by Aditya Kalra and Arpan Chaturvedi
NEW DELHI (Reuters) – Pernod Ricard is facing “massive losses” to its India business after its spirits brands were unavailable in the capital New Delhi for six months linked to a licensing issue, documents show. and sources.
Pernod Ricard has been present for more than 20 years in India, a crucial market for the group, where it operates thanks to licenses which are issued by each State individually and which must in most cases be renewed each year.
In a court document dated March 27, which is not public, Pernod Ricard indicates that it has requested a license from the decision-making authority on the subject in the city of New Delhi in August 2022 and claims to have still not received it. Since.
This lack of licenses prevents the group from being able to sell its products in bars and liquor stores in the Indian capital.
In the document, Pernod Ricard therefore indicates “to be severely affected with a loss of market share and turnover” and adds “to suffer massive losses”.
Without quantifying them, the group says it continues “to suffer significant commercial losses which increase every day”.
Two sources familiar with the matter said group brands Chivas Regal, Blenders Pride, 100 Pipers and Absolut are not currently available in New Delhi.
Authorities in the capital were not immediately available for comment. Pernod Ricard did not wish to comment on this subject.
The group has been facing significant regulatory difficulties in India for months.
The Indian administration is claiming the equivalent of 250 million euros from its local subsidiary for having undervalued the value of imports of concentrates for several years in order to limit the amount of duties to be paid.
A federal investigation is also being conducted against the group on suspicion of violations of the Delhi government’s alcohol policy, which led to the arrest last November of a commercial director of the local subsidiary.
(Aditya Kalra and Arpan Chaturvedi report; Blandine Hénault for the , edited by Kate Entringer)
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