INDIA: Indian market continues down road to liberalisation
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.
As Pernod Ricard, Allied Domecq and Fortune Brands close in on the biggest drinks industry deal since the sale of Seagram, opinion about how the deal will be structured and who stands to win and lose ...
It's been a quiet day on the Pernod/Allied Domecq front....
Conflicting reports circulated this weekend over whether Bacardi International is looking to form a counter-bid for Allied Domecq....
Todays press reports into Pernod and Fortune's hopes to buy Allied Domecq warn of possible conflicts and set a date for completion....
Pernod Ricard and Fortune Brands are considering a US$13 billion bid for Allied Domecq, the world's second-largest spirits company. Were it to take place, Pernod and Fortune would split Allied's brand...
Pernod Ricard and Fortune Brands are hoping to buy Allied Domecq for around 670p per share, according to press reports....
Anheuser-Busch has revealed plans to launch a new variant in its Bacardi Silver range....
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
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