The reduction in import duty on British alcoholic beverages under the India-UK Free Trade Agreement (FTA) will intensify competition for Indian liquor manufacturers while driving quality improvements across the domestic industry, according to Sameer Mahandru, Founder of IndoBevs, the maker of BroCode.
With import duty on UK alcoholic beverages reduced from 150% to 75% from July 15, Mahandru said Indian distillers, particularly those in the malt whisky segment, would face greater competition from Scotch producers. However, he believes the move will ultimately benefit the industry by encouraging innovation, better product quality and competitive pricing.
“There will be higher competition for players making malt today and for companies like us that will enter the segment in the next couple of years. But competing with the best in the world will only make the Indian industry better,” Mahandru said.
He added that Indian companies continue to enjoy a competitive edge through their understanding of local consumer preferences, saying that market knowledge and localization remain key strengths over global liquor companies.
Mahandru also said recent geopolitical tensions exposed the vulnerability of the alcoholic beverage industry to global supply chain disruptions. The Iran conflict increased raw material costs by 20-30%, disrupted supplies and impacted exports to West Asia for nearly six months before shipments resumed.
Despite these challenges, IndoBevs expects to sustain its growth momentum after recording around 30% growth in FY26 and is targeting 30-35% growth in the current financial year.
The company has raised bank financing to develop a greenfield malt distillery in Muzaffarnagar, Uttar Pradesh, involving investments of over ₹200 crore, as it bets on growing demand for Indian malt whisky.
Mahandru said IndoBevs is also preparing for an initial public offering (IPO) within the next three years while expanding its portfolio beyond its flagship BroCode brand through labels such as Wingman, Glen Eden, Enso and Bonga.
The company is also developing indigenous alcoholic beverages inspired by India’s regional ingredients and traditional recipes, aiming to build globally recognized Indian alcohol brands.
IndoBevs currently exports to 11 countries, including the US, Canada, Australia, the UK and the UAE, and plans to expand its global presence to 30 countries by the end of the year.
