SIT begins probe into Andhra liquor firms, seeks data on volume, supply

FIle photo

The Andhra Pradesh Special Investigation Team (SIT) has begun collecting data from liquor manufacturers operating in the state, including Allied Blenders and Distillers, the makers of Officer’s Choice whisky, managing director Alok Gupta told Moneycontrol in an exclusive interview.

Gupta said that the authorities have requested historical data on the company’s volume, cost of goods, supply data, among others.

“It’s a uniform set of information that is being asked from 110 companies and the data collection process across all 110 companies has been running for over a few weeks now. We've been one of those 110 companies. None of our bank accounts are frozen and we have not received any communication from any government authorities as regards to our bank account,” Gupta told Moneycontrol.

The move comes as the SIT probes allegations of a Rs 3,200 crore scam linked to the liquor policy implemented by the erstwhile YSRCP regime. Last week, the SIT arrested retired IAS officer and former Secretary in the CMO K. Dhanunjaya Reddy and Officer on Special Duty (OSD) P. Krishna Mohan Reddy in the alleged liquor scam, according to news reports.

"We have complied with all the data that has been requested of us. As of now, there is no pending data from our end to the government," he added.

The Andhra Pradesh government constituted the SIT on November 6 to investigate allegations that liquor companies may have paid kickbacks to political and administrative players of the previous regime in exchange for business favours, including bulk orders and preferential treatment in the highly regulated state liquor market.

The SIT is expected to file its charge sheet in the case within the next four to six weeks, CNBC-TV18 reported last month, citing sources.

Big bet on premiumisation

Allied Blenders and Distillers reported a consolidated net profit of Rs 78.62 crore during the January-March quarter, led by the premiumisation of the portfolio.

"The consumption trend is experience driven, which is quality over quantity. The growth in the P&A (prestige and above) segment is higher than in the mass premium segment," Gupta said. The category contributed 51 percent to the company's Q4 revenue, with volumes rising 32.7 percent to 3.6 million cases in the quarter ended March 31.

"P&A will grow faster than mass premium. Therefore, we have to make sure that we are taking advantage of that. There is experience-led consumption, which is an opportunity for us at ABD in our super premium and luxury portfolio. In the mass premium segment, where we are a leader, we will look at both Indian and export markets," he added.

Allied Blenders and Distillers recently sent its first shipment to the US market, as part of its export expansion. "We've already expanded our footprint to 23 countries, and we'll expand it further," Gupta said.

The company expects FY26 to be better than FY25 with stable governments now in place and most major policy announcements already made.

Meanwhile, the company expects a 50 to 200 basis point impact on margins after the recently signed India-UK free trade agreement is fully implemented.