The Telangana state government wants all liquor in the market to be made in Telangana. To push its revenue up by another Rs 2,000 crore per annum through excise sales, the government is working on multiple ideas to attract distilleries, besides increasing the alcohol consumption. It is in discussion with multiple liquor companies in Maharashtra, UP, TN, Karnataka, that have good markets both in TS and AP, to set up manufacturing units, citing industry-friendly policies.
As per the sales records of “production and demand” in 15 distilleries of Telangana, the state has an average sale of 17 lakh cases each month. Of these, 3.2 lakh cases are imported from various states.
The imported liquor is mostly branded and the companies do the bottling in the distilleries in the state for a certain price. “For instance, a different segment of Officer’s Choice brand, manufactured by Allied Blenders and Distillers, has a demand of over 3 lakh cases in both AP and TS per month.
Similar is the case with Seagrams, by Pernod Ricard Company and McDowell, which enjoys a good market in both states but do not have manufacturing units here. These companies want to establish their units locally as they would save money on transport and inter-state taxes,” said an Excise official.
The existing 17 distilleries (two are yet to be operational) in Telangana produce cheap liquor that have sales of over 14 lakh cases every month. The government is also mulling lowering “Under Proof” of liquor in anticipation higher sales.
“The present UP of liquor in the state is 25, containing over 42 per cent alcohol, when the UP is reduced to 35, the alcohol portion will be reduced to 37,” said Niranjan, owner of a distillery company in the state.
After lowering the UP, a liquor bottle that is currently sold for Rs 70 will be sold for around Rs 45-50. This will increase sales. “Maharashtra, which took a similar step, is enjoying additional sales of 4 lakh cases per month,” said an official.