Foreign liquor companies such as Diageo and Pernod Ricard are going to have a tough time in the future. There are 4000 military shops in India which makes it one of the largest retail chains in India. As per internal order from the Defence Ministry, reviewed by Reuters, said that in the future, ‘procurement of directly imported items shall not be undertaken’.
India’s defence canteens sell liquor, electronics, and other goods at discounted prices to soldiers, ex-servicemen, and their families. With annual sales of over $2 billion.
The order did not specify which products would be targeted. However, industry sources said they believed imported liquor could be on the list.
Imports make up around 6-7% of total sales value in the defense shops, according to an August research column of the government-funded Institute for Defence Studies and Analyses (IDSA). Chinese products such as diapers, vacuum cleaners, handbags, and laptops, account for the bulk of it, it said.
Reuters reported in June that Pernod and Diageo had briefly stopped receiving orders for their imported brands from such government stores. Diageo did not respond to a request for comment, while a Pernod spokesman declined to comment.