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No Liquor on May 21 in Karnataka, Industry Opposes Constant hikes in excise duty and license fee

As per draft notification the annual license fee has been increased from ₹27 lakh to ₹54 lakh
For distilleries and warehouses, it has been increased from ₹45 lakh to ₹90 lakh

Distilleries and liquor shops in Karnataka are up in arms against the Karnataka Government which has been raising excise duty and license fees at regular intervals. As a mark of protest, they have called for a strike on May 21 and retailers have decided not to purchase liquor from government depots.

On May 15, yet again, the Karnataka government issued a draft notification to double the license fee on May 15. Organisations such as the Karnataka Wine Merchants Association, the National Restaurant Association of India, and the Karnataka Brewery and Distilleries Association have opposed this move and have given a call to all liquor vends in the state to close on May 21. They said across the State almost 12,000 licensed liquor shops will down the shutters.

According to the draft notification the annual license fee has been increased from ₹27 lakh to ₹54 lakh. For distilleries and warehouses, it has been increased from ₹45 lakh to ₹90 lakh. The new fees will come into effect from July 1.

The associations said the repeated hikes by the government had rendered the business unviable, leading to closure of many liquor shops.

The Congress-I government has been increasing excise, milk prices, flat registration charges etc. as to fund the many freebies it announced during the elections. Excise officials say that the fee was increased this year to make up for the shortfalls of the previous financial year. The revenue target for the financial year 2024-25 was 38,525 crores. But only 35,530 crores could be collected. Retailers said the new license fee hike will hit budget segment sales and small outlets. They said that nearly 40 pubs in Bengaluru closed last year as doing business was becoming difficult.

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.

India and UK sign historic FTA

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Prime Minister, Narendra Modi calls the pact ‘historic milestone’
UK Prime Minister, Keir Starmer believes it would strengthen alliances and reduce trade barriers
Scotch whisky and gin tariff reduced from 150% to 75%
Indian alcobev industry hopes ‘minimum import price’ and non-tariff barriers are addressed
Radico Khaitan to import ₹250 crore worth of Scotch in Fiscal Year 2025-26, expects substantial cost-benefit

After protracted negotiations from January 2022, India and the United Kingdom finally signed the ‘Free Trade Agreement’ on April 6. The Indian Prime Minister, Narendra Modi has termed it as a ‘historic milestone’, while his UK counterpart Sir Keir Starmer said that strengthening alliances and reducing trade barriers with economies around the world is part of their ‘Plan for Change’ to deliver a stronger and more secure economy.

The FTA signing announcement came following a telephonic conversation between Prime Minister Modi and his UK counterpart Starmer. The pact was signed in London by the Indian Commerce Minister, Piyush Goyal and the UK Trade Secretary, Jonathan Reynolds. The FTA covers 90% of tariff lines and includes tariff cuts on Scotch whisky, gin, automotive exports, medical devices, and machinery.

Scotch Whisky Tariff Halved

The Scotch whisky industry has been seeking reduction in tariff and that has been halved from 150% to 75% at entry into force, following to 40% after 10 years.

It must be mentioned here, recently India had reduced the tariff on American whiskey (bourbon) from 150% to 100%. India is likely to see now more of imported whiskies, predominantly Scotch as Indians love the dram.

Automotives down from 100% to 10%

The UK Department for Business and Trade (DBT) said that besides whisky and gin, tariff reductions have also been achieved on products such as medical devices, advanced machinery and lamb. Automotives has had the biggest tariff reduction from 100% to 10%. DBT said that the reduction of tariffs would be worth over 400 million pounds based on 2022 trade statistics and is expected to double to 900 million pounds by 2035.

“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the North-East to whisky distilleries in Scotland,” said Trade Secretary Reynolds.

PM Modi’s Tweet

Prime Minister Modi tweeted “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.”

Both agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages, and deepen people-to-people ties.

The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership. The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries. It will also unlock new potential for the two nations to jointly develop products and services for global markets. This agreement cements the strong foundations of the India-UK Comprehensive Strategic Partnership, and paves the way for a new era of collaboration and prosperity.

The talks between the two nations have been going on since January 2022 and the signing gains importance in the backdrop of the tariff war initiated by the US President Donald Trump. Between 2022 and now, Britain has seen four different Prime Ministers, including the previous PM Rishi Sunak, involved in the negotiations.

Sudden and steep reduction, impacts Indian alcobev sector: Deepak Roy

However, the Confederation of Indian Alcoholic Beverage Companies (CIABC) while welcoming the cut in tariffs said it should have been gradual.

The Chairman of CIABC, Deepak Roy said the reduction from 150 to 75% is ‘sudden and steep’ which should have been gradual as the Indian alcobev sector is going through difficult times, besides operating in a highly regulated market.

“The Indian single malts, the gins and others are doing well, but we needed another couple of more years to make them really competitive in the global market.”

He said CIABC is hoping that non-tariff barriers are addressed in the FTA. “We had proposed a minimum import price of 50 to 75$ per case to ensure that there is no dumping of cheap and unknown products.”

Roy added that it was time for some of the State Governments to withdraw the excise duty concessions given to multinational corporations. “There should not be any difference and there should be a level playing field.”

While stating “We are not against any tariff reduction. The Indian industry is ready to compete with the global best and they are holding their own. Only thing, we do not want unknown cheap brands coming and killing the industry here which is providing substantial revenues to the State governments.”

CIABC hopes ‘Minimum Import Price’, inter-alia, is factored in

The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S.Iyer said, “Though FTA details are still awaited, from what information we have gathered it seems that the Government has not fully heeded to the pleas of the Indian alcoholic beverage industry.

“We have always been asking for a level-playing field for the Indian players. We only hope that the government has included in the FTA the minimum import price (MIP) which will prevent dumping / under invoicing and also the removal of non-tariff barriers to ensure better international market access to Indian alcoholic beverages.

“We fear that if the same template of duty reduction is followed for the trade deals with the EU, the US and other nations which produce spirits and wines, then the Indian Alcobev industry, including the wine sector, could get adversely impacted.”

CIABC has urged the Government of India, as pointed out earlier also to various states such as Maharashtra, Kerala, Odisha, Rajasthan, Madhya Pradesh etc., to review the excise concessions given to imported liquor, both spirits and wines. “The governments should make them equal to that of IMFL / Indian wines. This discrimination should end immediately.”

He added, “The government is looking to touch $1 billion exports from the Indian Alcobev industry by 2030. However, without ensuring proper market access especially to the Western nations, it will be difficult to meet the export target. While the other sectors might be benefitting from the FTA, the Indian Alcobev industry seeks similar benefit. Though Indian whiskies, rum and gins have been winning accolades globally, without removal of non-tariff barriers and granting of market access it will be difficult for the Indian Alcobev sector to meet the export target.”

Radico Khaitan says ‘Win-win’, sees cost-benefit in its imports

The Chief Operating Officer of Radico Khaitan, Amar Sinha while welcoming the FTA has congratulated the Prime Minister, Narendra Modi and the Minister of Commerce, Piyush Goyal for concluding the ‘landmark’ pact. “It was long overdue.”

“India is transforming and we as a country are producing world class spirits and constantly upgrading our quality. To produce this quality of spirit, obviously we need to import spirits for blending which India does so far as vatted malt scotch is concerned from Scotland.”

Radico as a company are the largest importers of vatted malt scotch. This fiscal year 2025-26, Radico plans to import scotch worth ₹250 crores. With this FTA, Radico is going to get substantial benefit on the cost front which will make the company healthier and more profitable. So, we personally think as a company that it’s a great agreement and it will offer great opportunities for Indian companies to continue their premiumisation drive and keep reducing their cost.”

Indian Single Malts should not dilute the premium image

Sinha added “As far as Indian single malts (ISM) are concerned Radico produces ISM which are today acknowledged as one among the top 10 spirits of the world. Rampur ISM is one among top whiskies from India. We have priced our product pretty high and we believe in pricing our product much higher than what competition does. So, we are not weary of the fact what the competition does to its price. We feel that competition if it reduces price, they will be diluting the image of their premium brand, therefore we don’t think they will reduce price. It would be an opportune moment for foreign companies to make some money through this tax reduction.”

It is a very welcome move and a win-win situation for the UK as well as India, he said and added that the demand of India to look into non-tariff barriers is genuine. “We are waiting for the fine print of the FTA, before that it is difficult to comment.”

Three-year maturation period contentious issue: Vinod Giri

The Director General of Brewers Association of India, Vinod Giri who has championed the cause of the spirits industry earlier, said, “We are yet to see what India gets in return and how the non-tariff issues are handled – especially the condition of three-year maturation to qualify as whisky and measures to prevent predatory pricing.

“In terms of impact Scotch makers are expected to improve their margins first by adjusting duty savings in invoice prices and if that happens, market dynamics will remain unchanged in short terms. Companies importing raw material for blending with domestic whiskeys in India will make some savings on cost.

“The most important long-term impact will be on BII (bottled in India) category. As duties start falling, the rationale for that segment will go away.”

About 30% reduction in retail price, avers Ajay Srivastava

Ajay Srivastava, the Founder of Global Trade Research Initiative and who was earlier part of negotiations with Australia said, “it’s a good decision and trade would increase between the two countries across sectors.”

While stating that as details of the FTA were still not available it would ‘difficult to hazard a guess’ on what the minimum import price would be, Srivastava said but added that “it will only be on the higher side, unlike wine which is around 4 dollars. Scotch always sells at a premium.”

Srivastava said the question that needs to be asked is how much would be the retail price be following the duty reduction. Giving a hypothetical scenario, he said if a bottle of Scotch whisky is 100$ and the duty at 150% and average State government duties is 60%, the consumer will be buying at $400. Now with the tariff halved from 150 to 75%, the consumer will pay 275$ which is almost 30% reduction. It is a good deal and people are anyways willing to pay for Scotch.”

On whether the Indian spirits market would be impacted, Srivastava asked “Is any Indian company producing Scotch. Nobody is in the bulk business. The Indian single malt is a niche market and does not compete with Scotch. Yes, Indians love Scotch.” However, he added that the Indian alcohol sector has to further develop and this would help in doing so.

He said the FTA would open the flood gates to Europe seeking reduction in tariff on wines, maybe up to 50%.

ISWAI believes premiumisation will get further boost

The CEO of International Spirits and Wines Association (ISWAI), Sanjit Padhi said, “We anticipate that this will accelerate the ongoing trend of premiumisation within the alcobev sector, positively impacting the exchequer revenues of Indian states. Cheaper prices may also result in premiumisation. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices.”

Pegs on enhanced consumer experience

The Adviser (Tax and Regulatory Affairs) of ISWAI, I.P.Suresh Menon said, “ISWAI and its members welcome the UK-India Free Trade Agreement as a landmark development for the AlcoBev sector. The reduction in tariffs offers significant strategic benefits for both countries. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices. This enhanced choice will elevate the consumer experience and boost growth across related sectors such as tourism and hospitality.

“We anticipate that this will accelerate the ongoing trend of premiumisation within the AlcoBev sector, positively impacting the exchequer revenues of Indian states. We see this agreement as a win-win for all stakeholders in the spirits sector whilst fuelling trade, attracting investment, and fostering the exchange of best practices. It reflects the shared commitment of India and the UK to deepening economic ties and advancing fair, balanced trade.”

Scotch Whisky Association calls its ‘once in a generation deal’

While the Indian alcobev sector is still hoping for a ‘level playing field’, the distilleries in Scotland are more than happy.

The Chief Executive of the Scotch Whisky Association, Mark Kent calling it a “transformational” deal said, “The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch Whisky to the world’s largest whisky market.

“The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry. The deal has the potential to increase Scotch Whisky exports to India by £1bn over the next five years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.

“This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.”

Chivas Brothers CEO terms it ‘game-changer’

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said the FTA is a “welcome boost for Chivas Brothers during an uncertain global economic environment.”

He said, “India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s. The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte (meaning cheers in Irish) to the UK Ministers and officials who steered the deal though long negotiations.”

Chivas Brothers Ltd. which is part of the Pernod Ricard group of companies, exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater. India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume. The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.

Diageo quality and choice will increase across India

Diageo Chief Executive Debra Crew said, “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.

“The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market. Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoﬀ, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.”

Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation. Diageo has 35 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.

Studio Monkey Shoulder Returns to India

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Global music initiative led by broadcaster, DJ Gilles Peterson
Worldwide FM and Monkey Shoulder will spotlight grassroots music scenes in India through a ₹11 Lakh fund

Studio Monkey Shoulder is once again inviting grassroots music communities from India to apply for a £10,000 grant (₹11 Lakh approx.) which will go towards a music project that will spotlight their scene on a global scale.

Last year, Studio Monkey Shoulder supported DJ Delhi Sultanate to transport the BFR Sound System across the country and host Big Bang Festival – a two-day boutique music and culture festival in the remote jungles of Assam. This year, Studio Monkey Shoulder is back to empower the grassroots music communities who are innovating in their scenes – from independent record stores to DIY music venues, online radio stations, and beyond, the spaces where people connect, create and discover music are critical to a thriving music ecosystem.

Monkey Shoulder brand has joined forces with globally acclaimed partners; online radio station, Worldwide FM, as well as its founder, DJ and broadcaster, Gilles Peterson, to award one India community the fund to bring an original project to life this summer. As well as funding, that community will get to tell their story through a series of films and radio broadcasts produced by Worldwide FM.

“The Studio Monkey Shoulder initiative with Worldwide FM and Monkey Shoulder allowed us to think audaciously and go all out on how we’d like a musical and cultural gathering to be. To be able to bring the sound system of a 5-day journey from Delhi to the tribal village of Nanadisa and hold a massive reggae dance in the jungle where in the end everyone let loose and joined in is stuff dreams are made of,” says last year’s India fund recipients, Delhi Sultanate (BFR Soundsystem).

“I’m thrilled to see Studio Monkey Shoulder grow in its second year in partnership with Worldwide FM. It’s been a privilege to work with the communities we supported in 2024, seeing their projects thrive and come to life. I’m excited to uncover more amazing community-driven projects in India and witness the talent that comes with it as the project evolves in year two,” says Gilles Peterson.

ABD Launches Golden Mist French Brandy

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Allied Blenders and Distillers (ABD), India’s 3rd largest spirits company by volume, has launched Golden Mist French Brandy in Karnataka. With this introduction, ABD marks its entry into the fast-growing prestige brandy segment.

Golden Mist combines French craftsmanship with Indian expertise to deliver a smooth and rich blend. As part of the ABD portfolio, Golden Mist strengthens the company’s non-whisky premium offerings, reinforcing its commitment to diversifying and elevating its overall product range.

The prestige brandy segment in Karnataka is growing at 13.1%, significantly outpacing the overall brandy category’s high single-digit growth. Golden Mist enters the market at a time when consumers are actively seeking authentic, high-quality offerings in the mid-premium range.

Golden Mist is crafted for today’s discerning consumers who seek tradition with sophistication and elevated taste experiences. Aged in French oak casks for a crafted feel, the brandy offers a deep amber colour, a smooth and luxurious texture, and a flavour profile that balances grape notes with hints of liquorice, honey, and subtle spice.

The brand also introduces a distinctive packaging innovation with its 180 ml Hippy pack, making it the only brand in its segment to offer this option alongside traditional glass bottles. The Hippy pack, designed in an elegant gold colour, recognises the deep connect with southern culture and enhances Golden Mist’s position as a standout offering in the prestige brandy segment.

Alok Gupta, Managing Director of Allied Blenders and Distillers, said, “Golden Mist represents everything the evolving Indian consumer is asking for; heritage, authenticity, and a superior taste experience, all delivered at an attractive price. We’ve drawn from traditional French brandy-making methods while crafting a product that resonates with Indian palates. This launch is in line with the organisational aim of bolstering our presence in the Prestige and Above segment.”

Golden Mist is available across Karnataka in four different pack sizes. The 750 ml bottle is priced at ₹970, the 375 ml at ₹485, the 180 ml at ₹235 (available in both a glass bottle and the unique Hippy pack), and the 90 ml at ₹120.

ISWAI Commends State Governments for Implementing Progressive Excise Policies

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Move will provide enhanced consumer experience and generate revenue opportunities
Premium-only and Smart Liquor Stores in Karnataka, Telangana, Haryana
Industry seeks De-regulation

The International Spirits and Wines Association of India (ISWAI), voice of the Indian Premium alcoholic beverage industry, has commended State governments for implementing progressive excise policies aimed at modernising retail formats, increasing revenue, and enhancing the overall consumer experience.

From Uttar Pradesh’s composite retail formats to Andhra Pradesh’s privatised model, Rajasthan’s premium mall-based stores, Madhya Pradesh’s single-bottle billing system, Haryana, Telangana, Karnataka, and Odisha’s premium-only retail formats, these progressive policies are redefining how the alcohol retail ecosystem operates across the country.

Welcoming the positive change, Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), said, “The reforms we are witnessing across different states in India, signal a paradigm shift in how the alcobev sector is perceived and managed, and reflects the state governments positive intent and commitment. Progressive excise policies are not only improving compliance and transparency, but also creating the foundation for sustainable, consumer-centric growth.”

UP’s reform-centric excise policy

ISWAI said at the forefront of this transformation is Uttar Pradesh, which has launched a reform-centric excise policy for FY 2025–26 with an ambitious revenue target of ₹55,000 crore, a 10% increase over the previous year. Structural changes like consolidating over 12,000 outlets into approximately 9,000 composite vends are doubling retail accessibility and ensuring broader market coverage. The adoption of a digital e-lottery system for retail licenses has already generated more than ₹2,250 crore, while retail license fees are expected to contribute over ₹4,200 crore, a testament to how digitization and transparency can directly drive state revenues.

Excise reforms are reshaping the alcobev landscape.

Speaking on these forward-looking changes, Sanjit Padhi said, “Uttar Pradesh has been a leader in driving structural reforms that have seen its revenue jump from ₹24,000 crore in FY 18/19 to a target of ₹55,000 crore in FY 25/26, growing at a rate of 13% CAGR. ISWAI members are the largest contributors to the state’s IMFL revenue (55%+), and we believe that the current changes are part of building a sustainable, growth-oriented revenue model that is also consumer-centric. The new outlets and investments in the retail infrastructure will result in a superior consumer experience.”

The reforms also offer greater operational stability for vendors. The state now grants two-year licenses via the e-lottery system, promotes fair competition by capping ownership at two outlets per individual, and fosters a level playing field for stakeholders.

Uttar Pradesh’s focus on premiumisation is reshaping consumer expectations and retail standards. New composite vends are being upgraded into well-lit, aesthetic, and secure outlets, particularly appealing to women consumers and supporting responsible consumption.

“We’re witnessing the rise of a more inclusive, modern alcobev ecosystem. From premium retail formats to safer consumer environments, these changes are aligning with global best practices and unlocking new growth opportunities. This will also provide consumers with high-quality premium brands and genuine products, deterring counterfeit products and encouraging responsible drinking. We hope that other states adopt the best practices of these progressive states to build consumer-centric, growth-oriented, sustainable revenue models,” added Sanjit Padhi.

Innovative Approaches by Andhra Pradesh, Rajasthan, Madhya Pradesh

Some states are following suit with their innovative approaches. Andhra Pradesh, through its privatised retail model, now supports 3,736 liquor vends and has witnessed a ₹1,800 crore surge in revenues and a 37% rise in Scotch sales, indicating strong premiumisation trends. Rajasthan has declared a four-year excise policy – a landmark reform that ensures stability in the sector. Speaking on this, Sanjit Padhi said, “The industry needs business stability as it allows room for building long-term investment plans. Rajasthan has taken this step, which we hope will inspire many other progressive states to evaluate and build this into their future planning process.”

The state of Rajasthan has already seen a 55% increase in IMFL sales since FY 2021, thanks to a retail overhaul that includes premium outlets at airports and shopping malls. States like Madhya Pradesh and Rajasthan are also experiencing significant volume growth—27% and 55% respectively—by embracing composite retail formats that ensure equitable access across urban and rural areas while reducing the prevalence of illicit trade and counterfeit products. Madhya Pradesh’s 2025–26 policy has also introduced features like stock carry-forward and single-bottle billing for premium brands, enhancing traceability and efficiency.

Premium-only and Smart Liquor Stores in other States

Similarly, Uttarakhand is launching Smart Liquor Stores in malls and department outlets, while Haryana, Telangana, Karnataka, and Odisha are promoting premium-only retail formats to meet rising urban demand.

Industry seeks Deregulation

Meanwhile, one of the biggest challenges the industry faces is pricing control. In this context, Sanjit Padhi emphasised the need for deregulation in the IMFL sector. “Market forces should determine pricing, and no company will risk its business by arbitrarily pricing itself out of the market,” he said. ISWAI strongly recommends the removal of pricing controls to liberate and unshackle the industry, encouraging greater investment and more robust contributions to state revenues.

In addition, leading states like Madhya Pradesh, West Bengal and UP have digitized their processes and significantly improved the ease of doing business. This is another area where other states can consider increasing efficiencies, which could lead to better resource utilisation.

As more states look to emulate these successful models, India’s alcobev landscape will continue to evolve into a refined, progressive ecosystem that balances public welfare, economic growth, and consumer preferences, marking a significant milestone for the industry.

ISWAI members largest revenue contributors

Members of ISWAI include global leaders Bacardi, Brown Forman, Campari Group, Diageo-United Spirits, John Distilleries, Moet Hennessy, Pernod Ricard, Suntory Global and William Grant & Sons and have almost 98% of the business produced in India through Indian Made Foreign Liquor (IMFL), Bottled-in-India (BII) products and Indian Single Malts, thereby making the sector strong proponents of the ‘Make in India’ ideology, generating employment and business opportunities, both directly and in ancillary services & industries, across states. ISWAI members are the largest revenue contributors, with over 45% share in volume and more than 55% share in value. With over 95 manufacturing plants in the country, ISWAI members have large investments in India.

Khukri, Nepal’s Award-Winning Iconic Rum, Makes Its Grand Entry into India

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MCKT Beverages Pvt. Ltd. Recently announced the arrival of its internationally acclaimed Khukri Rum in India—an icon of heritage and craftsmanship, set to redefine the premium spirits landscape. Produced by Nepal’s first distillery, and revered as the rum from the top of the world, Khukri carries over 65 years of Himalayan legacy. This celebrated spirit embodies the pinnacle of Nepalese rum-making tradition, offering authentic and timeless flavour profiles that seamlessly blend tradition with innovation. With its entry into India, Khukri Rum not only expands its global footprint, but also reinforces MCKT’s vision to elevate the Indian spirits market by offering superior quality products.

The current variants launching in the Indian market include three premium expressions, each thoughtfully crafted to cater to diverse palates and preferences. Khukri XXX Rum offers a bold, dark blend with earthy undertones and a smooth, long caramel finish. It carries the notes of toffee, vanilla, and prune, with a rich taste of honey complemented by hints of Himalayan herbs and fruits. Khukri Spiced Rum is a tasteful concoction of assorted spices enriched with dry fruits, delivering a warm, subtly sweet taste that ends with a smooth, long finish. Infused with cardamom, ginger, and hints of toffee, its flavour unfolds into woody cinnamon notes enriched with dry fruits. Khukri White Rum presents delicate tropical notes and a creamy character, meticulously charcoal-filtered for exceptional smoothness. It delivers a crisp, clean finish, making it perfect for refined cocktails and refreshing serves.

Each expression in the Khukri collection tells a unique story of Himalayan heritage while upholding the exceptional quality that has earned the brand global acclaim. Khukri Rum has been recognised with prestigious awards, including the Bronze Award at the 2024 International Wine and Spirit Competition, Silver at the 2004 World Selection of Spirits & Liqueurs, and Gold at the International Rum Festival, among many others.

Crafted with passion and precision, Khukri Rum is made from the finest Nepalese sugarcane and distilled with pristine Himalayan waters. It is the only rum aged in Shorea Robusta casks, a unique feature that enhances its depth and character. Traditional open-flame caramelisation adds richness, while high-altitude aging in cool mountain temperatures allows for a slower, more refined maturation. Select batches, some aged for over 45 years, are expertly blended with younger rums to create a spirit of exceptional complexity and smoothness.

For centuries, alcohol has been central to Nepalese culture, deeply rooted in traditions and celebrations. Passed down through generations, the craft of brewing preserves heritage while embracing innovation, elevating Nepal’s spirits industry with world-class craftsmanship. A testament to this legacy, Khukri Rum draws inspiration from the legendary Gurkhas and the precision of the Khukuri knife. Distilled in the pristine Himalayan foothills using pure Himalayan waters, Khukri Rum exemplifies the purity, tradition, and indomitable spirit of Nepal.

Harsh Sinha, Country Director – India, MCKT Beverages Pvt. Ltd. said, “We are thrilled to introduce Khukri Rum to Indian consumers, marking a pivotal moment in our journey. With a rich legacy dating back to 1959, Khukri Rum embodies the finest craftsmanship, heritage, and quality. India’s growing appreciation for premium spirits makes this an opportune time to bring our iconic blend to this dynamic market. This expansion is a strategic step in our commitment to sharing Nepal’s proud distilling tradition with a discerning audience, and we look forward to establishing Khukri as a preferred choice among connoisseurs.”

Now available in Uttar Pradesh, Goa and Maharashtra, Khukri is set to expand further across India. Already established in key global markets like the USA, UK, Japan, Italy, Australia, and the UAE, it continues to build on its rich legacy by offering a premium convivial experience while setting a new benchmark for rum enthusiasts nationwide.

Pernod Ricard’s Resilient Performance

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Q3 fy25 organic net sales decline -3% (-3% reported)
YTD organic net sales decline -4% (-5% reported)

Pernod Ricard has reported a resilient net sales performance in a global macroeconomic and geopolitical environment which remains challenging and very fluid with regards to tariffs. The quarterly sales are impacted by some phasing technicalities that will reverse in Q4: namely in India, the impact of new customs clearance procedures and temporary production interruption in one major state, which is now resolved; in Global Travel Retail, a very high comparison base; and in some markets, the impact of the later Easter.

Pernod Ricard said the balanced and broad-based geographic breadth and its diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment. The company said it is continuously adapting its resources with agility, deploying its operational efficiencies and steering the organisation to fuel future growth and optimising cash generation.

The FY25 Q3 Net Sales was €2,278m an organic decline of -3%, and -3% reported. The FY25 9 months Net Sales was €8,454m, an organic decline of -4% and -5% reported, with unfavourable Foreign Exchange impact of -€145m, and a favourable Group Structure of +€3m. The three quarter volumes grew by +1%, while price/mix effect declined by -5% driven by a strongly negative market mix, it said.

By regions, (Q3/YTD) – Americas +3% / -2%; USA +2% / -5%

Pernod Ricard said that the US Spirits market remains broadly stable. The Q3 Organic Net Sales are ahead of sell-out supported by wholesalers’ orders ahead of tariff announcements. The company’s ongoing focus on execution is illustrated by a steadily improving Sell-Out gap to market, on both volume and value. It reported improving performances on Jameson, Absolut, notably boosted by the success of Absolut Ocean Spray RTD and Kahlua.

It mentioned that Canada had strong growth YTD, driven by Bumbu, Absolut and Jameson and Brazil also showed continued solid momentum in Q3, with growth for Ballantine’s, Absolut and Chivas Regal.

Europe -7% / -3%

In France, the company registered solid growth YTD, driven by Ballantine’s, while in Spain it was soft performance, impacted by the later Easter timing. In Germany there was decline in an ongoing challenged macroeconomic context and lapping a high comparable basis. In Poland the performance was broadly stable YTD.

India +1% / +5%

Pernod Ricard reported dynamic growth YTD with strong underlying market demand and continuing premiumisation trends in Asia. It said there was a softer Q3 sales, impacted by phasing technicalities, due in part to the implementation of new customs clearance procedures affecting sales of imported Spirits, and a temporary production interruption in a major state which is now resolved. It said there has been ongoing strong growth of Jameson, and good performance of Ballantine’s and Royal Salute. Similarly, the company said there has been good growth on Seagram’s whiskies, notably Royal Stag. The strong momentum was expected in Q4, including catch-up from Q3.

China -5% / -22%

The release said that in China the macro context remains challenging. The company registered a sharp decline on Martell, while experiencing very strong ongoing growth on Absolut, Olmeca and Jameson. It said that as expected, Chinese Yuan was very soft and Q3 sales benefitted from cycling a favourable comparison basis. The price increase of mid-single-digit for Martell was taken in February.

In Japan there was strong momentum YTD, with Perrier-Jouet in double-digit growth while Korea continuing weakness in an environment of political disruption.

Global Travel Retail -31% / -17%

The company said that on expected lines, there was sharp decline driven by suspension of the duty-free regime on Cognac in China Travel Retail, compounded with a high comparison basis in Q3. However, there was continued growth in Europe and the Americas, driven by good travellers’ numbers and growth from cruises.

By brands:

The Strategic International Brands showed -4% / -6%, while there was YTD good growth for Jameson, Chivas Regal, Ballantine’s and Absolut, declines on Martell and Royal Salute. The Strategic Local Brands -5% / experienced flat, solid growth for Seagram’s whiskies, Olmeca and Kahlua and Specialty Brands reported -8% / -6%, with double-digit growth of Bumbu, good growth on Skrewball, soft performance for Aberlour.

FY25 Outlook
Pernod Ricard said, “In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in Organic Net Sales while sustaining our Organic Operating Margin, supported by our programme of continuous operational efficiencies. This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today.
A&P will be maintained at c.16% of Net Sales and strict discipline applied to structure costs.
Maximising cash generation remains a core focus for the group. Negative FX impact on PRO for the full year is expected to be broadly similar to H1.”

Piccadily launches Indri Founder’s Reserve single malt whisky, tribute to Kidar Nath Sharma

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Piccadily Agro Industries Ltd, the parent company of India’s fastest-growing single malt whisky brand, Indri, has unveiled its latest creation: Indri Founder’s Reserve 11-Year-Old Single Malt. This new offering is dedicated to the group’s founder, Pt. Kidar Nath Sharma, as a tribute to his legacy.

Aged for 11 years in Ex-Bordeaux Red Wine Casks, this offering is a limited-edition release with only 1,100 bottles available worldwide, of which 550 will be for the Indian market. The company said the release is both a collector’s treasure and a connoisseur’s delight. The limited-edition single malt is priced at ₹35,000 in Gurugram.

The oak barrels so used are the ones that were previously used to age red wine from the Bordeaux region of France and are now repurposed for aging whisky. The whisky will have a 50% alcohol by volume (ABV) for India and 58.5% ABV for international markets.

The whisky is kept at its distillery located in Haryana under extreme climate conditions throughout the year, accelerating the whisky’s maturation, creating an opulent, full-bodied expression that exudes complexity and depth unique to the region’s terroir.

“Indri Founder’s Reserve 11-Year-Old single malt is a symbol of India’s ascension in the world of fine single malt whisky. Aged to perfection and crafted with care, this expression embodies the essence of our founder’s dream: to create world-class Indian single malt whisky with soul, structure, and enduring quality,” said Shalini Sharma, Head of Marketing, Piccadily Agro Industries Limited, in a statement.

“The deep amber liquid offers an aromatic bouquet of dark fruits and warm spices that open into a palate of caramelised nuts, and velvety vanilla, concluding with an indulgent finish of oak and wine-influenced sweetness,” the group said in a statement.

The Founder’s Reserve 11-Year-Old single malt whisky has garnered several prestigious global accolades, including the Gold Award at the 2025 World Whisky Awards in the Single Malts 12 Years & Under category, a spot among the top 15 whiskies in the world at the International Whisky Competition, and a Gold Medal at the New York World Wine & Spirits Competition, among other notable honours.

Carlsberg India profits up by 60%

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Carlsberg India has reported a jump of 60.5% in its profits at ₹323.1 crore in FY’24, according to RoC filing by the company. Carlsberg India total revenue was up 15.2% at ₹8,044.9 crore for the financial year ended March 31, 2024.

The company said, “During the financial year 2023-24, profit amounting to ₹323 crore under the standalone financial statement has been carried forward to ‘Reserve and Surplus’ including other comprehensive income in the balance sheet.”

Carlsberg India Pvt Ltd had reported a total profit of ₹201.3 crore a year before in FY’23, and its revenue from operations was at ₹6,937 crore on a standalone basis. Its “Excise duty expense” in FY’24 was at ₹4,877.8 crore, up 13.4%. This was at ₹4,301.6 crore a year before in FY’23.

“Cash and bank balances increased from ₹9,304 million to ₹11,165 million with strong business performance, better trade working capital and lower capital investment,” it said. Advertising promotional expenses of Carlsberg India were at ₹96.5 crore in FY’24 and total expenses stood at ₹7,628.3 crore, up 13.4%.

The market share however declined to 13.3%, from 14.9% in the fiscal year 2023-24, but Carlsberg India continues to hold the number three position in the Indian beer market. Carlsberg India is the subsidiary of Singapore-based South Asian Breweries Pte Ltd, owned by Danish brewing major Carlsberg.