The Indian Liquor Industry Prohibition Story

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Case Details:

Case Code : BECG010
Case Length : 08 Pages
Period : 1970 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : T-Series, Super Cassettes, HMV, Venus
Industry : Media, Entertainment & Information
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Indian Liquor Industry

The Indian liquor industry is divided into two broad segments:

Indian Made Foreign Liquor (IMFL) and country-made liquor. IMFL comprises alcoholic beverages that were developed abroad but are being made in India (whisky, rum, vodka, beer, gin and wine), while country-made liquor comprises alcoholic beverages made by local breweries.

While many Indian and MNC players were present in the IMFL segment, the unorganized sector accounted for almost 100% of the country-made liquor segment...

Prohibition in India

Soon after independence, prohibition was imposed in the erstwhile state of Bombay. The first large-scale movement against alcohol began in the 1970s, when rural women in various parts of the country protested against the sale of liquor in their villages...

The Debate

The efficacy of prohibition to curb alcohol consumption became questionable when it became known that the availability of alcohol actually increased in Haryana and AP after prohibition, albeit at higher prices. The experiences with prohibition all over the world prove that it is extremely difficult to make it a success...

A Problem Unsolvable

Restraining the consumption of alcohol to safeguard the interest of the society is a complex and complicated issue. According to analysts, unless the state governments established well-defined regulations;...


Exhibit I: The Indian Liquor Market


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