liquor – a billion dollar business

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  1. 1. LIQUOR A BILLION DOLLAR BUSINESS By S. John Wilfred MBA CRESCENT BUSINESS SCHOOL
  2. 2. HOW IT ALL BEGAN Initially started out to be a pain reliever Eventually became a thing of addiction Various forms of alcoholic beverages came into production Country sprit turned out to be highly predominant in rural areas, plunging through countless lives More than a fifth of alcohol produced in the world is consumed by Indians
  3. 3. GOVT Vs PRIVATE In Tamil Nadu, Kerala and Delhi the govt. Has everything under its control from wholesale to retail so as to make sure no revenue is spilled Andhra Pradesh, Orissa, Bihar, Chattisgarh, Rajasthan, Uttarakhand, Uttar Pradesh, Karnataka and Bihar, governments run the wholesale business, leaving retail to private players Maharashtras liquor business is in private hands
  4. 4. STATES COFFER Liquor amounts to a larger share of a states revenue Tamil Nadu incurs Rs. 21,800 crore revenue from liquor 20% of any states revenue is likely to come from liquor industries Likewise in Kerala 22% of its total revenue comes from bottle
  5. 5. In Karnataka its 20% of states Excise revenue West Bengals Excise revenue in the last financial year was Rs. 2,600 crore
  6. 6. DRINKING CULTURE Economic affluence, urbanisation, changing lifestyles and social mores are all persuading young people to take to drinking Indians drinking habits and patterns are problematic At least a third of the drinkers fall in the hazardous drinkers category NIMHNS study in Karnataka found that for every rupee the government got off the bottle, it lost more than Rs. 2 in terms of healthcare expenses.
  7. 7. PRICE RISE A SOLUTION? Asking a daily-wage worker to pay 600 per cent tax on his drink is cruel. The governments claim isnt right. No matter what the price is, the habitual drinker will buy his drink. Only, the quantity of food on his childrens table will shrink.
  8. 8. GROWTH Indian liquor industry was expanding 30 per cent year-on-year In 2015, liquor consumption is pegged to touch about 20 billion litres The total value of spirits, wine and beer consumed in India is projected to be in the neighbourhood of Rs. 1.5 lakh crore in 2015
  9. 9. POSSIBLE SOLUTION Strong campaign and awareness programmes Removing liquor form its root (long term process) Finding alternative ways to fill states coffer like solar power production, bio fuel and cutting down unnecessary expenses