The liquor industry contributes a significant portion to a country’s GDP. In India, the alcohol sector is estimated to contribute around 2-2.5 percent to the GDP. Specifically, the beer industry contributes roughly 0.3 percent to India’s GDP.
The shares of Domestic Liquour manufacturing stocks are trading bearish in the day’s trade following the India–United Kingdom Free Trade Agreement (FTA).
As part of the agreement, the import duty on Scotch whisky and gin, currently at 150 percent, will be reduced to 75 percent immediately and further lowered to 40 percent by the tenth year.
Iyer, a senior industry executive, in an interview with CNBC-TV18, stated: “We are disappointed with the drop from 150% to 75%. We had recommended a reduction to 100% in the first year, then gradually to 50% over 10 years.”
Brokerage View
According to global brokerage firm Citi, reducing the duty could lower retail prices by around 7.5 percent, assuming other state-level taxes remain unchanged. This price drop could lead to an 8–10 percent increase in volumes for the luxury and premium segment, driven by higher consumption and new Scotch whisky consumers.
Here is the List of stocks that are affected by the India-UK free trade agreement (FTA)
Som Distilleries & Breweries Ltd
Som Distilleries & Breweries Ltd is an Indian company known for its production of a wide range of alcoholic beverages, including beer and spirits. The company has established a strong presence in the Indian market. Notable brands include “Pentagon” (whiskey), “Power Cool” (Beer), and many others.
With a market capitalization of Rs. 2,451.27 crores on Wednesday, the shares of Som Distilleries & Breweries Ltd declined upto 5.2 percent, making a low of Rs. 125.50 per share compared to its previous closing price of Rs. 132.50 per share.
Radico Khaitan Ltd
Radico Khaitan is one of the leading manufacturers of alcoholic beverages in India, offering a variety of liquors including whisky, rum, and vodka. The company is recognized for its premium products and has a strong foothold in both domestic and international markets. Famous brands include “Rampur Indian Single Malt”, “Magic Moments” (vodka), and “Contessa” (rum).
With a market capitalization of Rs. 32,740.02 crores on Wednesday, the shares of Radico Khaitan Ltd declined upto 4.2 percent, making a low of Rs. 2425.05 per share compared to its previous closing price of Rs. 2534.00 per share.
United Spirits Ltd
United Spirits is one of the largest alcohol companies in India. It produces a wide range of spirits, including whiskey, rum, and vodka. The company is best known for its flagship brand “McDowell’s No. 1” (whiskey), along with “Royal Challenge” (whiskey),”Smirnoff” (vodka), and many more.
With a market capitalization of Rs. 1,15,950.64 crores on Wednesday, the shares of United Spirits Ltd declined upto 2.3 percent, making a low of Rs. 1538.60 per share compared to its previous closing price of Rs. 1575.85 per share.
Sula Vineyards Ltd
Sula Vineyards is one of India’s top wine producers, based in the Nashik region. The company is renowned for its premium wine production and has played a significant role in promoting Indian wines internationally. Famous wine labels include “Sula” (red, white, and sparkling wines), “Rasa” (premium wine), and “Dindori” (red wine).
With a market capitalization of Rs. 2,328.86 crores on Wednesday, the shares of Sula Vineyards Ltd declined upto 2.2 percent, making a low of Rs. 271.25 per share compared to its previous closing price of Rs. 277.55 per share.
Globus Spirits Ltd
Globus Spirits is a prominent player in the Indian alcohol industry, specializing in the production of a variety of spirits, especially whisky and Indian-made foreign liquor (IMFL). The company is recognized for producing quality spirits at competitive prices. Popular brands include “Globus” (whiskey), “Terai India” (gin), and “Brothers & Co” (whiskey).
With a market capitalization of Rs. 2,812.28 crores on Wednesday, the shares of Globus Spirits Ltd declined upto 2 percent, making a low of Rs. 960.00 per share compared to its previous closing price of Rs. 979.65 per share.
Written by Sridhar J
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