Tag Archives: Indian liquor market

Bombay High Court Directs Maharashtra to Open Portal for Label Registration

The Bombay High Court has directed the Government of Maharashtra to open the excise department portal for online registration of labels for all alcobev companies, a request filed by the advocates representing the International Spirits and Wines Association of India (ISWAI). This is a temporary directive, pending the hearing of the case filed by ISWAI against the State Government. The next hearing of the case is on December 16. ISWAI went to court, seeking, among other issues, a level playing field in the manufacture of ‘Maharashtra Made Liquor’ (MML).
The Court on November 24 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.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.
Only the application for label registration will be accepted once the applicant fits in into the Guideline criteria set by the government. As of now 13 manufacturers are eligible and got the permission to produce MML.

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.
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.
ISWAI went to the court stating that some domestic and international players were producing brands in Maharashtra and selling exclusively in the state and hence should be considered a local player, a criteria to get MML license.
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. ISWAI is represented by Darius Khambatta and Rohan Shah.
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.

So far, the department has approved 13 licenses and many more are pending. Companies like Radico Khaitan; Diageo India; Pernod Ricard India and some more are keen on jumping on to this 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 State government is insisting that the policy changes will fetch in more revenue, encourage local industry and create new jobs. MML category is expected to fetch additional excise revenue of Rs. 3,000 crores.

Tilaknagar Completes Acquisition of Imperial Blue from Pernod Ricard

Tilaknagar Industries Limited (TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has completed the acquisition of the Imperial Blue business division (IB) from Pernod Ricard India (PRI) via a slump sale for a lump-sum consideration of `3,442 crore. The Competition Commission of India had earlier approved the transaction on October 7, 2025.

In addition to this amount, a deferred payment of €28 million will be made after four years from the date of closure of the transaction.

The acquisition has been funded through a mix of internal cash accruals, fresh equity and external debt. A preferential issue of equity shares and warrants to marquee investors and the Promoter Group helped raise `2,093 crore, in addition to securing `2,100 crore through term loans.

Imperial Blue is the third-largest whisky brand in India by volume, selling approximately 22.4 million nine-litre cases for the year-ended March 2025 across India and other markets. With over 25 years of brand heritage, the business reported a revenue of `3,067 crore for the trailing twelve months ending March 2025.

Through this transaction, TI gains access to the “Imperial Blue” brand and allied trademarks, including “Imperial Black” and “Imperial Red” globally. Additionally, TI has entered into a Trademark License Agreement for the use of “Seagram’s” in connection with IB for a defined transition period.

The company has also entered into a long-term supply agreement with Chivas Brothers for Concentrated Alcoholic Beverage (CAB), an essential raw material for manufacturing IB products. To ensure a seamless transition, TI has entered into a Transitional Services and Manufacturing Agreement (TSMA) with PRI.

The manufacturing footprint, as part of the transaction perimeter, includes two owned units located in Punjab and Maharashtra, as well as two exclusive sub-leased units in Telangana and Punjab. Additionally, TI will have access to certain shared units during the TSMA period. As part of the transaction, 116 employees are expected to be transferred from PRI to TI.

Amit Dahanukar, Chairman and Managing Director, TI said, “The acquisition of Imperial Blue significantly scales up our business, representing a decisive step in our ambition to build a truly pan-India presence across all IMFL categories. This acquisition also accelerates our premiumisation journey, enabling us to broaden our offerings across Prestige-and-Above price-points and enhance the value we deliver to consumers.”

Deutsche Bank and Avendus Capital acted as financial advisors for the transaction, with Avendus Capital also serving as the debt financing arranger to TI. Crawford Bayley & Co. and W.S. Kane & Co. acted as legal counsels, while Deloitte served as the finance and tax diligence advisor to TI. Additionally, TI has appointed Ernst & Young to provide Integration Planning & Execution Advisory for the acquisition.

Kerala to Launch Brandy

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.”

Haryana Taxes Beer Heavily

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.