NEW DELHI: Paul P John, the chairman and MD of Bengaluru-based John Distilleries, says he is not concerned about competition from Europe as long as Indian companies are allowed to do business there as well.
He says despite regulatory challenges, Indian liquor companies have proved they can compete on quality.
In an interaction with TNIE, John said free trade agreements with European countries will have some impact on Indian liquor manufacturers, but he would rather fight in the market based on quality than being protected with some kind of tax barriers.
“The tariff (on foreign liquor) should be reduced, but Indian companies should also be able to do business there. They use non-tariff laws such as ageing and maturity eligibility to restrict access to Indian brands. I feel they should also open up their markets to us equally like we are opening ours for them,” he says. The ongoing India-UK trade agreement raises hope of reduction of 150% tariff on Whiskey from Scotland and the UK. This could lead to increased competition for home-grown whiskey manufacturers in India.
According to the Ministry of Commerce, India imported $354 million, while exported only $157 million worth of whiskies in FY24. When asked if Indian manufacturers have in them to withstand the competition, Paul John says,
“There’s nothing stopping us. We have been doing it, in spite of all these challenges and winning awards and being recognized worldwide. We have the infrastructure in India, we have the people, and the willingness to work. I don’t see any reason as to where we will not be able to deliver. I think we’ve already proved that.”
John Distilleries’ Mithuna brand single-malt whiskey was declared the third-finest whiskey in the world by “Jim Murray’s Whisky Bible 2021”.
Even though well-known for its single malt whiskey, John Distilleries is also known in the mass market for its low-priced brand Original Choice. The company also has Vodka, Rum and Gin in its portfolio. The only missing link is a beer brand.
However, the chairman and MD says they are not looking at beer for the time being because that’s a very price sensitive, brand conscious market. “We need a completely different infrastructure to be able to actually produce and market the beer. And that’s not an area that I’m looking at now,” says Paul P John.