India’s alcoholic beverage industry faces fresh profit stress, with Crisil warning that alcobev margins may fall by 150–200 basis points this financial year. The trigger is soaring glass bottle costs, linked to global supply chain disruptions. Revenue growth is also expected to slow. Still, companies are tightening financial discipline to manage the impact.
Alcohol producers in Bengaluru want Karnataka’s government to revisit proposed excise duty rules. They fear an AIB (alcohol-in-beverage) based structure could mirror a European model and worsen pricing outcomes. While the plan reduces pricing slabs, distillers worry duty hikes in lower slabs may raise costs for entry-level products, and are urging moderation.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Alcobev companies reported a slowdown in revenue growth in Q1 FY25, underscoring how election years can weigh on consumer demand. While firms leaned on premiumization and new product launches, the near-term momentum stayed muted. Executives now look to the festive season and continued launches to drive a turnaround after the early-year dip.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
