Investor Presentation
Spirits Industry in India
A highly regulated industry with complex structure
Market Structure
Free / Open market
Radico
RADICO KILAITAN LTD.
Overview
A business may apply for a license for a fee defined
by the state government subject to license
availability
Pricing Control
Company has reasonable
independence over price increases
States
Arunachal, Assam, Goa,
Maharashtra, Meghalaya, Tripura,
Uttar Pradesh
Auction market
State owned/
Government
corporations
The license for sale of liquor is auctioned by the
Government to the highest bidder on an annual
basis based on an auction process
The government is the wholesaler and/or
distributor who purchases directly from a company.
Some states also have retail shops run by the
government
Company has to negotiate price
increases with state appointed
distributors
Strict control on pricing by the
state government
Chandigarh, Haryana, Punjab
Andhra Pradesh, Chhattisgarh,
Delhi, Jharkhand, Karnataka,
Kerala, Madhya Pradesh,
Rajasthan, Tamil Nadu, Telangana,
West Bengal
Prohibition
States where sales of liquor is prohibited
Not applicable
Bihar, Gujarat
Investor Presentation | November 2020
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