Som Distilleries To Scale Up IMFL Focus From 6% To 20% In Total Business In 2025, Says MD JK Arora

Som Distilleries and Breweries Ltd will focus on Indian Made Foreign Liquor this year, according to Managing Director JK Arora. "In April, we have had an exceptional growth for IMFL. This year the share of IMFL will be much more; in the total business our share should be from 6% to 20%," he said.

"For the last two years, we have focused more on beer because the growth in the beer industry was exceptional. But it does not mean that IMFL is not on our radar," Arora told NDTV Profit.

After nearly two-and-a-half years of consistent outperformance by beer, Indian Made Foreign Liquor or IMFL, has begun to outpace beer in Karnataka. According to Dolat Capital, beer sales declined 16.3% year-on-year in April 2025, while IMFL volumes rose 5.5%. The research firm noted that IMFL has outperformed beer for the past seven consecutive months.

"The last few quarters have been tough for us. Some distilleries and breweries have had exceptional growth in the market of Karnataka, as we have reached almost 22% market share of the beer," said Arora, reflecting on the recent slowdown in beer volumes even as IMFL gains ground.

"But there has been a misinterpretation in the industry that IMFL is getting beaten by the affordable beer in the state of Karnataka," said Arora.

IMFL's Edge Over Beer

Dolat Capital attributes IMFL's recent edge to three key factors: A high base effect for beer following its sharp growth during FY23–H1FY25. The third excise duty hike on beer in Karnataka in just 18 months, which came into effect on Jan. 20, 2025. A 15–20% MRP cut in the prestige and above (P\&A) segment of IMFL in the state.

While beer contributes around 20% to the state's excise revenues, IMFL contributes nearly 80%. Dolat Capital warns that the beer industry in the state may decline 5–10% in FY26 due to rising taxation.

"Government has decided to promote IMFL. But, when we gave continuous representation to them, that beer is contributing more revenue than IMFL. The recent draft notification, which will be implemented soon, focuses on affordable beer is good", Arora said.

"Then you will find that the beer, which is costing around Rs 145, will come down to Rs 125. This whole year would be better for the beer industry. Expect beer to get more affordable than Indian Made Foreign Liquor," he added.

Revival Of Beer Sales

Arora expects a revival in beer volumes beginning in May as the new excise structure begins to take effect. "It is the government who has made the shift again; now these things are inert, as the taxation has got down. So definitely, the volume is going to be up now. The new notification is in favour of the beer. So, we are looking for much higher growth," he said.

Despite recent challenges in beer, Som Distilleries remains focused on both segments.