Category Archives: news

MPs Representing Agriculture and Wine Producers meet Amit Shah and Piyush Goyal

A delegation of Members of Parliament representing farmers and wine producers, led by MP, Supriya Sule met Union Minister of Home and Cooperation, Amit Shah and also Union Minister of Commerce and Industries, Piyush Goyal to discuss issues related to the farming community and wine growers.

The delegation led by MP Supriya Sule comprised Members of Parliament, Dharyasheel Mohite, Bajrang Sonawane, Nitin Patil, Bhaskar Bhagare, Balyamama Mhatre, and Hemant Sawara; the Vice President of Sula Vineyards, Sanjeev Paithankar, and the President of the- All India Wine Producers Association (AIWPA), Jagdish Holkar.

The meetings in Parliament House on August 19 brought to the notice of Amit Shah the issue of agriculture finance and how farmers were impacted by CIBIL ratings due to delayed loan repayments. Lending institutions, they pointed out, were not considerate to the farmers who due to vagaries of nature have not been able to repay interest or loans on time.

In the meeting with the Commerce Minister, the delegation discussed the tariff on wine under the Australia-India Economic Cooperation and Trade Agreement (ECTA) wherein the tariff has been reduced from 150% to 75% on wines (more than US$15 per bottle CIF), to come down to 25% after 10 years. For wines above US$5 and less than US$15, the rates are 100% and after 10 years 50%.

Beer Industry Hit by Cans Shortage

Leave a reply

India’s beer industry is facing a shortage of aluminium cans, thus impacting the sales of canned beer. As per some estimates in the media the short supply could be around 12 to 13 crore and the beer industry is finding it difficult to keep up with the demand.

United Breweries Limited (UBL), a leading beer manufacturer and part of HEINEKEN Company, has confirmed that packaging delays have led to a 1 to 2 percentage point loss in growth of beer over the past six months. The Managing Director and CEO of UBL, Vivek Gupta in a Q1 FY26 earnings call mentioned that cans represent 22% of their overall business but are critical in key markets.

The limited production capacity of India’s three domestic can manufacturing plants, two owned by international giants Poland-based Canpack and US-based Ball Beverage Packaging, have affected the supply chain. All aluminium used for cans is imported, as the specific gauge required is not produced domestically, further straining supply chains. According to a source, Ball Beverage is planning capacity expansion and ‘talks are going on’, similarly Canpack which is the market leader is also investing in capacity. While capacity is one aspect, the industry is facing challenges from the Bureau of Indian Standards (BIS) with regard to certification, as the process is adding to delays, the source added.

Surging Demand, Continue to Import

The situation on the ground is that production capacities have not kept pace with demand. Though India is the second-largest aluminium producer globally, yet its domestic manufacturing alone can’t meet surging demand across industries, from construction to automotive and packaging.

In FY2025, imported aluminium accounted for a staggering 54–56% of India’s total consumption, highlighting deep import dependence.

Canned Beer Revenues Still Healthy

Despite the strained supply chain, revenues from canned beer segment are impressive. Research from WantStats Media indicates that the revenue of the Indian beer market by packaging type in 2024 was approximately $16.25 billion from Cans and $18.45 billion from Bottles. So, in value and volume terms, bottlesled the market, a market which is predominantly a glass-bottle market.

The cans segment is growing fast due to various features such as convenience of carrying, faster cooling, high recycling rate, blocks UV rays etc. The soaring demand, competition from soft drinks market and new BIS (Bureau of Indian Standards) certification rules have been impacting production, causing stock-outs and lost growth, albeit temporarily.

Overall Demand Up

Overall, the demand for beer continues to grow. According to the Brewers Association of India (BAI), sales volume of beer went up to 450 million cases in 2024-25, up from 405 million cases the previous year. The nearly 10% increase in 2024-25 from the previous financial year, highlights the love for the ale by the consumer in India, a country largely known for drinking whisky.

Despite the supply chain hiccups, packaging in India has undergone a massive transformation. It is reported that the aluminium beverage can segment recorded a CAGR of 8.5% between 2019 and 2023, with forecasts suggesting a healthy 7.8% annual growth through 2032. It is indicated that the canned beer format is expected to grow at roughly 7.9% CAGR between 2025 and 2034. Expansions in production facilities are going to help in meeting the rising demand, though the pace of consumption presently is outstripping supply.

AGI Greenpac’s foray into cans

As per Persistence Market Research the Indian aluminium beverage can market (includes soft drinks manufacturers too) will double from $0.4 billion in 2025 to $0.8 billion by 2032, highlighting the immediacy for expanded capacity.

Gauging this, a leading manufacturer of glass and plastic containers, AGI Greenpac has made a bold play of getting into the aluminium can segment too. In July this year, AGI Greenpac announced that it would invest `1,000 crore in aluminium can manufacturing. The company is setting up a manufacturing facility in Uttar Pradesh with plans to produce 1.6 billion aluminium beverage cans annually. The rollout will happen in two phases: the first stage, adding 950 million cans per year, expected to go operational by the third quarter of FY 2027-28 and the full capacity timeline is March 2030.

The Chairman and Managing Director Sandip Somany has said, “This new venture offers strong synergies with our existing glass packaging business. Both categories serve the alcohol and F&B industries, allowing for leveraging existing customer relationships, distribution networks and supply chain efficiencies.”

Craft Beer Segment has a role too

The company has sensed the market which at one time considered canned beers a niche market, but now is quite the in thing as urban consumers seek convenience and sustainable choices. The craft beer market has had a role in this too as brands such as Bira91 and Kingfisher introduced canned offerings (Kingfisher Ultra Witbier in cans launched in Nov 2023) targeting urban millennials and Gen Z consumers in Bengaluru, Delhi, and Mumbai. Pushing sales up were e-commerce platforms as canned beer was unbreakable, lightweight, portable and fully recyclable. For beer companies it allowed them to announce product freshness while having the scope to play with distinctive designs to enhance brand appeal.

Smaller and craft beer brands, like Simba Beer, are particularly hard-hit, as larger brewers dominate the limited supply. Ishwaraj Singh Bhatia, Co-founder & COO of Simba Beer, has noted that cans drive significant off-premise and quick-commerce revenues. To mitigate the shortage, Simba has secured local can suppliers at higher costs and is exploring keg distribution in markets like Maharashtra and Goa, alongside expanding bottle formats to reduce reliance on cans.

Industry experts argue that backward integration, such as investing in new can manufacturing units, is not a viable solution for brewers due to high costs and expertise requirements. While new can plants are expected in the next couple of years, the immediate pressure on supply chains will persist, forcing brands to balance margins with consumer demand. Until capacity expands, the competition for cans is likely to remain intense, leaving smaller players with little bargaining power and pushing them toward more flexible packaging strategies.

BIS Certification, Slows Processes

Another factor that is affecting the supply chain is the introduction of the Bureau of Indian Standards (BIS) certification for aluminium cans which came into effect from April 1, 2025. The new Quality Control Orders (QCOs) require both domestic and imported cans to meet national standards, but the certification process is slow, often requiring inspections of overseas manufacturing plants. Vinod Giri, Director General of the Brewers Association of India (BAI), pointed out that international suppliers like Ball and Canpack face delays in shipping cans to India due to pending certifications.

The BAI has urged that the certification requirement be postponed to April 1, 2026, or exempt imported cans while allowing suppliers with pending applications to continue operations.

This supply constraint comes at a time when demand for canned beer is rising sharply, putting pressure on both brewers and retailers. The shortage is being driven by a mix of factors: global aluminium prices have turned volatile due to energy costs and geopolitical disruptions; India still depends heavily on imported beverage cans, so delays at ports or supply shocks quickly ripple through the market; peak consumption months such as March to June and October to December stretch supplier capacity even further; and, since COVID, a wide range of beverages—from energy drinks to ready-to-drink cocktails—are competing for the same limited can supply.

This supply constraint has emerged at a time when demand for canned beer is on a strong upswing, squeezing both brewers and retailers. Retailers are struggling to maintain inventory consistency, while they are keen on providing what the consumer wants.

This is indeed crucial considering that the annual per capita beer consumption in India is barely 2 litres and has ample room to grow compared to global averages. India’s overall beer market is projected to grow to 802.5 billion by 2033. Within this, the canned beer is set to outpace the broader category, fuelled by lifestyle changes, rising disposable incomes, and the continued spread of online alcohol sales, provided the supply chain falls in place.

Highlights:

BIS Standards for Aluminium Beverage Cans

IS 14407:1996: Specifies technical requirements and testing methods for aluminium beverage cans. It includes criteria such as material composition, coatings, seam integrity, pressure resistance, leakage prevention, and chemical stability. It applies to seamless two-piece drawn and wall-ironed (DWI) cans, impact-extruded, and ironed types, up to 500 ml capacity—intended for beer and carbonated beverages.

Certification under this standard ensures beverage freshness, consumer safety, recyclability, and regulatory compliance.

Certification Process & Timeline

Scheme: Covered under Product Certification Scheme (ISI Mark, Scheme I – Schedule 2) and is mandatory.

Testing Requirements: Rigorous testing is conducted for Material composition; Internal/external coating adherence; Seam and pressure resistance; Leakage prevention; and Impact resistance and chemical stability.

Timeline: Domestic (Indian) manufacturers: about 30 days and foreign manufacturers: about 180 days.

Gadkari unveils Praj BioVerse, Charts India’s Green Energy Future at World Biofuel Day 2025

Leave a reply

The Union Minister for Road Transport and Highways, Nitin Gadkari, set out an ambitious vision for India’s energy and mobility transformation at the launch of Praj BioVerse, an integrated bioeconomy platform, in Pune. The event coincided with the 10^th anniversary of World Biofuel Day celebrations in India and brought together industry leaders, policymakers, and innovators. Ambrosia was invited to this special event. Excerpts:

The gathering saw the presence of Dr. Pramod Chaudhari, Founder-Chairman of Praj Industries; Sanjay Kirloskar, CMD of Kirloskar Brothers; and Vikram Gulati, Country Head of Toyota Kirloskar Motors, among other dignitaries.

100% ethanol-powered generator

Praj BioVerse is positioned as a hub to integrate innovation, industry, research, and policy to accelerate India’s transition to a sustainable, low-carbon economy. The event’s highlight was the unveiling of Kirloskar’s 100% ethanol-powered generator, a milestone in India’s green energy innovation.

Dr. Chaudhari also released his memoir, ‘Horizons Beyond Dreams… As Is What Is’, chronicling his entrepreneurial journey and Praj’s role in advancing circular economy principles.

Farmers as Energy Providers

Gadkari in his address underscored a shift in the agricultural paradigm, from food-only production to fuel and energy generation, highlighting how ethanol blending has already transformed the fortunes of farmers. He cited the surge in corn prices from ₹1,200–1,800 per quintal to ₹2,600–2,800 in Bihar and Uttar Pradesh.

“This is not just an energy policy; it is rural economic empowerment,” Gadkari said, pointing out the dual benefit of reduced fossil fuel imports and increased farmer incomes. “Our farmers will not just grow food, but also fuel for aviation, construction equipment, and vehicles. The day we stop importing fossil fuels will mark a historic transformation.”

The Minister noted that India had overtaken Japan to become the third-largest automobile market in the world. He said the auto sector was also a significant contributor to GST, underlining its economic importance. However, he pointed out that 40% of the country’s air pollution came from automobile emissions, making it essential to adopt cost-effective, import-substituting policies focussed on alternative fuels.

He spoke about isobutanol, biodiesel, green hydrogen, and bamboo ethanol as promising alternatives to conventional fuels. He mentioned that India was on track to become the world’s leading automobile manufacturing hub and revealed that plans were underway to export Mercedes electric vehicles from the country. He envisioned a future in which India evolved from being an energy importer to a net exporter of clean fuels such as biofuels and green hydrogen.

Gadkari urged Indian industry to accelerate the shift to biofuels, emphasising their multiple benefits—reducing crude oil imports, boosting rural incomes, cutting emissions, and transforming agriculture. He added that the ethanol push had helped corn farmers secure better prices for their produce.

Transition to Biofuels

He reiterated that the transition to biofuels was also a key strategy for rural employment generation. He stressed that agriculture must become more economically viable and that the agricultural GDP needed significant growth. He recalled that the idea of producing ethanol from maize had initially faced criticism due to the “food vs fuel” debate, but noted that ethanol production had positively impacted the sector—raising corn MSP, increasing corn acreage, and resolving longstanding payment delays in the sugarcane industry.

Highlighting the future of sustainable energy, Gadkari said that isobutanol was emerging as an alternative to traditional diesel and spoke of ongoing efforts to develop and scale biodiesel as a cleaner substitute for diesel engines. He added that the burning of rice straw had reduced significantly thanks to its use in biofuel production, helping to combat air pollution in several regions.

He further stated that India was on track to become an energy-exporting nation, driven by biofuels, green hydrogen, and other alternative energy sources. He called for greater focus on bamboo cultivation and urged Praj Industries to explore its potential in bioenergy applications.

Referring to flex-fuel technology, he mentioned that he had been using a Toyota flex-fuel vehicle for a year, describing it as both fuel-efficient and environmentally friendly. He expressed confidence that construction equipment would also transition to FFVs in the near future.

Looking ahead, Gadkari envisioned a future in which green energy revenues would empower India’s rural landscape. He said farmers would not only grow food, but also fuel for the aviation sector, construction machinery, and more. He concluded that the day India no longer imports fossil fuels would mark a truly historic achievement.

Praj BioVerse Unique Movement

In his address, Dr. Pramod Chaudhari said that Praj BioVerse was a unique movement bringing together innovation, collaboration, and sustainability within one powerful ecosystem. He explained that BioVerse was a place where ideas were transformed into solutions, where climate action progressed alongside economic growth, and where India’s leadership in the global bioeconomy took centre stage. He added that this aligned perfectly with the vision of Viksit Bharat by fostering inclusive growth and building a circular bioeconomy.

Dr. Chaudhari noted that in the current geopolitical and trade environment, energy security was no longer optional, but a strategic imperative. He stressed that Praj’s bioeconomy model, rooted in local systems and rural self-reliance, was both sustainable and scalable for nations worldwide. He described walking through the BioVerse experience as akin to witnessing the entire Indian bioeconomy value chain in action—from feedstock diversification and intercropping practices to advanced co-product innovations that ensured farmer profitability and steady supply chains.

He highlighted that Kirloskar Oil Engines had tested a B50 blend for the first time in India and that the Automotive Association of India was advancing ethanol–diesel blends while fast-tracking certifications for biofuel technologies meeting the highest standards of performance, safety, and sustainability. According to him, exhibits ranging from ethanol-powered bikes to next-generation engines demonstrated that technology and industry were ready to scale. However, he cautioned that this transformation required more than technology, calling for collective action from innovators, researchers, manufacturers, and policymakers to work together as one.

Vikram Kasbekar, CEO of Hero MotoCorp, said the company was among the first in the country to develop a flex-fuel two-wheeler capable of operating on blends starting from E20. He noted that since 2023, the entire product portfolio had been E20-compliant. According to him, the initiative was not just about technology, but also about supporting the circular economy, benefitting farmers, and reducing dependence on imported fuels. He added that the company had upgraded its technology so that modern ethanol-compatible engines delivered fuel efficiency comparable to traditional petrol engines, and that these vehicles were being well accepted in the market and running successfully.

Vikram Gulati, Country Head and Executive Vice President of Toyota Kirloskar Motor, emphasised that most automotive companies today—both two-wheeler and four-wheeler manufacturers—have introduced flex-fuel vehicles capable of operating on ethanol blends ranging from E20 to E100. He acknowledged that some barriers remained, but noted that these were being addressed with strong policy support from the Government, whether through enabling CAFE norms and taxation structures for OEMs or by creating the right environment for customers and the supply chain to adopt such fuels.

Carbon Trading

Gulati added that in the coming years, economies would increasingly be driven by carbon trading. He said India had a significant opportunity not only to use ethanol domestically and save billions in foreign exchange, but also to earn substantial carbon credits in the global market.

Sanjay Kirloskar, President of MCCIA and CMD of Kirloskar Brothers, said that to achieve the Prime Minister’s vision for 2047, India would require around 1,000 GW of generation capacity. He noted that fossil fuels would need to be phased out and that base-load power would likely come from nuclear energy. He observed that the dangers of fossil fuels were well recognised and that countries worldwide were investing in wind, solar, and nuclear energy together.

Kirloskar pointed out that Europe had implemented carbon border adjustment mechanisms that would affect exports from fossil-fuel-heavy economies, using the funds raised to invest in green technologies. He stressed that Maharashtra was uniquely positioned to lead in nuclear technology, as it housed most of the country’s nuclear establishments, EPC contractors, consultants, and major equipment manufacturers, including Godrej, Larsen & Toubro, and Kirloskar Brothers. According to him, if the state positioned itself strategically, it could drive manufacturing growth, high-tech jobs, and skills development.

Speaking about Kirloskar Brothers’ contributions, he said the company had pioneered titanium pumps for 2G ethanol biofuel production in India. Until now, these pumps had been entirely imported from the US, but he indicated that this would soon change, as every ethanol plant in India currently imported them.

Vishal Soni of Vishwakarma Publications talked about the book, the key takeaways being the clear vision, integrity and the journey of Pramod Chaudhari who is known as the ‘Ethanol Man of India’. The journey echoes how ‘confidence is key to success and preparation is key to confidence’.

Atul Mulay, President of Bioenergy at Praj Industries, while proposing the vote of thanks said the event reflected how collaborative efforts between industries and other research and development organisations helps in strengthening the bioverse ecosystem. Stating that Pune is a powerhouse of industrial technological development, he said that it is key to cleaner, greener and self-reliant future.

Radico Khaitan, Nikhil Kamath Invest in SRK & Aryan Khan’s D’YAVOL Spirits

Leave a reply

First Launch to be Premium Tequila
In 2022, Aryan Khan and Bunty Singh had launched luxury apparel and small-batch spirits
Radico Khaitan acquires 47.5% of D’YAVOL for Rs 40 crore

Radico Khaitan, one of India’s largest alcoholic beverage players, and Zerodha co-founder Nikhil Kamath have joined forces with Bollywood icon Shah Rukh Khan and his son Aryan Khan to scale up D’YAVOL Spirits, a luxury alcohol venture set to debut with a high-end tequila.

Launched in 2022 by Aryan Khan and Bunty Singh as a lifestyle label, D’YAVOL first offered luxury apparel and small-batch spirits, later expanding into fashion with D’YAVOL X. The new spirits-focused entity will operate independently under CEO Leti Blagoeva.

The strategic alliance brings together Radico Khaitan’s manufacturing and distribution scale, D’YAVOL’s premium brand positioning, and Kamath’s consumer market expertise. The company will focus on “bottled-in-origin” international products, targeting affluent consumers in India and overseas.

Radico Khaitan has acquired 47.5% of D’YAVOL for Rs 40 crore, making it the largest shareholder. Apart from the Khans, the other founders of D’YAVOL are their friends Harprit Singh and his wife Leti Blagoeva who is the CEO, the total holding comes to 47.5%. Nikhil Kamath has invested 5% in D’YAVOL Spirits.

“With D’YAVOL Spirits, we are entering a bold new chapter—merging our blending, marketing, and distribution strengths with the charisma of Shah Rukh Khan, the entrepreneurial vision of Aryan Khan, and Nikhil Kamath’s disruptive approach,” said Abhishek Khaitan, MD, Radico Khaitan. “This is a long-term investment that aligns with our growth strategy while opening new avenues in luxury spirits.”

Khaitan added that Radico had no plans to enter tequila, “but when conversations happened with Shah Rukh… and when we saw the product created by them, we decided to partner with them.”

The first product, a premium tequila, is expected to hit the market within months, possibly before the fiscal year ends. Over time, the portfolio will expand to include more internationally sourced, high-end spirits.

Shah Rukh Khan said, “Every great idea needs the right energy behind it. With Abhishek’s experience, Nikhil’s passion, and our creative instinct at D’YAVOL, we are building something bold, relevant, and future-facing.”

India’s alcoholic beverage market is steadily moving upmarket, fueled by rising incomes and evolving tastes. Industry leaders are increasingly investing in design, provenance, and global appeal to capture the growing premium segment.

Radico Khaitan—known for Rampur Indian Single Malt and Magic Moments Vodka—has been expanding globally. The company says D’YAVOL Spirits will run alongside its existing portfolio, aiming squarely at younger, aspirational consumers.

Exclusive: Industry Veteran Suresh Menon dwells on impact on Street Prices of India-UK FTA

Leave a reply

The alcobev sector has been a part of two critical Free Trade Agreements (FTAs) – the one India signed with Australia in early 2022, and the more recent Comprehensive Economic and Trade Agreement (CETA) between India and the UK. While the focussed beverage on the Australian one was wine, the UK agreement is focussed on spirits – notably whisky and gin.

Unlike most of the world, the Indian alcobev market is dominated by spirits whose share stands at circa 52%, compared to beer at just under 48%, with wine making up the minuscule remainder. To place it in a comparative context, the UK market is dominated by beer at nearly three-fourths of the market, followed by wine at a healthy 20%, with spirits bringing up the single-digit balance. Even within spirits, India is typically ‘browns’ country with whisky, brandy and rum having a dominant 96% share of all alcoholic spirits, with ‘white’ spirits (e.g., vodka, gin, tequila and flavored spirits) at a distant 4%. On the contrary, the UK is dominated by ‘white’ spirits at 60%, the balance 40% being ‘brown’ spirits (Figures are courtesy IWSR calendar year reports).

While exports of spirits from India to the UK have been traditionally subjected to NIL import duties at the UK end, India imposes an import tariff of 150% on all imports of alcoholic spirits from the UK.

Under the recent India-UK CETA, for whisky and gin, this will now come down to 75% on entry-into-force (EIF) or operational commencement of the CETA, followed by a phased annual reduction over ten years to a resting rate of 40%. For all alcoholic spirits other than whisky and gin, the comparable figures are 110% on EIF, going down over a ten-year period to a resting rate of 75%. However, this concession for all spirits (other than Whisky and Gin) will be subject to a Minimum Import Price (MIP) of USD 5 / USD 6 i.e., only imports valued abovethe threshold will be eligible for the concession – those belowthe threshold will continue to be charged at the current import tariff of 150%.

Whisky and Gin		Other Alcoholic Spirits
150%	Current Import Tariff (BCD + AIDC)	150%
75% ↓ 75%	On Entry into Force (EIF)	110% ↓ 40%
40% ↓ 110%	Phased annual reduction to a resting rate in Year 10 of	75% ↓ 75%
NA	Minimum Import Price (MIP)	USD 5 / USD 6*

*UOM unclear at present BCD – Basic Customs Duty

AIDC – Agricultural Infrastructure and Development Cess

The use of the term ‘Whisky’ in the CETA will make imports of all Whisky from the UK (e.g., those produced in Great Britain, Wales and Northern Ireland) eligible for the tariff reduction in addition to Scotch. The Rules of Origin embedded in the CETA mandate a minimum value addition of 35% within the UK to qualify for the beneficial import tariff into India.

While the intention of the reduction in tariff is to make it applicable to both forms of import – those imported in bottled form (also known as Bottled in Origin or BIO), as also to Bulk Spirit, imported to facilitate local production / bottling and to enhance the blend quality of Made-in-India products, historical HSN classification of the Bulk products may create some issues for imports which will need to be ironed out.

India is the largest importer of Scotch whisky from the UK in volume terms, primarily on account of its humongous import of Bulk Scotch, which constitutes nearly 80% of the country’s overall Scotch import. As mentioned earlier, the Bulk Spirit is used for bottling of Scotch whisky brands in India as also for blending with locally produced brands of IMFL.

While the Indian Cabinet has approved the CETA, the UK Parliament must approve the CETA before it can become effective – and hence the current expectations are that the EIF will be around mid-2026.

While state duties and taxes on Alcoholic Spirits vary state by state, on a national average they are in the range of 66-75% of the street price paid by consumers. That leaves a residual share of 25-34% to cover the CIF price (or cost of goods), local distribution and other expenses, customs tariffs (for imported products), local state levies (e.g., licence fees), and margins for the suppliers, wholesalers and retailers. When placed in this context, one can well visualise that the tariff reduction, though very welcome, is not going to have an earth-shattering impact on street prices. Additionally, given that the EIF is still some time away, various factors can impact the benefits of the tariff reduction, particularly in the current charged geopolitical environment of aggressive physical and trade conflicts – e.g., the INR-GBP forex rate, and the UK-India freight rates, to name only two.

That said, it’s a fresh and welcome reset to a long-standing trade relationship. Cheers to that!

Suresh Menon is a veteran of the Indian alcobev industry, having been a part of the sector for over 35 years – the views expressed herein are personal.

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

Leave a reply

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.

spiritsEUROPE Wants Zero Reciprocal Tariff for Spirits between EU and US

Leave a reply

spiritsEUROPE has regretted that the EU-US political agreement has, for now, failed to secure the long-overdue restoration of the zero-for-zero framework for spirits. European Union spirits exports to the US are subject to a 15% import tariff.

**Hervé Dumesny, Director General of spiritsEUROPE**

“We welcome the broader principle of an agreement to de-escalate trade tensions and provide greater predictability to businesses,” said Hervé Dumesny, Director General of spiritsEUROPE. “While we thank the European Commission for its ongoing efforts to include spirits in the list of exemptions, the failure thus far to reinstate zero-for-zero for our products is a missed opportunity. The continued application of US tariffs on EU spirits, now at 15%, places our products at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth in our sector on both sides of the Atlantic.”

Originally agreed in 1997, the zero-for-zero arrangement eliminated tariffs on virtually all spirits traded between the EU and the US. It proved to be a powerful engine of economic exchange, boosting transatlantic spirits trade by 450% between 1997 and 2018, spurring cross-investment, and strengthening the cultural and economic bonds between our two sectors. European spirits enjoy strong demand among American consumers, driving substantial growth and job creation both in US retail and hospitality and in the EU regions where these products are made.

“This situation remains unbalanced and unsustainable,” Hervé Dumesny added. “We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits. A truly tariff-free environment is essential to unlock the full potential of our shared industry and safeguard the many jobs it supports, from farmers and distillers to logistics, retail and hospitality across the Atlantic.”

It said that spiritsEUROPE is ready to work constructively with the European Commission, US counterparts, and industry partners to achieve a durable, balanced, and tariff-free solution that reflects the longstanding spirit of EU-US cooperation in the spirits sector.

Tilaknagar Industries ups investment in Samsara-maker Spaceman Spirits Lab

Leave a reply

IMFL manufacturer, Tilaknagar Industries Limited (TI) has made a follow-on investment of ₹10.66 crore in Spaceman Spirits Lab Private Limited (SSL), the maker of premium craft spirits such as Samsara Gin; Sitara Rum and Amara Vodka.

While ₹9.15 crore is part of the previously announced ₹13.15 crore investment envisaged under the September 2024 agreement between TI and SSL, the balance ₹1.51 crore is being invested to acquire shares from some of the early shareholders in SSL.

With this investment, TI’s stake in SSL increases from 12.98% to 21.36% on a fully-diluted basis. The definitive agreements further provide TI with the option to invest additional capital or acquire further stake from other shareholders at a pre-determined valuation methodology, subject to SSL achieving certain pre-agreed milestones.

Ameya Deshpande, President – Strategy and Corporate Development, Tilaknagar Industries said, “Our continued investment in Spaceman Spirits Lab reflects our conviction in the enduring appeal of premium craft spirits in a rapidly evolving market. Their thoughtfully curated portfolio featuring Samsara Gin, Sitara Rum and Amara Vodka demonstrates innovation, quality and craftsmanship. We are excited to deepen our partnership as Spaceman enters a new phase of growth.”

According to TI, the company is subscribing to 1,772 equity shares and 11,752 Compulsorily Convertible Preference Shares for ₹9.15 crore. Further, TI is acquiring 2,236 equity shares from existing SSL shareholders for ₹1.51 crore.

Aditya Aggarwal, Founder and Managing Director, Spaceman Spirits Lab, said, “We are thrilled to deepen our partnership with Tilaknagar Industries as we embark on a bold new chapter. With Tilaknagar’s extensive distribution network and industry leadership, we are excited to take our iconic brands to every corner of India.”

SSL is preparing to diversify its product portfolio with strategic forays into new categories including whisky, heritage liqueurs and tequila. “We are anticipating robust performance in the current fiscal, with projected revenue growth of nearly 70% and volume growth of about 60% in FY26,” Aggarwal added.

Tilaknagar Industries is expected to leverage its distribution network to sell Samsara Gin, Sitara Rum and Amara Vodka in certain states in India and abroad.

Smirnoff Introduces Minty Jamun, Mirchi Mango and Zesty Lime

Leave a reply

Smirnoff is set to shake up India’s flavour landscape with the launch of three bold new variants—Minty Jamun, Mirchi Mango and Zesty Lime—created especially for the evolving tastes of modern India. The exciting new flavours are available in Karnataka, Uttar Pradesh, Haryana and Maharashtra.

Whether it’s a fiery Mirchi Mango margarita, a Minty Jamun spritz with nostalgic flair, or a simple Zesty Lime soda pitcher, this new range unlocks versatile drinking possibilities—whether sipped, or mixed.

“We’re seeing a clear shift in how young Indians approach their favourite spirits—they want global brands to build a stronger local connect that is fresh and premium and yet playful. With Minty Jamun, Mirchi Mango, and Zesty Lime we’re not just offering new flavours, we’re creating moments of discovery that are vibrant, social, and rooted in today’s cultural codes,” said Ruchira Jaitly, CMO, Diageo India.

Each flavour has been thoughtfully developed to reflect the mood and momentum of the modern Indian consumer: Minty Jamun is a throwback with a twist—evoking childhood nostalgia with a fresh, modern take; Mirchi Mango piques curiosity with a sweet-spicy punch inspired by India’s love for heat and tropical fruit; and Zesty Lime brings an easy-going zing that makes it a go-to for group occasions and cocktail starters.

The launch is anchored in the brand’s new India-first campaign “Flavour is a Vibe” — a call to explore taste with freedom, fun, and community.

Diageo Launches ‘The Mangroves Regeneration Pledge’ Featuring Ayushmann Khurrana

Leave a reply

On the occasion of the 10th anniversary of World Mangrove Day, celebrated on July 6, 2025, Diageo India’s Signature Packaged Drinking Water unveiled a compelling new campaign titled “The Mangroves Regeneration Pledge”. Featuring brand ambassador Ayushmann Khurrana, the campaign underscores the urgent need to protect and restore India’s fragile mangrove ecosystems.

At the heart of the initiative is a short film that pays tribute to the resilience of India’s coastal communities and the silent strength of mangroves in battling climate change. Through immersive visuals and Ayushmann’s evocative narration, the film captures the on-ground challenges of conservation, highlighting the role of grassroots action in environmental stewardship.

The film draws attention to Signature’s flagship Mangrove Regeneration Project in Odisha—a three-year, community-led initiative that aims to restore over 62 acres of degraded coastal land. The project involves planting more than 30,000 mangrove saplings and empowering five coastal villages to engage in long-term conservation efforts.

Varun Koorichh, Vice President and Portfolio Head – Marketing, Diageo India, said, “The Mangrove Regeneration Project in Odisha is a powerful expression of what we stand for–community-driven action, sustained commitment, and meaningful environmental progress. With our proposition ‘One With Nature’, we honour the quiet resilience of ecosystems like mangroves and the communities that protect them. This initiative, like our engagement at the Ziro Festival of Music, reinforces our belief in conscious living and environmental responsibility.”

Ayushmann Khurrana, actor and brand ambassador, added, “What drew me to this campaign was its deep connection with real-world impact. This isn’t just a film—it’s a tribute. Mangroves are unsung heroes, silently protecting coastlines, restoring biodiversity, and fighting climate change. Signature Packaged Drinking Water’s approach goes beyond raising awareness—it drives meaningful action. I hope this campaign inspires many to take the pledge and join us in nurturing nature.” Mangroves are among the most efficient carbon sinks on the planet, capable of absorbing up to four times more carbon dioxide than rainforests. Their preservation is critical to climate resilience, biodiversity, and the livelihoods of coastal communities