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Due to the news of the implementation of the new liquor policy by the Andhra Pradesh government, the shares of liquor companies are excited. The shares of Radico Khaitan and Tilaknagar Industries are rising. The share of Radico Khaitan opened at Rs 2,030 on Tuesday against the closing price of Rs 2,045.45. After this, the share fell to Rs 2,005. But as soon as the notification came at 11 o'clock, the share crossed Rs 2,070.
Let's know about the new liquor policy of Andhra Pradesh... The notification has revealed that private players will also be able to do retail sales of liquor. The state government has restarted the policy before the year 2019.
Under the new policy, the price of select brands has been reduced to Rs 99 per quarter. The new liquor policy implemented from October 1 can see 7-8 percent volume growth in Andhra Pradesh. What will be the impact on the companies now? In a special conversation with CNBC Awaaz, the company's management said that 30 percent of the company's total sales come from Andhra Pradesh. On the new liquor policy, Tilaknagar Industries Chairman and Managing Editor Amit Dahanukar says that 30 percent of the company's total sales come from Andhra. The company's market share in Andhra Pradesh and Telangana is up to 50 percent. Tilaknagar Industries has said in its guidance that the company's business can see 8-10 annual growth in the next 5 years. Double-digit growth is expected in the financial year 2025. The company says that there is a possibility of strengthening brandy volume growth for the next 3 years. Brandy contributes 10 percent to the company's total sales. The company also says that apart from brandy, it will also increase focus on other segments. The government plans to increase liquor shops and privatize them. This will benefit companies like Tilaknagar Industries that have been established for 30-40 years.
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