According to Ibis Researched Information Services Pvt Ltd, the breweries and distilleries industry in India is a rapidly expanding sector, currently valued at approximately USD 52 billion. It is projected to reach USD 70 billion by 2026, driven by a growing middle class and increasing urbanization. The Indian beer market alone has seen a consistent growth rate of 7-9% over the past decade.
On Wednesday, Andhra Pradesh CM N Chandrababu Naidu announced a new liquor policy which means the state government will not sell liquor from October 1. The vends will be allotted to private players through a draw of lots. Additionally, The government has decided to earmark 10% of vends for toddy tappers. The policy was finalized by a Cabinet
Moreover, the privatization of liquor vending would boost shop hours by three hours, introduce low-priced liquor at ₹99 or less, construct premium stores in 12 cities, promote microbreweries to enhance yearly excise income by over ₹2,000 crore and simplify sales.
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Here are the alcohol stocks that jumped up to 4% after the Andhra Pradesh government announced private retailers to sell liquor:-
United Breweries Limited
United Breweries Limited operates in two segments: beer and non-alcoholic drinks. The beer segment involves manufacturing, purchasing, selling, and trademark licensing, while the non-alcoholic drinks segment focuses on the production, purchasing, and sale of non-alcoholic beverages.
With a market capitalization of Rs 56,139.82 crore, the shares closed at Rs 2,123.25 per share, increasing around 4 percent as compared to the previous closing price.
Som Distilleries and Breweries Ltd
SOM Distilleries Breweries & Wineries Ltd, formerly SOM Distilleries & Breweries Limited, brews, ferments, bottles, cans, and blends beer and Indian Made Foreign Liquor. Its product offering includes alternatives in beer, rum, brandy, vodka, and whiskey categories.
With a market capitalization of Rs 2,334.04 crore, the shares closed at Rs 120.45 per share, increasing around 4 percent as compared to the previous closing price.
Tilaknagar Industries Ltd
Tilaknagar Industries Ltd. is an alcoholic beverage company. The Company is primarily involved in the manufacturing and sale of Indian Made Foreign Liquor (IMFL) and extra-neutral alcohol. The Company has a diverse portfolio of brands in various liquor categories, including brandy, whisky, vodka, gin, and rum.
With a market capitalization of Rs 5,988.40 crore, the shares closed at Rs 310.35 per share, increasing around 2.43 percent as compared to the previous closing price.
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Written by:- Abhishek Singh
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