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Case Title:

Indian Liquor Industry's 'Prohibited Growth': The Legal Environment Factor

Publication Year : 2005

Authors: R. Muthu Kumar & Srinath Manda

Industry: Beverages

Region:India

Case Code: GBE0034

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
As of 2004, Indian liquor consumption was significantly low (0.6 litres per head per year) compared to other countries like China and UK where the consumption was 20 and 100 litres respectively. Due to the Indian government's regulations and taxes, the growth had been restricted. The government had decided to lower the taxes in 2004. However, analysts were skeptical over the further growth of the industry, despite the deregulations, due to the social concerns.

Pedagogical Objectives:

  • To discuss the impact of regulations and taxation on the Indian liquor industry.

Keywords : Indian liquor industry, Government and Business Environment Case Study,SABMiller and United Breweries, Deregulation and liberalisation, Central and state taxation policies, Legal environment and regulations, Regulation and prohibition, Central excise duty and value added tax, Purchase Power Parity (PPP), Social concerns women activists, Indian liquor beer spirits consumption, Indian government state governments, Indian beer industry alcohol whiskey rum, Liquor complete ban partial ban, Challenges religious reservations, Quantitative restrictions

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