3. Introduction
• Indian Liquor Industry is divided into 2 broad
categories
Indian Made Foreign Liquor (IMFL)
Country Made Liquor
• Indian Liquor Industry with market value of INR
8500 Crore against INR 60 billions in 1999-00 & is
growing at 10-12%
• Shift from country liquor to IMFL because of rising
per capita.
4. Legal Environment
• Ban on direct advertising
• Excise regulations and Licenses
• ‘Regulated’ industry - movement, prices of intermediate
goods (molasses, ethanol) tightly controlled - state
governments exert considerable influence.
• Subject to licensing under Industrial (Development and
Regulation) Act, 1956
• Cap on licensed capacity; special license for expansion
• Excessof duties and taxes from bottling to sales stage;
varying from state to state.
5. Legitimate business & their surrogate
advertisements
Brands Surrogate advertisements
McDowell’s malt whisky McDowell’s Soda/water
Radico Khaitan’s 8 pm whisky Radico Khaitan’s water
Hayward’s 5000 Beer Hayward’s water/soda
Derby Special Derby special soda
Bacardi Liquor Bacardi Blast CDs & Cassettes
Bagpiper liquor Bagpipers soda and cassettes
Kingfisher Beer Kingfisher bottled drinking water
Royal Challenger whisky Royal Challenger golf accessories &
mineral water & cricket team
White Mischief Liquor White Mischief holidays
6. controversies
• As per cable Tv act 1995 liquor
advertisement is banned
• Satellite channels are not under this
ban
• Liquor is the main source of revenue
for channels
• Liquor co. started their promotion
through surrogate advertising
• Companies continued to brand
building & recall
7. Observation from case study
• Guidelines are not clear
• Casual approach of the
government
• Difference between guidelines &
rules
• Uncontrolled satellite channels
• Govt should ban to liquor
companies to do CSR activities
