Alcobev sector expects mixed spirits for Diwali, wedding season
NEW DELHI : As the festive fervour of Diwali and the unfolding wedding season, India’s alcoholic beverages industry is gazing at a varied landscape, with different states presenting a mixed bag of opportunities and challenges. Industry insiders project contrasting scenarios across states, influenced by state-level changes. Delhi, Karnataka, Pondicherry and Kerala are likely to see the impact of policy or duty changes.
Delhi, in particular, stands out due to a significant policy upheaval last year with political overtones, resulting in the complete transition of the alcoholic beverage business from private ownership back to state ownership. Meanwhile, Haryana and Uttar Pradesh are poised for business as usual, with a relatively stable environment expected during the festive and wedding season. Siddharth Banerji, managing director of Kyndal Group, known for producing Cutty Sark Blended Scotch Whisky and Bols Premier X.O., was optimistic about stable markets, highlighting Haryana and UP as favourable.
In contrast, Banerji acknowledged potential challenges in unstable markets, identifying Delhi, Karnataka, Pondicherry and Kerala, affected by alterations in policy, duties, or government actions, as setback areas. Analysts at Nuvama, an institutional equities firm that studied the September quarter results of United Spirits, a subsidiary of Diageo, said festive demand trends for the company for the upcoming quarter remain muted. It added that both volume and demand in September and October were lead indicators for the upcoming festive season and that United Spirits had not seen demand pick up like in the previous year’s festive season.
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