150 new liquor brands seek nod to enter T’gana market

Hyderabad: In a strong indication of growing competition in Telangana's liquor market, a total of 59 companies have applied for the supply of beer and Indian-made foreign liquor (IMFL) following two deadline extensions by the Telangana Beverages Corporation Limited. These applications include nearly 150 new beer and alcohol brands, signalling an influx of new players eager to enter the state's lucrative liquor industry.
The application process, initially launched on Feb 23, was extended twice, with the final deadline set for April 3. While only 39 applications were received after the first extension on March 24, the numbers surged significantly by the final deadline, reflecting heightened interest from liquor manufacturers.
Few players dominating
Despite the increase in applications, the Telangana liquor market remains heavily dominated by a few key players. According to industry sources, the state currently has 35 beer brands and 200 IMFL brands in circulation.
"The beer sector is primarily controlled by four major companies. In the IMFL segment, about 20 companies dominate the market, often selling multiple brands under different labels," sources said. Industry insiders said that many companies introduce multiple labels under their own umbrella to meet annual sales targets, taking advantage of Telangana's strong brand loyalty in the liquor sector.
Thriving liquor mkt
Telangana boasts one of the largest liquor markets in India, with monthly liquor sales reaching around 3,000 crore and annual sales totalling 30,000 crore. The demand is expected to spike further, particularly during summer and festive seasons.
One major factor driving new registrations is the rising cost of beer, which has made Telangana an attractive market for new entrants. Officials said that final selections will be based on quality and pricing, following a thorough verification process.
The Telangana govt anticipates a record revenue collection from the liquor industry in the coming financial year. For 2025-26, excise duty alone is expected to bring in 25,000 crore, a sharp increase from 20,000 crore in 2023-24.
With additional taxes and other revenue components, the state's total liquor sales are projected to reach 30,000 crore annually.
Microbreweries?
Govt sources indicate that Telangana may soon invite tenders for setting up microbreweries, further expanding the state's alcoholic beverage industry. This move is expected to diversify offerings and tap into the growing demand for craft beer.