Diageo India, the Indian subsidiary of British multinational company Diageo, is optimistic about the Indian market and has called for reforms in the liquor sector. The company expects sustained double-digit growth and profitability in India.
Diageo India’s Optimism: Hina Nagarajan, Diageo India MD & CEO, expresses positivity about the opportunity in India and the company’s plans for growth. They are experimenting within permissible boundaries to expand their business.
Need for Reforms: Diageo India calls for inflation-indexed price increases and a harmonized tax structure for the liquor sector in India. Frequent policy changes by state governments make business planning difficult, and a harmonized tax structure would help reduce illicit liquor trade.
Government Response: The Indian government is yet to respond to Diageo India’s requests. However, various reforms have been under consideration, such as a national alcohol policy and a single-window clearance system for liquor companies.
Details of Diageo India’s Requests:
- Inflation-indexed price increases: Diageo India seeks the ability to adjust product prices based on inflation, safeguarding their profits from the impact of rising costs.
- Harmonized tax structure: Uniform tax rates across states would facilitate better business planning for Diageo India and contribute to curbing the illicit liquor trade.
Conclusion: Diageo India’s optimism reflects a positive outlook for the Indian liquor sector. While the response from the Indian government remains uncertain, the company’s calls for reforms aim to enhance business operations and drive growth in the industry.
