Archive · 14 Aug 2025
United Spirits Hikes Prices After Maharashtra Excise Duty Rise
United Spirits, a liquor company, raised prices in Maharashtra because the government increased taxes on liquor.
Prices went up about 30-35%.
The CEO, Praveen Someshwar, said that although sales might go down a little, the company has also made some smart business decisions so the company will still grow.
Maharashtra introduced a new kind of liquor made in the state that is not affected by the tax increase, so that may change things.
The company aims for high-end products, which contribute a large portion of their income, to still grow quickly.
United Spirits (USL) hiked liquor prices 30-35% in Maharashtra.
The price increase followed Maharashtra's excise duty increase on Indian-Made Foreign Liquor (IMFL).
CEO Praveen Someshwar stated the IMFL market might contract due to higher prices.
Maharashtra introduced a new category, Maharashtra-made liquor (MML), exempt from the duty hike.
USL's Prestige and Above segment is committed to double-digit growth, with the popular segment's prices fully passed on.
- Who
- United Spirits Ltd (USL), a liquor maker
- What
- United Spirits increased liquor prices in Maharashtra.
- When
- Following the excise duty increase by the Maharashtra government in June.
- Where
- Maharashtra
- Why
- Due to Maharashtra government's decision to raise excise duties.
Market Impact
Business Strategy
Market Contraction vs. Stability
Market Impact
IMFL market may contract due to price hikes.
Business Strategy
Consumption habits are relatively stable, decline expected to be smaller than price increases.
- Price Hike
- 30-35% in Maharashtra
- Excise Duty Increase
- Over 50% on IMFL in Maharashtra
- Net Sales Value (Q1 FY26)
- ₹3,021 crore
- Profit after tax (Q1 FY26)
- ₹417 crore
- Prestige & Above segment
- 88.3% of net sales
- Popular segment's contribution
- 9.8%
