The cut in import duty on British alcoholic beverages under the India-UK free trade agreement (FTA) will intensify competition for Indian liquor makers but ultimately strengthen the domestic industry, according to Sameer Mahandru, founder of IndoBevs, the maker of BroCode.
As import duty on UK alcoholic beverages fell from 150% to 75% from July 15, Mahandru said domestic distillers would face stiffer competition with with Scotch makers. However, he believes the lower duties will push Indian manufacturers to improve product quality while benefiting consumers through better products and 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,” he said in an interaction with FE.
Mahandru said the financial muscle of global liquor companies alone would not determine the market. “We understand the Indian consumer far better than overseas companies ever can,” he said, arguing that localisation and consumer insight remain key advantages for domestic players.
He also said geopolitical disruptions has begun hurting an industry considered resilient to economic shocks. The recent Iran conflict drove up raw material costs by 20-30%, disrupted supplies and stalled exports to West Asia for nearly six months before shipments resumed.
“We always believed our industry was immune to recessions or crises. But this is the first time we genuinely felt the heat,” he said.
Raw material costs jumped 20-30% during the conflict, while imported inputs became difficult to source.
“Our raw material costs increased sharply, supplies got hampered and exports suffered. There isn’t much we can do because suppliers themselves don’t have stock and shipping has been disrupted.”
Despite the headwinds, IndoBevs expects to maintain its growth trajectory. The company grew around 30% in FY26 and is targeting another 30-35% growth this year. Mahandru said the company has remained profitable since launching its flagship BroCode brand in FY19 and stayed debt-free until recently.
Capital Investment
It has now raised bank debt to fund a greenfield malt distillery in Muzaffarnagar, Uttar Pradesh. The project, involving investments of over ₹200 crore, will be financed in phases.
Mahandru said the investment reflects his belief that India is approaching another structural shift in alcohol consumption. “The earlier transition was from molasses-based spirits to grain. The next shift will be from grain to malt. If that happens, the Indian malt whisky story will boom, and that’s the opportunity we are betting on,” he said.
The company is also preparing for a public listing. “If all goes well, we should be able to do an IPO in the next three years,” Mahandru said.
While BroCode contributes close to 70% of its sales, IndoBevs is looking to build a broader portfolio. It is scaling brands such as Wingman, Glen Eden, Enso and Bonga, while strengthening its leadership team with senior hires to support the transition.
“We don’t want to remain a one-brand company. The next phase is to become a portfolio-led business,” Mahandru said.
Indigenous Spirits
The company is also experimenting with beverages rooted in India’s regional drinking traditions, developing indigenous alcoholic drinks inspired by local ingredients and age-old recipes as it looks to create distinctly Indian alcohol brands.
“India has exported its food culture to the world, but not its alcohol. We are still drinking a colonial legacy. There will be an Indian alcohol story, and we are working towards it,” Mahandru said.
International markets are another focus area. IndoBevs currently exports to 11 countries, including the US, Canada, Australia, the UK and the UAE, and aims to expand that footprint to 30 countries by the end of the year.
