INDIA: Indian market continues down road to liberalisation
The Indian Ministry of Industry has decided to end the dividend balancing requirements for foreign liquor companies. The requirements are part of the export obligation commitments undertaken by any foreign drinks company operating in India.Industry sources also said that the government was considering to scrap export obligations altogether as part of the on-going liberalisation of the industry.Reports from the Ministry suggest that the government will announce next week its plans to finish with dividend balancing requirements because its forex reserves are at a comfortable level and the earnings from liquor companies are no longer required.Certain sectors of the Government also believes the harsh export obligations are stifling the growth of the drinks industry in India.Under current rules liquor multi-nationals are required to balance the outgo of dividends within seven years of operation to the parent company with imports of raw material and technology.The end to this rule will benefit the likes of Seagram, Pernod Ricard, Bacardi and UDV all of whom operate in India. However, Albert Elgrissy of Pernod Ricard's Indian operations said the move was a minor development."What would be clinching for the trade is the removal of export obligations altogether," he said.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- A Wild Geese, Pernod Ricard conspiracy theory?
- Coca-Cola Beverages Africa - A new powerhouse
- Can craft breweries compete in lager arena?
- Remy Cointreau's Q1 performance by brand, region
- SABMiller's Q1 2017 results - Preview
- Diageo starts formal talks over UK pension cuts
- New Hendrick's Gin would have to be "unusual"
- Diageo silent on United Spirits job losses
- AB InBev faces US$7bn price rise for SABMiller
- Brown-Forman takes distribution in Spain in-house
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends