The Indian Liquor Industry

SAGAR-

GROUP MEMBERS

SAGAR- PUNEET BRIJENDRA

SHEETAL PALLAVI-

Introduction

• Indian Liquor Industry is divided into 2 broad categories

Indian Made Foreign Liquor (IMFL) Country Made Liquor• Indian Liquor Industry with market value of INR

8500 Crore against INR 60 billions in 1999-00 & is growing at 10-12%

• Shift from country liquor to IMFL because of rising per capita.

Legal Environment• Ban on direct advertising • Excise regulations and Licenses • ‘Regulated’ industry - movement, prices of intermediate

goods (molasses, ethanol) tightly controlled - state governments exert considerable influence.

• Subject to licensing under Industrial  (Development and Regulation) Act, 1956

• Cap on licensed capacity; special license  for expansion• Excessof duties and taxes from bottling to sales stage;

varying from state to state. 

Legitimate business & their surrogate advertisements Brands Surrogate advertisements

McDowell’s malt whisky McDowell’s Soda/water

Radico Khaitan’s 8 pm whisky   Radico Khaitan’s water 

Hayward’s 5000 Beer  Hayward’s water/soda

Derby Special  Derby special soda 

Bacardi Liquor Bacardi Blast CDs & Cassettes

Bagpiper liquor  Bagpipers soda and cassettes

Kingfisher Beer  Kingfisher bottled drinking water 

Royal Challenger whisky Royal Challenger golf accessories & mineral water & cricket team 

White Mischief Liquor White Mischief holidays

Smirnoff Vodka  Smirnoff cassettes & CDs

controversies

• As per cable Tv act 1995 liquor advertisement is banned

• Satellite channels are not under this ban

• Liquor is the main source of revenue for channels

• Liquor co. started their promotion through surrogate advertising

• Companies continued to brand building & recall

Observation from case study

• Guidelines are not clear• Casual approach of the

government• Difference between guidelines

& rules• Uncontrolled satellite channels• Govt should ban to liquor

companies to do CSR activities

well…….Mat piyo sharab is theUse se Hoti hai ZINDIGIKharab is the