Liquor makers namely Khoday India, GM Breweries, Globus Spirit, Radico Khaitan, United Breweries will continue to remain under pressure as the ‘sin stock’ are targeted once again.
This time, it is the Chief Minister of Andhra Pradesh Jagan Mohan Reddy’s orders that are set to bruise brewery business in India.
Reddy has taken a step that will move towards imposing a complete ban on alcohol in Andhra Pradesh.
The licenses of all bars in the state have been revoked. The decision came into force, and the bars will remain closed till December 31st.
The state government has issued orders to this extent. The government has announced a new bar policy to reduce the bars by 40%.
The new policy will be implemented in January. According to the new policy, the bars will remain open till 8 pm.
The new bar policy states that the owners need to take a license by paying an amount of Rs 10 lakh in the lottery process.
Recently, the Delhi government ordered destroying all booze stocks older than eight days.
The move is ‘pegged’ at checking pilferage, refilling, bootlegging, adulteration and ensuring good quality drinks for customers.
Non-compliance with the order would result in suspension and cancellation of liquor licenses.
Liquor manufacturers and breweries have not been doing well in the Indian market this year, having failed to lift investor spirit…
A demand slowdown in the economy singes such stocks rather late in the day, and only under extreme circumstances.
Even the April-May general election, state elections and ICC World Cup earlier this year failed to lift the performance of these stocks.
Liquor stocks such as Globus Spirits, United Spirits, United Breweries, and others have declined between 3% and 20% during the current year.
The latest move by Andhra Pradesh government will definitely keep the spirit low.