I’m no expert, but my guess is that as the liquor gets more premium, the excise duty as a percentage of the bottle price becomes lower as per the data below (hope I’m referencing the right document/numbers).
For country liquor and cheaper priced alcohol (where most of the sales for established brands comes from), the excise duty is Rs. 82 per proof litre (where the bottles cost Rs. 180-200), while for brands like Indri it would fall in the Rs. 160 range per proof litre. Even though the proof litre as a percentage of the total quantity is slightly higher than single malt brands such as Indri, even if we assume the same percentage, they work out to 30-40% of the bottle price vs 5-6% for Indri (assuming its price is Rs. 3,100).
https://haryanatax.gov.in/HEX/DownloadPDF?formName=/ExcisePolicy2024_25/Excise_Policy_2024_25.pdf
Additionally, the CFO seems to have resigned. Any red flags here or is this just a coincidence?
Disclosure: Holding this stock, biased.
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