Diageo India Targets Price Cuts After Landmark India-UK Trade Deal
United Spirits Ltd, part of Diageo, anticipates lowering consumer prices and increased sales volumes following the India-UK free trade agreement. With duties on whiskey and gin reduced, the company plans to pass on savings to consumers, projecting significant volume growth in their imported products segment.
- Country:
- India
United Spirits Ltd, a subsidiary of Diageo, foresees a significant reduction in consumer prices and potential sales increase post-India-UK free trade agreement, executives announced in a recent investors' call.
The agreement slashes duties on UK whiskey and gin from 150% to 75%, aiming for consumer price cuts and increased volume in the imported products. Managing Director Praveen Someshwar emphasized the company's commitment to transferring all savings from duty reductions to consumers.
While the price reductions will mainly affect the imported Bottle-in-Origin segment, the Bottled-in-India category will see smaller price decreases. The price cut benefits are projected to fully materialize by FY26 or FY27, according to Diageo India, which continues to evaluate market conditions.
(With inputs from agencies.)
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