The Indian liquor sector is a dynamic and rapidly growing industry, valued at USD 145.5 billion in 2024 and projected to reach USD 175.6 billion by 2033. Spirits dominate with 66.3% market share, while beer and other beverages account for 33.4%. Rising incomes, urbanization, and premiumization are key growth drivers.
The shares of the prominent alcoholic beverage company have seen bearish movement after the Maharashtra government hiked duty on Indian Made Foreign Liquor (IMFL) by 50%–60%, the steepest increase since 2011. This move is expected to raise IMFL’s Maximum Retail Price (MRP) by 30%–50%, potentially impacting demand and margins. The policy shift has triggered investor concerns over future sales and profitability in a key market.
Maharashtra, accounting for 10–12% of India’s liquor industry, has hiked IMFL duties to boost excise revenue. The move is part of efforts to tackle fiscal challenges and modernize the Excise Department. A high-level committee has recommended reforms in liquor production, licensing, and tax collection to enhance revenue and streamline regulatory operations across the state’s liquor sector.
The Maharashtra cabinet approved an AI-powered integrated control room to monitor distilleries, liquor manufacturers, and wholesalers, aiming to boost transparency and regulatory efficiency. Additionally, a new divisional office in Mumbai and superintendent offices in key cities like Thane, Pune, and Nagpur will enhance enforcement, curb smuggling, and combat illicit liquor sales across the state.
However, some alcoholic beverage stocks rose, with investors expecting companies in the Maharashtra-made liquor segment to benefit from the duty hike on Indian Made Foreign Liquor.
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Here are the alcohol stocks in focus after Maharashtra hikes IMFL excise duty:
| Company Name | Increased/decreased % |
| Radico Khaitan Ltd | (4%) |
| United Spirits Ltd | (6.74 %) |
| United Breweries Ltd | (2%) |
| Allied Blenders and Distillers Ltd | (7%) |
| Tilaknagar Industries Ltd | (3.4%) |
| Sula Vineyards | 13% |
| GM Breweries Ltd | 20% |
Written by Abhishek Singh
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