Fake Alcoholic Drinks
Indian culture is such that, we hesitate discussing Liquors or Alcoholic drinks, forget openly but even candidly. One of the reasons could be that, Alcohol drinking is not a welcomed feature in our society. Since Alcohol drinking is considered luxury it is also not discussed on public platforms. Correctly so, because people may say that, if you find any anomaly, don't drink.
But it is important to discuss the issue because the market size and drinking population in India is huge. Net sales of United Breweries and United Spirits put together itself was nearly Rs. 14,113 Crores in FY 2015-16.
On this platform, at least we can discuss consumer grievances and caution people. Therefore I am putting my views forward, which I wanted to share since long but couldn't find an appropriate platform.
My personal opinion is that, today, more than 60% of Alcoholic drinks being sold in Indian market, are either fake or duplicate. The figure of 60% looks simple but let us not forget to appreciate that, it means more than “one and half times” (40%) of original drink. This includes those sold by Wine shops, Restaurants and even Star Hotels (3 Stars and above).
At several occasions I come across with fake or duplicate Alcoholic drinks. When I raised the issue, my drink was changed without a word asked and I was not charged for the fake drink. The reason for not charging was simple that, if it was not billed, I will not have any evidence of buying fake drink and will not be able to lodge any complaint with any appropriate authority
Let us examine the reason for abundance of fake alcoholic drinks in the market, with suitable examples. Let us consider the State of Maharashtra. If the manufacturing cost 750 ml bottle of a Indian Made Foreign Liquor (IMFL) is Rs. 65, Excise Duty would be Rs. 195, VAT Rs. 97.50 and MRP of Rs. 422.50 leaving a margin of Rs. 65 for the manufacturer, out of which the manufacturer is supposed to pay transportation, Distributor & Retailers margins and other local taxes and duties as applicable. Whereas total Excise and VAT paid itself work out to Rs. 292.50.
Similarly, in case of Mild Beer, if the manufacturing cost of 650 ml bottle is Rs. 25, Excise Duty would be Rs. 37.50, VAT Rs. 26.25, MRP of Rs. 113.75, manufacturer's margin of Rs. 25 and total of Excise and VAT Rs. 63.75 per bottle.
In view of these facts, the manufacturer is left hardly with any margin after paying transportation, Distributor & Retailers margins and other local taxes and duties.
In case of fake drinks, all Government duties and taxes are avoided whereas there is no difference in MRP making it a lucrative business. These avoided Government Taxes and duties are shared between Manufacturer, Dealers, Distributors and greasing Government machinery. Since the revenue involved is huge, the matter is deep rooted.
Now, let me share the method by which I differentiate a fake drink from a genuine one:
1. Try to find Batch Number and date of manufacturing on the pack. But, not necessarily, if the Batch No. and date is mentioned, the products is genuine. But if it is not mentioned, it is definitely fake.
2. In case of Beer, take a small sip, roll it in the mouth for a few seconds and then spit it or swallow. If a tail end bitter taste id found on the tongue, instead of a smooth taste, the Beer is fake.
3. In case of IMFL, I smell the drink. If there is a strong pungent smell, instead of typical odour of that particular brand, the drink is fake.
4. In case of drinking a fake drink, I run with upset stomach and severe gastric problem and that's why I don't accept a fake drink.
My observation is that, more popular (Fast Moving) the brand, there are more chances of its being fake. Also, more expensive the product, more vulnerable it is for being fake because it leaves better margins for the manufacturer.
The question which still remained unanswered for me is that, who manufactures these fake drinks? What could be the source of such a huge volumes of Bottles, Labels, Caps, Seals, dispensers and other packaging material in the same design and pattern as in case of genuine ones? Bottles can be recycled, but what about other packaging material?
My objective of sharing this information is to caution common people so that they can be protected from drinking fake drinks and may be, if possible, alert State Governments so that they can crack such fake Alcoholic Drink Mafia and generate better revenue for the development of their respective States, if they are not already aware of the issue. more
But it is important to discuss the issue because the market size and drinking population in India is huge. Net sales of United Breweries and United Spirits put together itself was nearly Rs. 14,113 Crores in FY 2015-16.
On this platform, at least we can discuss consumer grievances and caution people. Therefore I am putting my views forward, which I wanted to share since long but couldn't find an appropriate platform.
My personal opinion is that, today, more than 60% of Alcoholic drinks being sold in Indian market, are either fake or duplicate. The figure of 60% looks simple but let us not forget to appreciate that, it means more than “one and half times” (40%) of original drink. This includes those sold by Wine shops, Restaurants and even Star Hotels (3 Stars and above).
At several occasions I come across with fake or duplicate Alcoholic drinks. When I raised the issue, my drink was changed without a word asked and I was not charged for the fake drink. The reason for not charging was simple that, if it was not billed, I will not have any evidence of buying fake drink and will not be able to lodge any complaint with any appropriate authority
Let us examine the reason for abundance of fake alcoholic drinks in the market, with suitable examples. Let us consider the State of Maharashtra. If the manufacturing cost 750 ml bottle of a Indian Made Foreign Liquor (IMFL) is Rs. 65, Excise Duty would be Rs. 195, VAT Rs. 97.50 and MRP of Rs. 422.50 leaving a margin of Rs. 65 for the manufacturer, out of which the manufacturer is supposed to pay transportation, Distributor & Retailers margins and other local taxes and duties as applicable. Whereas total Excise and VAT paid itself work out to Rs. 292.50.
Similarly, in case of Mild Beer, if the manufacturing cost of 650 ml bottle is Rs. 25, Excise Duty would be Rs. 37.50, VAT Rs. 26.25, MRP of Rs. 113.75, manufacturer's margin of Rs. 25 and total of Excise and VAT Rs. 63.75 per bottle.
In view of these facts, the manufacturer is left hardly with any margin after paying transportation, Distributor & Retailers margins and other local taxes and duties.
In case of fake drinks, all Government duties and taxes are avoided whereas there is no difference in MRP making it a lucrative business. These avoided Government Taxes and duties are shared between Manufacturer, Dealers, Distributors and greasing Government machinery. Since the revenue involved is huge, the matter is deep rooted.
Now, let me share the method by which I differentiate a fake drink from a genuine one:
1. Try to find Batch Number and date of manufacturing on the pack. But, not necessarily, if the Batch No. and date is mentioned, the products is genuine. But if it is not mentioned, it is definitely fake.
2. In case of Beer, take a small sip, roll it in the mouth for a few seconds and then spit it or swallow. If a tail end bitter taste id found on the tongue, instead of a smooth taste, the Beer is fake.
3. In case of IMFL, I smell the drink. If there is a strong pungent smell, instead of typical odour of that particular brand, the drink is fake.
4. In case of drinking a fake drink, I run with upset stomach and severe gastric problem and that's why I don't accept a fake drink.
My observation is that, more popular (Fast Moving) the brand, there are more chances of its being fake. Also, more expensive the product, more vulnerable it is for being fake because it leaves better margins for the manufacturer.
The question which still remained unanswered for me is that, who manufactures these fake drinks? What could be the source of such a huge volumes of Bottles, Labels, Caps, Seals, dispensers and other packaging material in the same design and pattern as in case of genuine ones? Bottles can be recycled, but what about other packaging material?
My objective of sharing this information is to caution common people so that they can be protected from drinking fake drinks and may be, if possible, alert State Governments so that they can crack such fake Alcoholic Drink Mafia and generate better revenue for the development of their respective States, if they are not already aware of the issue. more
Viewed by 1737
View all 34 comments Below 34 comments
alcohol is a drink which is abused by many yet each one likes it again and again-say in gujarat state this is banned as this state gave mahatma gandhi jee to the nation and he is treated and well respected as father of nation-rashtrapita...THEN IF THAT IS THE PHILOSOPHY THEN ALCOHOL SHOULD BE BANNED IN WHOLE NATION...TO RESPECT RASHTRAPITA....FATHER OF NATION WHICH IS Impossible Thus better is to remove that crazy thought of prohibition in gujarat...let people enjoy LIFE well not to allow in public place not while driving but at home or at meetings this is needed very much needed...why then to keep Hippocratic that mahatma gandhi jee were born in gujarat-late mr morarajee bhai also once prime minister and even to day highly respected politician leader...but gone those days...remove this Hippocratic approach and STOP GUJARATI PEOPLE RUNNING EVERY WEEK ENDS TO ABU ROAD OR DIU OR DAMAN OR BICHCHHUWADA AND UDAY PUR....PL GIVE LIBERTY OR CONTROLLED LIBERTY more
Jun 02
It has become a selfish option for Political Parties to ignore the articles set for the interest of the general public . Just like the issue of Alcohol , most important welfare measures of the general public particularly poor are grossly neglected and set aside by the Congress party that ruled the country much of a time . Many S.C. directions also were set aside by this Political Party in its Rule in the Country . There is absolute need for questioning the issue of applicability of the Directive Principles of Rule in the Country as well as the other articles set for the poor and backward . There shall be an unique Ban of liquors with the contents of any % of Alcohol . more
Jun 01
Got some fresh update on the subject matter, though could not be confirmed. Earlier, Navi Mumbai restaurants and hotels used to source fake alcoholic drinks through wine shops as both were hands in gloves. These transactions were without any bill. After local authorities became strict and asked restaurants to buy alcoholic drinks from authorized distributors only, with Transport Permit (TP) so that, it can be ensured that necessary excise duty is paid. After this, new methodology came to light. First supply by Authorized distributors is being made with proper documentation. Subsequent a few supplies are being made with the same Batch No. and without documents. The particular batch No. is printed by the distributor on fake drinks, which is soured by them without any batch No. Therefore, the Restaurant is safe in case of Excise raids because they are holding proper documents of that particular Batch No. The same cycle is repeated after a few supplies. I am not sure, if Excise people are authorized to audit total volume of drinks bought and sold by restaurants. Or any other authority is supposed to audit such volumes but keeping their eyes shut on the subject matter. Accordingly, the sales of fake alcoholic drinks continues unabated and everyone is happy, including fake drinks manufacturers. more
Jun 01
HAVING HAD AN INSIGHT INTO THE IMFL INDUSTRY WORKINGS, I CAN SAY WITH SOME AUTHORITY THAT WHAT ATUL JAUHARI HAS STATED CONFORMS TO 'TRUE STATE OF AFFAIRS' IN THAT INDUSTRY ( OTHERWISE, HOW CAN TOPIWALLAS MAKE MONEY..??..) IF MR RATTI HAS SOME DOUBTS, HE IS NOT AWARE OF THE INSIDE WORKINGS OF IMFL INDUSTRY. I HAVE NOT MENTIONED ABOUT COUNTRY LIQUOR,SURA AND OTHER ALCOHOL RELATED INDUSTRY SINCE THE SITUATION THERE IS EQUALLY APALLING...!!!... more
Jan 28
