Why the Summer 🌞 seems to be more brighter 🔆 for select Liquor manufacturers such as Som distilleries & Breweries🍻, Assosciated alcohols & Breweries🥃, Radico Khaitan🍸 & Market Leader United Spirits 🥃🍾 ?
The New Excise policy 📄 for Liquor
A Thread 🧵
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The New Excise policy 📄 for Liquor
A Thread 🧵
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Madhya Pradesh:
1. The M.P Govt has reduced overall excise duty on all kinds of liquor by 20%.
2. The M.P Govt has decided to allow the sale of liquor at all the Airports in M.P & Select Supermarkets in the top 4 cities of M.P.
2/n
1. The M.P Govt has reduced overall excise duty on all kinds of liquor by 20%.
2. The M.P Govt has decided to allow the sale of liquor at all the Airports in M.P & Select Supermarkets in the top 4 cities of M.P.
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3. The Govt has also allowed Country liquor shops to sell Beer.
4. The Govt has decided to issue Home Bar 🍺🍸🥃 licenses to Individuals having an annual income of ₹1 crore or more.
5. The Govt has also allowed setting up of Micro breweries by Individual hotels.
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4. The Govt has decided to issue Home Bar 🍺🍸🥃 licenses to Individuals having an annual income of ₹1 crore or more.
5. The Govt has also allowed setting up of Micro breweries by Individual hotels.
3/n
New Delhi:
1. The Govt of New Delhi has decided to exit the liquor business Completely which has led to creation of new Selling Zones & entry of more Private players into the sector (approximately 600 licenses have been alloyed until now out of the proposed 800 licenses).
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1. The Govt of New Delhi has decided to exit the liquor business Completely which has led to creation of new Selling Zones & entry of more Private players into the sector (approximately 600 licenses have been alloyed until now out of the proposed 800 licenses).
4/n
2. The Govt had also allowed private players to give huge discounts of upto 25 per cent on imported brands, 20 per cent on Indian made liquors and 15 per cent on beers. The discounts were initially discontinued due to violations of Covid but were recently implemented again
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Maharashtra:
1. The Maharashtra Government has slashed the Excise duty further on Imported Liquor by 50%, the duty has now been reduced to 150% from 300% earlier.
2. The Maharashtra Govt has also allowed the Sale of Wine in Supermarkets with the Appropriate Licenses.
6/n
1. The Maharashtra Government has slashed the Excise duty further on Imported Liquor by 50%, the duty has now been reduced to 150% from 300% earlier.
2. The Maharashtra Govt has also allowed the Sale of Wine in Supermarkets with the Appropriate Licenses.
6/n
Kerala:
1. The Kerala Govt has decided to give allowance to opening of Beer Pubs in I.T parks, the state has over 4 I.T parks where over one lac people are employed, the move is expected to increase the number of liquor shops in the state to 500 shops from 400.
7/n
1. The Kerala Govt has decided to give allowance to opening of Beer Pubs in I.T parks, the state has over 4 I.T parks where over one lac people are employed, the move is expected to increase the number of liquor shops in the state to 500 shops from 400.
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Now let us have a look at the stocks which are most likely to benefitted from these policy changes:
1. United Spirits as the Co gets a good chunk of its overall revenues from Imported scotch & Maharashtra happens to be one of the Key markets for the Company.
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1. United Spirits as the Co gets a good chunk of its overall revenues from Imported scotch & Maharashtra happens to be one of the Key markets for the Company.
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Som Distilleries & breweries as well as Assosciated alcohols & breweries due to their major exposure in the State of Madhya Pradesh, SDBL is a market leader in beer whereas ASALCBR is a leader in Desi daru & Assosciated due to its sales of Premium IMFL brands to Delhi.
9/n
9/n
Radico Khaitan due to the introduction of Jaisalmer Gin & Rampur Single malt whiskey as well as Royal ranthambore in Delhi last year only. These brands fall in the Prestige & Above category and are extremely high Margin brands.
End of Thread 🧵
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End of Thread 🧵
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Disclaimer: The thread has been created for educational purposes only and none of the stocks mentioned should be viewed as Buy/Sell recommendations.
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