—priced above ₹1,000 per 750 ml—make up just 4% of the volume, highlighting a strong preference for affordable brown spirits.

Interestingly, only 20% of the liquor consumed is produced within the state, with the rest sourced externally—a gap the new facility aims to narrow.

Kerala also faces limited retail access, with just 0.8 outlets per lakh population. Bevco is working to enhance distribution by launching air-conditioned premium outlets at strategic locations like Kochi Metro stations.

The government is concurrently exploring the production of fruit-based wines and spirits—using pineapple, mango, and banana—to support farmers and diversify beyond grain-based alcohol.

The brandy project is being executed by Kerala Electrical and Allied Engineering Company Ltd., and is part of a broader blueprint approved in June 2022, with administrative sanction in July 2023, to establish five blending and bottling lines at Malabar Distilleries.

Originally set up in 2009 for IMFL production, Malabar Distilleries is now transitioning towards a premium spirits portfolio, aligning with the state’s ambitions to create a self-sustaining, publicly-led liquor ecosystem.

“The government sees liquor production as a sector that supports both employment and state revenue,” said Minister M B Rajesh. “We plan to begin production by February and ensure availability of high-quality liquor through public sector efforts.”