@sajithpai @pranavmanie What's missing is basics of excise policy. As someone who read through entire excise policy back in 2013 and knows industry, couple of quick pointers:

1) alcohol isn't cheaper in Gurgaon(or HT), it's just more expensive elsew. Delhi and upwards uses 100 yr old Punjab excise act

@sajithpai @pranavmanie 2) for those uninitiated, alcohol is even cheaper than HR in CHD, though not so cheap in cheap in UP.

The higher cost in UP is due to large trade marketing spend, that's allowed in by govt.

@sajithpai @pranavmanie 3) What's unique about HR, it allows merging wholesale with retail, ie every L1 gets 3 L2s. ie A wholesaler has chance to complete deals with brands, launch its own brands, leverage deals with bars and restaurants.

@sajithpai @pranavmanie 4) given the downstream integration, it's far better for retailers to move larger volumes faster, the classic high speed retail turn over driviing need to keep margins ( relatively) lower. In the end, it works better as consumers get cheaper booze and brand gets volume

@sajithpai @pranavmanie 5) prices are so competitive that even "folders" in dry state gujarat find it cheaper to buy it in South HR, and carry out across length of Rajasthan

@sajithpai @pranavmanie 6) for those wondering why Bom or BLR don't have it cheap, is for same two reasons:

Retail and wholesale are separated in both states.

Plus of course, duties are fairly high in both states, so larger working capital gets blocked in excise bonded warehouse.

@sajithpai @pranavmanie Topic for another time, how RK Hegde lost his CM chair over excise policy. But may be another time