The state hiked excise duty on Indian-made foreign liquor (IMFL) by over 50%, a move that is expected to push retail prices up by more than 60%. Country liquor and imported premium liquor were not spared either, with their retail prices likely to rise by 14% and 25% respectively.

However, in a major relief for consumers and certain manufacturers, beer and wine have been left out of the duty hike. Additionally, the government introduced a new category called Maharashtra-made liquor (MML), which will also enjoy exemption from the revised duties.

The policy shift triggered strong buying in stocks with significant exposure to the beer and wine segment. Investors saw this as a positive for companies like Sula Vineyards and GM Breweries, both of which are headquartered in Maharashtra and stand to benefit from the tax break.

GM Breweries is engaged in the activities of manufacturing and marketing of Alcoholic Beverages; such as Country Liquor (CL) and Indian made Foreign Liquor (IMFL). It is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share.

Sula Vineyards is principally engaged in the business of manufacture, purchase and sale of premium wine and other alcoholic beverages.