Sula Vineyards and GM Breweries recorded notable gains on June 11, following a policy shift in Maharashtra’s liquor taxation, which excluded beer and wine from an excise duty increase. The move caused divergent reactions across the sector, lifting certain stocks while pressuring others.
On June 11, Sula Vineyards' share price surged by as much as 13% to ₹335.45 on the BSE, while GM Breweries' share price climbed 18%. These gains stood out amid a broader decline in liquor stocks. In contrast, industry leaders United Spirits and Allied Blenders saw their shares fall by up to 7% due to the policy’s negative implications for Indian-made Foreign Liquor (IMFL) producers.
The Maharashtra government revised its excise structure, raising the duty on IMFL from 3 times to 4.5 times the declared manufacturing cost. However, beer and wine were exempted from this increase. This exemption directly benefits companies focused on these categories, driving investor interest in firms like Sula Vineyards and GM Breweries.
The policy changes have created a clear divide between liquor categories. Beer, with its lower alcohol content, remained outside the scope of duty revisions as Maharashtra already has some of the highest retail prices for beer in India. Wine too was protected, in line with the state’s historical support for its domestic wine industry, which plays a vital role in sustaining grape farmers and local wineries.
GM Breweries emerged as a notable gainer amid reports of the introduction of a new category, Maharashtra-made Liquor (MML). This new grain-based spirit will be manufactured locally and will require fresh registration. GM, with a stronghold in country liquor production, is viewed as well-positioned to capitalise on the potential of this new classification.
On the losing end of the policy change are major IMFL producers such as United Spirits and Allied Blenders. With the excise duty on IMFL raised significantly, companies in this segment are likely to experience margin pressures.
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Maharashtra's decision to safeguard beer and wine from increased duties aligns with its longstanding backing of local wine production. The state houses a majority of India’s wineries and is home to numerous grape growers, further strengthening the rationale behind maintaining favourable excise conditions for wine producers.
On June 11, 2025, Sula Vineyards share price opened at ₹300.00 on BSE, and was trading at ₹326.20 as of 12:25 PM. The stock registered a significant gain of 9.83%.
On June 11, 2025, G.M. Breweries share price opened at ₹730.00 on BSE, and was trading at ₹852 as of 1:03 PM. The stock registered a significant gain of 18.12%.
Maharashtra’s liquor policy overhaul has resulted in contrasting market movements, with Sula Vineyards and GM Breweries gaining traction due to their product focus. Meanwhile, increased duties on IMFL have weighed on larger industry players. As excise structures reshape market dynamics, investor interest appears to be flowing toward beer and wine-centric companies.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 11, 2025, 1:25 PM IST
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