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ISWAI Urges Review of Maharashtra’s Excise Duty Hike on IMFL

Prices of IMFL products expected to increase by up to 65%

In the wake of the current increase in excise duty on Indian Made Foreign Liquor (IMFL) by the Maharastra government, International Spirits and Wines Association of India (ISWAI) has raised strong apprehensions over the government’s recent decision The announcement has triggered concern amongst the stakeholders in the industry with prices of IMFL products expected to increase by up to 65%. For instance, the price of a 180 ml bottle can now be expected to increase by ₹100–130, something that is already doing rounds by consumers on social media. ISWAI and industry experts anticipate this increase having far-reaching economic and social consequences.

Currently the alcobev industry contributes ₹23,290 crore annually to the Maharastra Government, which has seen a robust 11% CAGR in total revenues and a 35% CAGR in the premium segment between FY20 and FY24. The industry stakeholders feel that this might derail this momentum and ISWAI is urging an urgent review of the new policy.

Although the review seems unlikely since the new FTA between UK-India have brought down the imported liquor duty from 150% to 75% initially.

Sanjit Padhi, CEO, ISWAI, said, “This unprecedented hike is likely to push consumers towards cheaper alternatives, including unregulated and potentially unsafe liquor.” Coupled with the high arbitrage with neighbouring states, this raises the risk of market infiltration by illicit products, posing a serious public health threat and undermining consumer safety he added.

This can also have more far etching implications according to ISWAI. Some of which include:

A potential decline in IMFL volumes may reduce demand for grain-neutral spirit (GNS), adversely affecting rural grain-supplying farmers
Likely downward trade for consumers to lower-end or cheaper products
This will impact expected incremental revenue to the government will be marginalised
Workforce rationalization at manufacturing units could result in job losses
Significant disruptions of ancillary sectors like logistics, packaging and bottling
Reduced footfall and revenue in bars and restaurants

There is a heightened risk of unintended consequences, including a surge in the consumption of illicit liquor and cross-border smuggling, particularly from neighbouring states like Goa and Madhya Pradesh, driven by the significant price arbitrage. This infiltration could severely impact both revenue collections and public safety.

ISWAI is also cautioning that the recent price hike may undermine the government’s revenue objectives by fueling non-compliance and expanding the illicit trade network. Rather than generating higher tax collections, the move could result in revenue leakages, as consumers turn to unregulated and untaxed sources of alcohol.

While the government has introduced a new category – Maharashtra Made Liquor (MML) – targeted at the ₹150–205 price range for 180ml, this segment is being vacated by existing IMFL brands, which are moving up to the ₹205+ bracket. However, with MML production expected to take over six months to ramp up, the interim period is likely to create a market vacuum, leading to potential revenue losses for the state.

“A balanced policy will not only ensure steady revenue inflow but also safeguard the interests of stakeholders across the value chain,” adds Sanjit Padhi. The industry, while supportive of reform, advocates a sustainable and revenue-positive model that balances fiscal goals with market realities.

Haryana Taxes Beer Heavily

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The Haryana State Government has increased taxes on beer and from June 12 the prices of beer in the state will go up by 55% for Indian brands and 45% for imported.

Beer brands such as Kingfisher, Carlsberg, Budweiser, and Hoegaarden will see sharp upward price revisions. A 650ml bottle of Kingfisher Ultra, currently retailing at ₹90, will now cost ₹140. Beers such as Corona and Amstel will cost ₹290 up from ₹200 for a pint. Tiger beer is expected to follow suit. A 330 ml beer bottle of Budweiser and Carlsberg will cost ₹120 that used to cost ₹75. Canned beer has been increased to ₹130 (45% for 500 ml can) from ₹90.

The cost of Indian Made Foreign Liquor (IMFL) and Imported Foreign Liquor (IFL) is set to rise by 15-20% under the new excise policy which the government announced on June 2. Absolute Vodka is likely to go up from ₹1,200 to ₹1,500, and Glenlivet from ₹3,200 to ₹3,800.

Haryana Targets ₹14,064 Crore Revenue

Jitender Dudi, deputy excise and taxation commissioner, Gurugram (West), confirmed the increase to a national newspaper. “Yes, there will be a 55% hike on Indian beers and 45% on imported ones. This is primarily to bring parity with neighbouring states and to promote Indian-made beer and liquor over imported alternatives. The excise department is also focussing on optimising revenue through fair pricing while reducing the consumption of foreign-labelled liquor.”

The Haryana government has set a revenue target of ₹14,064 crore for FY 2025–27 under its new excise policy. In the last 2024–25, the department surpassed expectations, collecting ₹12,700 crore against a target of ₹12,650 crore. Officials credited the achievement to improved enforcement, policy stability, and a rise in legal consumption. The 2025–27 excise policy aims to build on this momentum with reforms in liquor quota, duty structure, and stricter compliance enforcement. “With the increased license fee, it will be easier to achieve the targets,” said Dudi.

Tilaknagar Industries PAT jumps 95.7%; EBITDA grows 62.6% in Q4 FY 25

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IMFL manufacturer Tilaknagar Industries Limited (TI) has reported a major spurt in revenue and profit for Q1 2025. The company’s net revenue from operations grew 13.1% from ₹359 crore to ₹406 crore in the corresponding quarter last year. While the profit after tax (PAT), excluding exceptional items, showed a growth of 95.7%, rising to ₹77.35 crore from the ₹39.52 crore reported in the year-ago period.

TI reported a 62.6% growth in EBITDA from ₹48 crore to ₹78 crore in Q4 FY24, and they attribute this to improved operational efficiencies and volume-led growth,. Adjusted for subsidy income, the EBITDA stood at ₹65 crore, a 35.5% Y-o-Y growth.

The EBITDA margin registered a growth of 588 basis points; rising from 13.4% to 19.3% during the period under reference. In Q4 FY 25, the company recorded a volume growth of 20.1% Y-o-Y, signaling a strong return to its growth trajectory. This performance was reinforced by the successful completion of the Andhra Pradesh Route to Market (RTM) transition, which had previously impacted volumes. The company also reported significant market share gains across all key states, further reinforcing its competitive position in the Indian IMFL landscape.

Speaking on the performance, Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries said, “We anticipate sustained momentum, supported by continued market share gains across all major Southern states.”

For FY25, TI reported consolidated net revenue of ₹1,434 crore, up 2.9% Y-o-Y, impacted by a price reduction in Andhra Pradesh and muted volume growth in the first nine months. Despite modest growth in net revenue, EBITDA rose by 37.4% to ₹255 crore while PAT surged 62.9% Y-o-Y to ₹230 crore.

In FY25, TI made further progress in reinforcing its balance sheet, reducing gross debt and achieving a net cash position of ₹107 crore as of March 31, 2025. The Board of Directors has recommended a dividend of ₹1 per equity share for FY25.

During the year, TI strengthened its market presence, maintaining its position as the third-largest player in the Prestige & Above (P&A) IMFL segment in Telangana and Karnataka and the largest IMFL player in Puducherry, reflecting strong brand equity and deep market penetration. Additionally, TI has commenced distribution of the Spaceman Spirits Lab (Spaceman) portfolio, including Samsara Gin, in select markets. This follows the usership agreement signed between Spaceman and TI, marking a strategic step towards expanding TI’s presence in the premium craft spirits segment.

92 Liquor Firms Eye Telangana Market Boom

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Telangana’s alcohol market is set for expansion as 92 liquor companies have applied to launch 604 new brands in the state. The applications were submitted to the Telangana Beverages Corporation Limited (TGBCL), which had issued a call on February 23 inviting both domestic and international suppliers to introduce new variants of Indian Made Foreign Liquor (IMFL) and beer.

Initially, the deadline for submissions was March 15, but it was extended to April 2 by prohibition and excise commissioner C. Hari Kiran, after several companies requested more time to meet updated documentation requirements under the state’s revised liquor policy.

As per reports a total of 604 proposed brands have applied, of which 331 are IMFL variants while 273 are foreign liquor brands. Notably, 47 companies applying for the first time in Telangana accounted for 386 of these applications. The remaining 218 brand proposals came from 45 existing suppliers already operating in the state.

Excise department officials confirmed that every application will undergo detailed scrutiny to ensure compliance with the state government’s updated liquor guidelines. Only those meeting all regulatory norms will receive final approval.

The large number of applications reflects the growing demand and competitive interest in Telangana’s liquor sector. With TGBCL controlling distribution, the State aims to expand the variety of alcoholic beverages available to consumers while maintaining regulatory oversight.

CAG flags Rs. 58-crore loss as Excise department failed to ensure IMFL yield

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The Comptroller and Auditor General (CAG) has detected failure on the part of the Excise department to notify norms for production of Indian Made Foreign Liquor (IMFL) from ENA, which led to the shortfall in the IMFL yield during production and resulted in a revenue loss of Rs. 57.83 crore.

ENA is the primary raw material for making alcoholic beverages such as whisky, vodka, gin, liqueur and alcoholic fruit beverages. It typically contains 95% alcohol by volume and is derived from sources such as sugarcane, molasses and grains.

The CAG report for the year ending March 31, 2020, was tabled in the autumn session of the Assembly.

The report said the records (June 2020) of one distillery (CMJ Breweries Pvt Ltd) and bottling plants of the same firm and four others – North East Bottling Plant, MDH Beverages Bottling Plant, Marwet Bottling Plant and Oaken Gold Bottling Plant – from 2015-16 to 2019-20 were audited to assess the correctness of excise duty collected based on data relating to production and stock.

The audit revealed that four of the five bottling plants utilised a total of Rs. 3.58 crore BL of the ENA during this period. Taking the 1% wastage norm (0.5% for blending and 0.5% for racking) into account, the bottling plants were expected to produce 90,96,457 cases of IMFL, the report said.

“However, four bottling plants disclosed production of 87,17,511 cases of IMFL. This resulted in the short-production of IMFL by 3,78,946 cases. These plants failed to maintain any records of ENA procured and consumed; nor were such reports submitted to the Excise authorities,” the report stated. The audit report observed that the rate of excise duty notified by the state Excise department during the review period was fixed at a uniform rate of Rs.810 per case. It noted that the rate of VAT (40%) fixed by the Taxation department varies from brand to brand ranging from Rs.716 to Rs.787.59 per case.

“The failure of the government to notify norms for production of IMFL from ENA, despite lacunae pointed out in the audit report for the year ended March 31, 2014, resulted in a shortfall of 3,78,946 cases during production, involving loss of revenue to the tune of Rs. 57.83 crore in the form of excise duty (Rs. 30.69 crore) and VAT (Rs. 27.13 crore) over a period of five years under scrutiny,” the CAG report said.

It further said the failure of the state government to notify norms for production of IMFL from ENA and norms for production of ENA from raw materials (grains) resulted in the loss of Rs. 57.83 crore in revenue. Besides, concealment of actual production and sale of IMFL cannot be ruled out, it added.

The CAG stated that the matter was reported to the state government in November 2021. “During the exit meeting in February 2022, the commissioner and secretary of Excise department assured that the norms for production of IMFL from ENA and norms for production of ENA from raw materials will be notified latest by May 2022,” it said.

India Glycols Ltd forays into IMFL

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India Glycols is a leading company that manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals. After becoming a market leader in the Country Liquor segment with the famous brand Bunty and Bubly, the company is now ready to make their foray into the IMFL with their new launches, Amazing Vodka and Single Reserva Whisky. Ambrosia spoke to the Management Team of the brand in an exclusive interview.

With chemicals being the primary cornerstone of India Glycols Ltd business, the company continues to enjoy an undisputed leadership position in certain segments over two decades. And liquor being a by-product of the chemical distillation process, it was only natural to foray into this business.

While country liquor industry was the mainstay of the liquor division with their popular brand Bunty and Bubly selling 1.32 crore cases per month as against the next best-selling brand, which is less than 50%, the company will shortly launch their first 2 products in the Vodka and Semi Premium Whisky category, Amazing Vodka and Single Reserva Whisky.

The Chairmanof India Glycols Limited (IGL), Mr. U S Bhartia felt that IMFL Division should also be nurtured and brought up especially following the success of its country liquor. These sentiments are also echoed by Rupark Sarswat, CEO, India Glycols Ltd ‘the logical step for us when we started to explore consumer market was to look at country liquor and then much more market intensive areas like IMFL. We are looking to engage in the market, continue to take feedback but make sure that the way we build our business is slow, steady and solid.’

With the consumers constantly looking to upgrade and premiumisation being the focus for IGL ‘the vodka will be launched in three variants Amazing Plain Vodka, Amazing Green Apple Vodka and Amazing Orange Vodka for the time being while the Single Reserva Whisky will be launched in the semi-premium category with a unique blend and offering’ said Raju Vaziraney, Advising – President, IMFL for India Glycols Ltd.

Despite the flat growth in the vodka industry, the decision to foray into the vodka market stems from the fact that the consumer is moving towards flavours adds Vaziraney. “You will be happy to know the vodka market is 60% flavours and 40% plain and the consumer is looking to flirt. Flavours are the future of the vodka market and they will drive the growth of vodka.”

Although the precise price point for the Vodka isn’t known yet it is expected to be in the popular category where it will compete with the likes of the most popular brands by market share in the segment. However what’s interesting about the vodka is that it is five time distilled liquid which IGL feels will provide a very smooth and refined taste to the consumer.

When it comes to the Single Reserva Whisky, it will be a unique offering which is expected to be priced under Rs. 1000 depending on the State that you are in. The whisky is blended with Indian Single Malts making it a unique offering. This is a new concept of blending with Indian single malts which was done after doing extensive blend research with the help of the known blender Peter J. Warren.

Currently IGL plans to focus on these two brands and are looking to grow their portfolio stepwise following the success of these brands. ‘We are not going to take any shortcuts to success, put more money, gain volume and build stocks. We want the consumer to be delighted’ adds Vaziraney.

The IMFL brands are manufactured at the company’s Gorakhpur plant. S.K. Shukla, Head of Operations & Business Manager said that, “I have been at the Gorakhpur plant from where we started our IMFL journey since last year May 2020. Besides that global pandemic till date the achievement has been excellent and we hope that this new product Single Reserva Whisky and Amazing Vodka will be great success in the future with the help of Ambrosia’s support.”

B. P.Singhal, Procurement and Projects engineering, IGL adds that we have selected best of the packaging material, bottle design, which can create a stir in the market, mainly for the Vodka. We are looking to target the youth because vodka is typically consumed by the youth. Keeping these factors in mind we have selected the bottle and packaging for both the products.

With the overall market for Vodka estimated to be about 6 million cases, IGL is looking to grab 15% market share in the vodka segment. A success that T P Sharma, Sales Head(HOD), IGL is confident in replicating following their Bunty Vodka Green Apple Flavour Tetra Pack launch in UP, which has already cornered a market share of 42% in six months.

Both the products will be rolled out in the UP and Uttarakhand markets first with Delhi and few other States as the next options in four-five months time. By the festive period IGL is looking to have their products in more States. Both Amazing Vodka and Single Reserva Whisky will be sold via the on-trade channels with IGL looking at ATL and digital activities to promote them.

Shriharsha Bandaluppi, EA (Executive Assistant) to CMD and General Manager Strategy, said, “we are coming up full throttle by using the social media channels like Facebook, Instagram. We are also identifying the key influencers, all sorts of new age trends etc. specially strengthening the brand position with shoots, signage, posts etc.”