Tag Archives: Indian alcohol industry

Court Allows PLL Holders to Register Labels, Pending Final Order

Government defends ‘Maharashtra Made Liquor’ (MML) policy citing increase in revenue by 17%
On December 16, United Spirits Limited applies for new label license – McDowell’s Century Blended Whisky, under MML category
64% of the total liquor manufactured in 2024–25 is from nine potable liquor license (PLL) holders
MML necessary to revive struggling domestic license holders, government contention
Section 49 of Maharashtra Prohibition Act Invoked, Questions Locus Standi of ISWAI

The Bombay High Court in its hearing on December 23 has allowed all companies to apply and directed the Excise Department to process their application for Maharashtra Made Liquor (MML) license, irrespective of earlier conditions. The Interim direction is subject to the final order.

The Court has posted the next hearing to January 19, 2026.

Justice Revathi Mohite Dere and justice Sandesh Dadasaheb Patil are hearing the case. It must be mentioned here that Justice Dere has been recommended as Chief Justice of Meghalaya starting mid January.

The December 23 directive basically states that all potable liquor licenses (PLL) holders should be allowed to apply for production and sale of MML and the Department must process their applications as if the exclusionary clauses 2 and 3 of the Government Regulations don’t exist (examples being Registered Office should be in Maharashtra; minimum 25% locally resident Directors; no foreign investment etc).

Department Cites Revenue Increase

On December 16, the Government of Maharashtra, had defended in the Court the MML policy, stating that it had led to a nearly 17 per cent increase in excise revenue. The government informed the Court that it had invoked Section 49 of the Maharashtra Prohibition Act, which gives it ‘exclusive privilege on trade in excisable articles’, thus questioning the locus standi of the International Spirits and Wine Association of India (ISWAI) which has filed the petition challenging the MML policy.

The government made the submission in response to the petition of ISWAI which represents several companies including global giants such as Pernod Ricard, Diageo and Bacardi.

The State Government took shelter under Section 49 of the Maharashtra Prohibition Act to argue that trade in excisable articles remains the exclusive privilege of the government, which may be conferred only upon license-holders for consideration.

While acknowledging that one ISWAI member, Pernod Ricard India, holds two potable liquor licenses (PLL), in Nashik and Kolhapur, the government affidavit said that most other members do not operate manufacturing units in Maharashtra. The State questioned ISWAI’s locus standi to challenge the policy, pointing out that ISWAI does not hold any potable liquor license.

“The State government has not imparted this privilege to ISWAI, it does not hold the right to bring an action against the policy decision on behalf of the alleged members of the association.”

Excise Revenues Surge

The Government representatives also made out a case of how excise revenue had surged post introduction of the policy. The excise collections between July and November 2025 rose from ₹9,665.64 crore in 2024–25 to ₹11,299.40 crore in 2025–26, it mentioned.

This growth contrasts with the average 12% rise recorded between April and June 2025, before duty revisions and the rollout of MML. “This shows positive growth after introduction of new policy,” the government said. The government further argued that the policy was aimed at addressing an uneven competitive landscape, promoting local liquor manufacturers and reviving idle capacities in domestic distilleries.

The government said that about 64% of the total liquor manufactured in 2024–25 came from nine potable liquor license (PLL) holders, many linked to ISWAI members or their subsidiaries. The State argued that these figures justified creation of the MML category and a reserved, incentive-based policy was necessary to revive struggling domestic license holders.

ISWAI had challenged the policy as arbitrary and discriminatory, arguing that it violates Article 14 of the Constitution by creating “a preferential class” of PLL holders who alone may manufacture MML, while excluding similarly placed licensees, including its members.

ISWAI argued that this criteria defeats the purported objectives of employment generation, investment promotion, full-capacity utilisation of distilleries and enhancement of excise revenue. It added that the same policy goals could be achieved by allowing all PLL holders to produce MML rather than reserving lower taxes and a price brand for a narrow class of locally structured licensees.

Even while, the Court is hearing the case, United Spirits Limited with unit in Chikhalthana in Aurangabad taluk has applied under MML category a label by name ‘McDowell’s Century Blended Whisky to be sold exclusively in Maharashtra.

Court Directs Department to Open Portal for Label Registration

On November 24, the Court had allowed the State and other stakeholders to go ahead with preparatory steps for execution of the policy decision, but clarified that the same will be without prejudice to the outcome of the case.

The Court had directed the Government representatives to open the portal for any alcobev player from within the state. However, till December 9, the excise department had not facilitated that process, forcing the Court to take notice of that and cautioning the government. A two-judge bench headed by Senior Judge Revathi Mohite Dere asked why the excise department had not followed the court directive and cautioned the government that it would take serious notice of the lapse.

Department Holds Right to Accept or Reject Application

Sources in the Excise Department clarified that the portal is open for anyone to file an application for registering their labels, but it is the department’s prerogative to accept or reject the application.

The ISWAI contention has been that the process for companies to get their labels registered is time-consuming, not less than 45 days, and with the court case going on there would be further delay. This, the ISWAI source mentioned would give undue advantage to the eight players who have been granted licenses to set up MML units. They are already marketing MML in the price band of Rs. 160 and Rs. 205 where brand really does not matter to a particular segment of consumers.

MML Category Doing Well

As of now, reports from the ground indicate that the products launched under the MML category are doing ‘extremely well’ with product quality being good. Some of the MML players or the consultants who are guiding them come with enormous experience in the liquor industry, either having worked in major companies or having bottling plants or ethanol units. Some of them also own retail shops across Maharashtra where they can give good shelf position for their products.

The ISWAI source said that many of the players were ‘commodity players’ and not ‘brand players’ and they would flood the market having a good lead over the established companies. The source acknowledged that the MML players had drafted consultants who have had strong background in the liquor business and are helping the licensees to set up the businesses, thus giving ‘undue advantage’ to them.

In mid-2025, the Maharashtra government introduced policy changes to incentivise local investment. It brought in the MML category, to include grain-based spirits produced exclusively by local manufacturers. The tax rate for MML is 270 per cent with zero foreign investment/ownership. The government believes that this will spur the local industry.

ISWAI then filed a lawsuit against the Maharashtra government, challenging the sharp hike in excise duty on premium affordable liquor brands and also for exclusion of brands of major players such as Diageo India and Pernod Ricard India from the newly-created lower tax category of MML.

The court also asked the government lawyer why the report of the Varsha Nair Committee was not submitted earlier on MML. The report highlights certain salient points to encourage those distilleries which are closed or underutilised in Maharashtra to produce cheap liquor. The report added that this would generate additional revenue to the excise department as well as generate employment provided it is made in Maharashtra for distribution in Maharashtra. It also prescribes certain minimum shareholding pattern for owners.

Eleven Licenses Approved, Several in the Pipeline

So far, the department has approved eleven MML licenses and many more are pending. Companies, both International and nation, are keen on jumping on to this MML bandwagon to produce economy liquor priced between Rs.160 and Rs.205 for the Maharashtra consumers even while their focus is on premium brands. These companies could launch similar products in this price range with some brand extensions and so on.

The Government is represented by Advocate General Milind Sathe with government pleader Neha Bhide and additional government pleaders Shruti Vyas and GR Raghuwanshi. ISWAI is represented by senior advocate Rohan Shah and advocates Darshan Bora, Chirag Shetty, Anchal Mundada, Kanika Birje, Surabhi Prabhudesai, and Vidhi Shah.

Trilok Desai / R.Chandrakanth

Ambrosia

Section 49 in The Maharashtra Prohibition Act

Exclusive privilege of Government to import, etc., intoxicants, etc., and fees levied include rent or consideration for grant of such privilege to person concerned.

Notwithstanding anything contained in this Act, the State Government shall have the exclusive right or privilege of importing, exporting, transporting, manufacturing, bottling, selling, buying, possessing or using any intoxicant, hemp or toddy, and whenever under this Act or any licence, permit, pass, thereunder any fees are levied and collected for any licence, permit, pass, authorisation or other permission given to any person for any such purpose, such fees shall be deemed to include the rent or consideration for the grant of such right or privilege to that person by or on behalf of the State Government.

Telangana Government Silence on Unpaid Dues to Alcobev Companies, Crisis Deepens

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Total outstandings now stands at ₹3800 Crores (including ₹1959.72 Crores pending from May to Aug 2024)
No response from Telangana government to October 25, 2025 letter by ISWAI, CIABC and Brewer’s Association of India
Industry may not be able to supply as per the demand in December 2025, peak festival season

With the Congress-led Telangana government unable to clear huge dues of alcobev companies, the industry is faced with a major crisis. Leading industry associations of the alcoholic beverages industry, namely, the International Spirits and Wines Association of India (ISWAI), the Brewers Association of India (BAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) have cautioned the government that the industry may not be able to supply as per the demand in December 2025, peak festival season, if dues are not cleared.

The stand-off between the alcoholic beverage industry and the Telangana government has turned serious. Companies including United Breweries, Heineken, Diageo, Pernod Ricard and Carlsberg say dues have piled up. Payments are coming in a staggered manner which is not helping the companies. The government’s silence is deepening the crisis. It is hurting production, procurement and supply planning. It is also testing the patience of an industry that contributes almost a third of Telangana’s own revenues.

Shortfall in Payments

In a joint press release, the three industry bodies said that “While the sales of alcoholic beverages and revenue collections shot up in October 2025 riding on festive demand, the payment to suppliers actually fell by almost 50% in the month of Oct’25 compared to what has been released in the past four months!.”

Payment received

July 2025	August 2025	September 2025	October 2025
₹697.82	₹614.62	₹1010.94	₹484.58

The release stated that the heads of the three associations, had repeatedly met senior government officials including the Deputy Chief Minister and the Excise Minister and were given assurances that “the state would commence releasing payments and clear old outstandings, especially for the period May 2024 to August 2024 which has been outstanding for over one year, on priority!

“However, despite the assurances, there has been hardly any progress in settlement of the outstandings. The three associations jointly wish to point out that the payments situation in October 2025 instead turned for the worse!. Whilst ₹484.58 Crore was released till 15 October 2025 which included ₹350 Crores for the period May 1st–May 15th 2024, there has been no payment released since then and as a result the total overdue outstandings now stands at ₹3800 Crores (including ₹1959.72 Crores for the period May to Aug 2024 )!!! It must be noted that the state has a contractual agreement to pay in 45 days which has been breached!!”

The press release signed by Sanjit Padhi, CEO, ISWAI; Anant Iyer, Director-General, CIABC; and Vinod Giri, Director-General, BAI said, “In their discussions and representations, had sought that the state use the application fees for new licenses to be issued in October 2025, amounting to ₹3000 Crores upwards, to pay the industry for supplies made earlier. Unfortunately, this has not happened and the Associations are concerned that the state government has not displayed any intent of paying for supplies and alleviating the financial plight of the alcobev sector in the state in spite of the fact that it is the largest contributor to the State’s tax revenue with contribution of over ₹38000+ Crores per annum to the state exchequer.”

The associations said that the new liquor retail licenses come into play in December 2025 which is during the peak festival season. The combination of stocking up by new licenses and the festive season is expected to increase the demand by retailers to 1.75 times the monthly average.

November 10 Deadline Passes

“However, most companies have pointed out that without immediate payment from the Government, they would not have money to meet this demand. This crisis can only be avoided if the State clears old outstandings by 10th November from the ₹3000+ Crores it has received from the application money. If the above does not happen then it is inevitable that the industry may not be able to supply as per the demand in December 2025.”

The November 10 deadline has passed and there has been no response from the Telangana government.

“The alocbev industry is hopeful that the state recognises the gravity of the situation and responds appropriately, failing which it would have created a crisis of its own making which would impact the entire ecosystem related to the alcobev sector such as loss of employment, closure of ancillary units and transportation and logistics services. Such a development would also have an adverse impact on ‘Brand Telangana’ and may affect future investments in the state not only by the alcobev sector, but also others who deal with supplies to the Government.”

On October 25, 2025, the associations in a joint letter to the Telangana Excise Minister, with copies to the Chief Minister Revanth Reddy; the Deputy Chief Minister; the Chief Secretary; the Excise Secretary and the Excise Commissioner, had urged them to resolve the issue at the earliest.

There has been no response to the October 25 letter. No public statement. No informal guidance. Industry executives say they have not received even an acknowledgment. This is unusual for Telangana, which has typically maintained steady communication with the sector. Companies say the silence makes planning impossible.

Prior to the October letter, the industry representatives had met the Deputy Chief Minister and the Excise Minister. In those meetings, the industry was assured that old dues would be cleared. The associations say those assurances have not translated into action.

Government ₹2,800 crore from the retail licence lottery

In the October 25 representation, the industry asked for three immediate steps. First, release all old payments pending since August 2024. Second, bring current outstanding down to the agreed 45-day cycle. Third, reduce advance excise duty to 1% to ease the working capital load. The associations said October offered a perfect opportunity to clear dues. The government had collected more than ₹2,800 crore from the retail licence lottery. This inflow, they argued, should have gone to settle longstanding arrears.

The letter also pointed to the sector’s importance. The alcoholic beverages industry generates more than ₹2,300 crore a month for Telangana. That is about 32% of the state’s own revenue. The associations warned that disruptions will hurt not only companies, but also the government’s finances. They urged the state to act quickly.

Cash Stress

The industry is now operating with severe cash stress. Payments to suppliers are delayed. Many packaging and raw material vendors have tightened credit. Breweries have slowed production. Distilleries are scaling back bottling runs. Sales teams are drawing up revised dispatch plans with lower allocations to Telangana. Companies say they do not want to reduce supply. But they also cannot carry the burden of unpaid dues for much longer.

Companies including United Breweries, Heineken, Diageo, Pernod Ricard and Carlsberg continue to face substantial pending dues, with industry estimates placing Diageo India’s outstanding payments at around ₹950–1,000 crore and Pernod Ricard’s at ₹1,400–1,500 crore. It may be mentioned that UBL had halted beer supplies to the state earlier this year over accumulated unpaid bills before resuming after discussions, while Pernod Ricard had also paused supplies earlier citing similar issues.

Beer Segment under Severe Strain

The beer segment is showing strain first. Breweries run on shorter cash cycles. They had planned higher output for the October to January season. Those plans are now on hold. Many breweries are shifting inventory to states where payments are on time. IMFL companies face similar challenges. Premium SKUs need expensive packaging and higher marketing spends and those plans are being deferred. Distilleries that operate across multiple states are prioritising markets with predictable cash flows. Telangana is slipping on that list.

Distributors say the pressure will soon hit retailers; allocation cuts will lead to shortages. Retailers depend on a full assortment. Gaps in top-selling brands push consumers to substitutes. Shortages also create price distortions. Retailers say the coming weeks could be volatile if payments do not resume soon.

Banks and rating agencies are also watching the situation. They have begun asking for details on receivables. Some companies are preparing to inform lenders formally about payment delays. This is usually a sign of deepening stress. It also sends a signal to the government that the issue is becoming visible outside the industry.

Industry Weighing its Next Steps

With communication stalled, the industry is weighing its next steps. Some legal advisers have suggested that a writ petition may be an option. Companies prefer to avoid legal escalation. They value the Telangana market and do not want confrontation. But the fact that legal options are being discussed openly shows how serious the crisis has become.

Inside companies, contingency planning is accelerating as CFOs are rationing cash. Procurement teams are warning vendors of possible payment delays. Vendors in turn are cutting credit. This is creating a chain reaction across the supply base. Transporters are asking for shorter credit cycles. Packaging suppliers are demanding partial advances. These pressures are likely to further slow production if dues are not released.

It will be determined soon whether the situation stabilises. If the government releases dues, the supply chain will recover quickly. If silence continues, the industry warns that a controlled slowdown will begin. Allocation cuts will follow. Retail shortages will spread. And Telangana will face a revenue dip driven not by demand conditions, but by administrative inaction.

Note

Telangana Excise Revenue @ ₹34,600 crores for FY24-25

The Telangana Prohibition and Excise Department reported a revenue of ₹34,600 crores for the 2024-25 financial year, marking a slight decline from ₹34,800 crores in 2023-24. Despite this, liquor sales saw a 7% increase compared to the previous year when excluding revenue from new liquor shop license applications.

In 2023-24, the department generated ₹264.50 crores from new liquor shop license applications. When this is excluded, the 2024-25 liquor sales demonstrated a 7% growth. The Excise Department’s tax revenue for the year was ₹7,000 crores. While beer sales decreased by 3%, from 54.8 million cases in 2023-24 to 53.1 million cases in 2024-25, this drop was attributed to a 15-day supply halt by beer companies and an increase in beer prices.

On the other hand, liquor sales showed a 2% increase, with 36.9 million cases sold in 2024-25, up from 36.2 million cases in 2023-24.

CM Admits State Struggling Financially

Telangana Chief Minister Revanth Reddy has admitted in the State Legislature that Telangana is struggling financially, as paying salaries on time has become a challenge. The Congress guarantees model, which helped win elections in Karnataka and Telangana, is now draining the treasury.

Here are some current freebies and schemes offered by the Telangana government:

Cheyutha Scheme: Provides free medical and healthcare up to ₹10 lakh for economically backward

sections, including financial assistance of ₹2500 for women heads of households and free gas cylinders.

Gruha Lakshmi Scheme: Offers financial assistance of ₹ 2000 to women heads of households.

Indiramma Saree Scheme: Distributes free sarees to eligible women from rural and urban areas.

Free Scooty Scheme: Provides electric scooters to women aged above 18 years.

Mahalaxmi Scheme: Offers various financial benefits to improve the standard of living.

Globus Spirits Launches TERAI India Craft Vodka

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World’s First Amethyst-Crystal Filtered Vodka
Launched in Rajasthan, expansion soon in Delhi, Gurgaon, Goa, and Mumbai

Globus Spirits Limited recently announced the launch of TERAI India Craft Vodka, the vodka filtered through amethyst crystals.

Handmade with care and cultivated from grain to glass at the TERAI distillery in Behror, Rajasthan, TERAI India Craft Vodka is crafted using locally sourced rice and bespoke production methods. The distillate undergoes a unique refinement process—filtered through amethyst crystals—creating a vodka which is smooth, playful, and unlike any other in the premium category.

Commenting on the launch, Shekhar Swarup, Joint Managing Director, Globus Spirits, said, “At Globus Spirits, our vision is to create world-class products that blend Indian tradition with global innovation. TERAI India Craft Vodka, with its unique amethyst crystal refinement, is a first for the world and a bold step in our premiumisation journey. We are confident it will resonate strongly with discerning urban consumers who seek authenticity, craftsmanship, and distinction in their spirits.”

TERAI India Craft Vodka has made its debut in Jaipur and Udaipur, Rajasthan, priced at `2,245 for a 750ml bottle. Expansion to Delhi, Gurgaon, Goa, and Mumbai is planned shortly, with availability across leading retail outlets and select premium channels.

With a distilling heritage dating back to 1958, Globus Spirits has been steadily strengthening its premium portfolio. The journey began with TERAI India Dry Gin, which has become a recognised name in the craft gin space, and now continues with the launch of TERAI India Craft Vodka.

Maharashtra Made Liquor (MML) Guidelines Announced to Boost Local Industry

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In a move aimed at reviving underutilised liquor manufacturing units and offering consumers more affordable choices, the Maharashtra Government has formally introduced a new category of alcoholic beverage—Maharashtra Made Liquor (MML). The decision, approved by the State Cabinet in July, has now been formalised through a Government Resolution (GR) amending the Bombay Foreign Liquor Rules, 1963.

The policy positions MML as a distinct sub-category under the Indian Made Foreign Liquor (IMFL) framework. To qualify, the liquor must be grain-based and produced using rectified spirit sourced exclusively within Maharashtra.

One of the biggest attractions for producers and consumers is the reduced excise duty, 270% for MML compared to 450% for IMFL. At an assumed manufacturing cost of ₹400 per litre, IMFL retails at roughly ₹2,200 (including ₹1,800 in excise), while MML is expected to cost around ₹1,480 (with ₹1,080 excise), making it about ₹700 cheaper per litre. The government has set a minimum retail price of ₹148 for a 180 ml bottle of MML, compared to ₹205 for IMFL and ₹80 for country liquor.

Under the new guidelines, MML manufacturers must have their registered head office in Maharashtra; maintain at least 25% state-resident shareholding; avoid producing or marketing MML outside the state; and register their brands within one year. Third-party production is not allowed, though leasing of plant capacity is permitted if the facility remains dedicated to MML production. If sold outside Maharashtra or if rules are violated, the MML status will be revoked, the guidelines state.

Economic Impact

According to reports, Maharashtra currently has 48 licensed IMFL manufacturing units, but only 10 dominate production; many operate at minimal capacity just to retain their licences. The government hopes MML will revive idle plants and generate up to ₹3,000 crore in additional annual revenue. The move is part of wider excise reforms targeting ₹14,000 crore yearly collections through measures including AI-powered monitoring of production and sales; new divisional excise offices; revised duty structures, IMFL at 3× to 4.5× manufacturing cost (capped at ₹260/litre), country liquor up to ₹205 per proof litre; and higher licence fees for FL-2 (retail) and FL-3 (bars) outlets.

In 2024-25, Maharashtra excise revenue stood at ₹25,467.96 crore. Of the six excise regions, Nashik region (Nashik, Nandurbar, Dhule and Jalgaon) earned ₹6,186.82 crore; followed by Chhatrapati Sambhajinagar region (Chhatrapati Sambhajinagar, Beed, Jalna, and Dharashiv) at ₹5,995.07 crore; Pune region (Pune, Ahilyanagar and Sholapur) at ₹5,809.79 crore; Thane region (Mumbai City, Mumbai suburbs, Thane, Palghar and Raigad) at ₹4,513.02 crore; Kolhapur Greater Region (Kolhapur, Satara, Sangli, Ratnagiri and Sindhudurga) at ₹1,265.21 crore; Nagpur region (Nagpur, Wardha, Bhandara, Gondia, Chandrapur and Gadchiroli) at ₹874.43 crore; Nanded region (Parbhani, Latur, Nanded and Hingoli) at ₹592.73 crore; and Amravati region (Amravati, Buldhana, Akola, Washim and Yavatmal) at ₹230.09 crore.

Unlike IMFL’s foreign-style blends, MML will feature simple, traditional flavours such as orange, cumin and herbs. Popular varieties are expected to include Santra, Chandni and Sugandhi. Packaging is expected to be basic, in bottles or sachets and to be labelled “For sale only in Maharashtra”. Distribution will focus on rural and semi-urban markets, though MML will also be available in urban centres. Production is said to be undertaken by state-run units, cooperative sugar factories, and private distilleries.

By creating a regulated, lower-cost option, the government hopes MML will help curb illicit liquor trade and reduce consumption of illicit brews.

Piccadily launches INDRI AGNEYA

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Piccadily Distilleries has launched Indri Agneya, a lightly peated version of their Indri Indian Single Malt Whisky – aiming to bring a bold new dimension to the industry. The name for the malt ‘Agneya‘ is derived from the Sanskrit word meaning ‘belonging to fire’.

Indri Agneya is now available in Haryana at an MSP of Rs. 3800 and will be rolled out across premium retail outlets in India, global travel retail and select international markets in the coming months.

Maturation

The lightly peated version draws its character from maturation in both Sherry and Bourbon casks. According to the Master Blender Surrinder Kumar, the dual-cask aging imparts a layer of depth and complexity, evoking the elemental interplay of fire and wood. And the makers feel that this is the most refined Indian single malts that they’ve made to date.

Agneya is matured in select American oak casks that enhance its bold character adds Kumar. The indigenous 6 row barley is gently kilned over peat smoke, resulting in a spirit that imparts a whisper of smoke that enhances rather than dominates. This balance of peat, sweet malt, toasted oak and spice makes Indri Agneya a compelling choice for those curious about smoky whiskies – albeit the heaviness from peated malts.

Nosing

On the nose, it reveals rich notes of nuttiness and ripe fruit with a smooth, rounded texture, culminating in a gentle lingering smokiness. And it is this this smokiness that sets the Agneya apart from its flagship Indri-Trini. The makers feel that this expression redefines the spectrum of Indian single malts – delivering innovation, balance and sophistication in every sip.

Piccadily feels that Indri Agneya is more than just a product, it represents the makers bold ambition – to elevate Indian single malts on the global stage and continuously redefine the category. It is a reflection of India’s growing reputation for producing exceptional, terroir-driven whiskies that can compete with the best in the world.

The MBA Thesis That Catapulted Indian Single Malt to the Global Stage

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The success story of Indian Single Malt (ISM) whisky in the global market place, pioneered by Bengaluru-based Amrut Distilleries, has been well documented. It is not only an interesting story, but also an inspiring one on how the Jagdales – father-son duo – the late Neelakanta Rao Jagdale and Rakshit Jagdale – hit upon the idea of making a breakthrough in the whisky landscape, dominated by Scotland.

Rakshit Jagdale, in a podcast ‘Expert Talk with Bhavya Desai’ recalls his student days at Newcastle University doing an intense one-year MBA programme. “It was a Sunday morning and I was strolling along Northumberland street, a busy shopping center in New Castle upon Tyne, when my father called up and asked what I was planning to do for my thesis. I said a theoretical project on supply chain management. He said ‘no, no… you should do a practical project’ and suggested ‘why don’t you check whether there is scope to sell Indian single malt whisky in Indian restaurants within Great Britain’ stating that Kingfisher and Cobra beers were quite popular in Indian restaurants there. My father asked me to check out whether there was demand for Indian single malt as an aperitif or a digestive. I said it’s a brilliant idea.”

Miniatures that captured the imagination

Neelakanta Rao Jagdale then sat down with the excise officials in Karnataka and had two cases of miniatures of single malt whisky sent over to New Castle. “It was in June when exams were going on. I went over to the Customs bond and duty paid and cleared one case. The packaging was very rudimentary with a black and white label with simple words ‘Amrut’. We knew our product was exceptionally good. The colour of the whisky was good, dark enough and natural. We don’t add any caramel, it is 100% natural. My father had sent 300 miniatures of 60 ml each in two boxes. It was a live project for the company. I did a lot of my survey in New Castle, Edinburgh in Scotland and in the Midlands. I visited several Indian restaurants and bars in Scotland and the response was amazing. Everybody liked it. Some said it’s a 10-year old whisky, some said its Irish, when I said it was Indian, it was a jaw dropping moment.”

On returning to India, Rakshit presented the project to the family board. “It took us two years to conform to the packaging standards of the European Union and on August 24, 2004, we launched Amrut in Café India in Glasgow. That is how the journey of Indian Single Malt whisky began.”

Making the Grade in Whisky Bible

Not to sit on these laurels, they set off on taking it to the world, creating Amrut Fusion which was next level to the Classic Indian Amrut. “Fusion is a completely different product. It is a combination of peated barley and unpeated barley, the former coming from Scotland and the unpeated from India. It is an 80:20 ratio. My father felt that as the Indian palate is accustomed to little bit of peat with Johnnie Walker Red Label and Black Label, they would like the combination. That was running in his mind.”

Explaining the process, Rakshit mentioned, “Fusion is matured for a longer period, five to five and a half years. The base malt, both peated and unpeated, is matured for four years and then we marry them and mature it again for nine months to one year, which gives it not only depth, but also complexity of flavours. When Jim Murray first savoured it in 2009 and found it unique and said there was no other product in the world that had this kind of combination. He loved Amrut and gave 97 of 100 in his Whisky Bible in 2010 and ranked it as the third finest whisky in the world.”

From humble beginnings in 1948 as a simple bottling company, Amrut is a name to reckon with. It moved on early into distillation and premiumisation and that has paid dividends. “We have reasonably come a long way. We have grown organically and we are happy with progress we have made.”

This is the third generation of the Jagdale family which is running the business, started by Radhakrishna Rao Jagdale in 1948. The fourth generation is getting ready and Rakshit mentions that ‘the time is right to discus with his son and niece to find out if they have any interest, prima facie, in carrying forward the rich legacy of my grandfather and father.”