French wine maker Pernod Ricard, which started its business in India almost 30 years ago, is no longer in the mood for new investments here. The company requested PM Modi to simplify tax related matters. But due to no positive response, now this announcement has been made. The company says that it is constantly facing problems in terms of ease of doing business. Pernod Ricard is a French company. It is the second largest wine and spirits seller in the world.
According to a Reuters report, Pernod Ricard lobbied to PM Modi’s office regarding his problems but with no success. On May 27, the company wrote a letter to the CBIC (Central Board of Indirect Taxes and Customs). Along with this, a letter written to Modi was also attached. The company says that it had done this exercise to reduce its miseries. The report says that the company’s legal dispute in India has been going on since 1994. But in recent times it has increased further. Due to Make in India, the lives of almost all foreign companies are in danger. The company says that it is trying to protect its rights.
However, earlier in a letter written in November, the French company had shared a plan, in which it was said to increase the production capacity by 40 percent by 2025. But now it is being told that the investment plan has almost come to a halt due to the ongoing legal disputes regarding tax. The company is urging the Indian authorities to resolve the dispute so that it can be easier to operate here.
India is the largest and most profitable market for Pernod Ricard globally. The company’s Indian unit accounts for 10% of its total sales and 8% of its EBIT. In the last few years, the company has been consistently growing more than 15% in sales due to premium brands. The company had also said in its investors meet that we have done well in all the portfolios.
When the highway ban was hit
When the Supreme Court banned the sale of liquor along the state and national highways, one-third, or about 30,000 liquor shops, had to be closed. As a result, the demand for alcohol has come down significantly. However, the court later clarified the order and allowed the reopening of many outlets, relaxing the rules for the sale of liquor. After that, there was an improvement in the consumer demand of liquor companies.
