Liquor Business In India: Know how to start and about profit

How Much Profit Does A Liquor Store Make In India?

The year 2020 might have been a major setback for businesses across the globe, but it has also allowed us to think of alternatives.
When all the businesses were shut down, many people started adapting to the needs of the time.
Be it starting the sanitiser production, PPT kits, or making masks, humans did not give up even in the most challenging times.
We learned to adapt and modify with each situation, and it was through this act that we were able to satisfy the scarcity of PPT kits in India.
One such beneficial industry that one might want to invest in is the liquor business.
Now before we start, it is essential to consider the legality of this work.
It might be a little challenging to get the permit and licenses for opening a liquor business, but it is worth it.
We highly suggest consulting a professional before you jump into this business as it is a complicated business and needs prior permissions and proper application before one can open such a business.
India is a huge country with states that regulate their own rules and policies.
Liquor sales are a business that falls right under state control.
States regulate the policies, price, and even the legality of alcohol.
There are dry states like Gujarat, Bihar, and Nagaland where alcohol consumption and sale are entirely banned, and there are other dry states like Mizoram and Lakshadweep with some exceptions.
Also, some rules specify the legal drinking age, which is different in each state.
Nevertheless, securing a license requires you to have a registered location for manufacturing and some advanced fee.
There are many ways you can partake in the liquor business.
You can either be involved in the manufacturing of liquor, distribution, or you can also open a retail shop for the same.
Each one has its terms and conditions and requires licenses and permissions.
Below is more information about these:

For Manufacturing

If you wish to open a distillery or brewery, you are required to get permission and license from the concerned states.
It is essential to have a designated and registered location to apply for the license and application.
One might also need to consider the costs for raw material, tools, and other requirements.
This process can be very rewarding as it is cost-effective, but it is lengthy and time-consuming as well.
One might need to hire a labour force in their process, and that adds to the cost.

Also Read: Whisky Brands in India

For Distribution

Distributors are the middle-men between manufacturers and retailers.
They sell the product at a commissioned price and also create a market for the brand among retailers.
It is necessary to have a license for this job.

Retail Stores

The most profitable business is to get into the retail business of liquor, which is allotted by the state government.
Every state in India has its policies for liquor retailers.
There are various other business ideas that you might want to consider.
For example, you can set up your brand in collaboration with a manufacturer and do an online business.
Following the 2020 trend, most businesses have shifted online, and so has liquor sales.
However, you will be required to secure a license for this.
Many manufacturers already started their online services during the pandemic.
It can be a great employment opportunity for freelance designers and communication/marketing experts.
The online market needs planning and experience, which creates many opportunities for creative freelancers out there.
It can also be a very profitable side business, and one might not even need a dedicated team for this business.

The Growing Trend of Online Marketing

What this year has taught us is that important meetings, discussions, and almost everything can happen online.
We saw colleges and schools going online, work from home in fashion, and the businesses shifted online too.
The digital space became a plethora of activities, where all the industries intersect and often collaborate.
With the growing internet presence, we also saw a rise in the demand for marketing professionals.
Almost every organization, be it educational, government, or corporate, hired professionals to help them build an online presence.
This also gave many people a fresh chance to venture into new businesses.
Women at home started cooking business online, online grocery stores became more visible, and many such creative endeavours.

The Market For Online Liquor Sale

It is almost impossible to manage the new norm of ‘social distance’ at liquor shops, especially in India, due to the huge population and poorly managed liquor shops.
The online liquor store is an effective alternative in these difficult times as they make sure of the safety of everyone.
It would require minimal effort from the buyers as they can order and receive liquor at the comfort of their home.
No more need to rush to the liquor stores as the stores are now available online on everyone’s devices.
This will also help in making sure the legality of buyers as they would be asked for an ID to confirm their age.
The online space for liquor marketing can be revolutionary as it will help in solving a lot of ethical concerns associated with liquor sales.
Legal age, consumption, and purposes can be kept under check by this practice.

FAQs

Q- Who can open a liquor business?

Ans- Opening a liquor business is tricky and requires plenty of licenses and permissions, but anyone with suitable resources and plans can open a liquor business after fulfilling the formalities.

Q- Do you have to be a certain age to open a liquor business?

Ans- This business requires you to be of the legal drinking age, which is different in each state in India. Please check the legal drinking age in your state.

Q- Where do we get raw material for the business?

Ans- You can contact the local farmers in your state who deal with wheat, sugarcane, grapes, and other materials.

Q- Can we open a liquor business in dry states?

No.
The dry states have a ban on the production, consumption, and sale of alcohol, although states like Mizoram have a prospective of local alcohol production with a certain alcohol percentage.
Please check the individual state laws for more information.

Q- How much money can I make in the online liquor business?

That depends on what role you take up in the business.
As an online retail store, you can make up to INR 50,000 to INR 60,000 in a month with effective marketing skills.

Q- How do we get a license for the liquor business?

There are various types of liquor licenses.
Please check with your lawyer or business supervisor which one should suit you.
You can submit the application with concerned authorities at the state government.

Q- Can we export the liquor across India?

Each state has its taxes and policies for liquor import and export.
It is possible to engage in intra-state export-import.
Please check with the individual state guidelines for more information.

Q- Can we export the liquor internationally?

It depends if you secure a license in the country you wish to export with.
Your company will have to be registered internationally to engage with import-export internationally.

Q- Does the government provide support to the liquor businesses?

Ans- There are no special provinces for the liquor business, but one can apply for a start-up loan through the government for a liquor business.

Q- Do you need a property to open the liquor business?

Ans- It is necessary to have a legal property in your name to apply for a liquor business license and related permissions.