Now, the bad news. International liquor companies proclaim that the entry oftheir brands will leave the market stirred, but not shaken. Though theremoval of quantitative restrictions (QRs) by April 2001 would permit easyavailability of these premium brands, high import duties are likely toensure they are priced out of the market.

India, as per World Trade Organisation commitments, has to phase out theimport duties from the current 245 per cent to 150 per cent by 2003. Eventhen, the duties will remain high. "When QRs go, the only change is thatso-called imported brands will be available in Indian shops. But prices willremain so high that no one will be able to afford them," said Pernod RicardIndia chairman and managing director Albert Elgrissy.

"Even bootleggers won't be affected, as brands will be overpriced in thedomestic market. However, the consumer is assured that he is getting genuinestuff, which is not the case with a smuggled brand," says UDV's Deepak Roy.But the prohibitive prices have not prevented the liquor multinationals frompreparing their mega brands for an Indian debut. UDV is set to launch itslegendary Johnie Walker Black and Red Label scotch whisky. Its Baileysliqueur will also make an entry.

A Johnie Walker Black Label will cost Rs 1,200 even if the duty is cut to150 per cent, which, industry sources say, is unlikely in 2001.

DCM Remy -- the three-way joint venture between DCM Shriram, HighlandDistilleries of Scotland, and Remy Cointreau of France -- plans to introduceits well-known premium Remy Martin cognac. At the current duty levels, a 700ml bottle will cost Rs 2,500 in the domestic market.

Similarly, Bacardi, which has made waves in the white spirits segment, willraise the curtain on its Cameno Real tequila. Hic. With such headyoccurences taking place in the liquor sector, domestic companies are alsoscrambling to get a piece of the action.

"The competition will increase only for the very premium segment. So, thereis no cause for worry. Indian companies are looking to get into tie-ups withforeign companies, as they can offer them sales and distribution networks,"said Radico Khaitan managing director Lait Khaitan.

Radico Khaitan, which has a joint venture with Whyte & Mackay, is scoutingabout for other multinational tie-ups, and is negotiating with severalcompanies to represent them in the Indian market when the QRs go.

The big fry in the liquor business, such as United Breweries, have alsooffered the use of their distribution networks to foreign players.