Alcohol industry groups
representing Heineken, Diageo and Pernod Ricard
have urged the southern Indian state of Telangana to
settle $337 million in overdue payments, saying further delay
risks supply shortages and threatens business continuity, a
letter seen by Reuters shows.
Telangana is one of the largest alcohol-consuming regions in the
country but has had a tense relationship with beer and liquor
makers over payments for supplies to government depots. In
January, Heineken’s United Breweries – which
makes the popular Kingfisher beer brand – briefly halted
supplies to the state in protest.
The pending dues, dating back to May 2024, add financial
strain on the industry ahead of the festive season when demand
typically rises by 75%, according to the letter sent to the
state’s government on November 12.
Signed by the Brewers Association of India, Confederation of
Indian Alcoholic Beverage Companies and International Spirits
and Wines Association of India, the letter urged the state to
release the 29.85 billion rupees ($337 million).
“Non-clearance of old payments and delay in current payments
have created a situation which is not sustainable for the
industry,” the private letter said.
“Many companies will not be able to continue operations as
they do not have the financial resources to do so,” the letter
added, without specifying any company by name.
The Telangana government did not respond to repeated
requests for comment from Reuters.
Heineken, Diageo and Pernod also did not respond to
queries.
Many regions like Telangana require liquor companies to
supply only to state-run depots, which then sell to retailers,
forcing the companies to rely on state governments for payment.
The alcohol sector in India, a key growth market for global beer
and liquor producers, is already contending with increasingly
stringent regulations, including planned tougher advertising
restrictions and antitrust investigations.
(Reporting by Aditya Kalra; Editing by Emelia Sithole-Matarise)
Published on November 19, 2025
