TN reaffirms itself as the biggest market of IMFL; sales to grow by 20% | SupportBiz

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TN reaffirms itself as the biggest market of IMFL; sales to grow by 20%

 
The largest IMFL (Indian Made Foreign Liquor) market in the country, Tamil Nadu, is poised to see around 20 per cent surge in demand, which can push liquor sales to nearly Rs 30,000 crore in this fiscal, said Tasmac (Tamil Nadu State Marketing Corporation), reports Business Line.

Tasmac, the state-owned entity solely responsible for wholesaling and retailing liquor in TN, reported sales worth Rs 24,500 crore and Rs 21,700 crore in 2012-13 and 2011-12 respectively.

Tamil Nadu consumes about 50 crore litres (5.6 crore cases) of IMFL per year, closely followed by neighboring Karnataka and Andhra Pradesh accounting for the sales of 5 crore and 4.6 crore cases respectively.

Country liquor is not available in the southern states, due to which people in this region depend on IMFL, especially brandy, which accounts for 80 per cent of the sales. The rest are whisky, vodka and rum. The state has 10 manufacturers and over 200 brands are available in the market. There are around 7,000 outlets across the state, employing over 29,000 people.

Irrespective of brand, Tasmac had last year fixed the price of 180 ml (quarter) at Rs 70 (ordinary) and Rs 80 (medium) of IMFL and declared anything above Rs 80 to be a premium product.

TN government tightly controls the retail price of liquor. Excise duties, sales tax and VAT contribute a bulk of the retail price, making the liquor industry one of the biggest contributes to the state revenue. Last year, the state government earned over Rs 21,800 crore from the liquor business.