The Competition Commission of India (CCI) has ordered a detailed investigation against Tamil Nadu State Marketing Corporation (TASMAC) for allegedly abusing its dominant position by limiting market access to certain brands of beer in Tamil Nadu. After establishing prima facie violation in its initial probe, the antitrust regulator has referred the matter to the director general (investigation) for further investigation.
ALSO READCables and wires manufacturers to post 16% revenue growth in FY25, says Crisil
In its 12-page order, the CCI said that TASMAC, a state government wholly-owned company which has a monopoly in the distribution and sale of liquor in Tamil Nadu, gave preference to certain brands over others in its procurement of beer. “It is observed that the share of brands of two manufacturers – Kals Breweries and SNJ Breweries – such as British Empire, SNJ 10000, Black Pearl, High Voltage etc. is significantly higher compared to other brands (with the exception of Kingfisher and Zingaro) in TASMAC’s procurement in the last three financial years,” the order said.
Even though TASMAC told CCI that it follows a weighted average sales calculation method to place monthly order for beer and Indian made foreign spirit (IMFS), the commission raised questions on the procurement method. For instance, the CCI noted that in the current practice, “the brand which has already been stocked and sold in the previous month more than the other brands will be automatically given higher orders in the present month. To this extent the formula appears to perpetuate the status quo of the sales and inventory position observed in the previous months”.
The CCI said that as per the price list available on the official website of TASMAC, out of 38 brands available from 6 suppliers, the only well-known brands that appear on the list are Tuborg, Carlsberg, Kingfisher and Fosters. Further, 21 out of 38 brands belong to just three manufacturers, including United Breweries (13 brands), SNJ Breweries (8 brands) and Kals Breweries (8 brands).
ALSO READCement volume growth to rebound in FY26
“It is also observed that the combined share of Kals Breweries and SNJ Breweries has significantly increased in the last three financial years – from 40.22% in 2021-22, to 58.41% in 2022-23 and 56.76% in 2023-24,” the order said.
Started in 1983,
» Read More
