Pernod Ricard India to approach Delhi authorities again

French liquor giant Pernod Ricard is planning to appeal again to the New Delhi government, which earlier this month rejected its license application again to operate in the capital due to ongoing investigations amidst allegations of serious economic offences and violating the city’s liquor policy back in 2021.

“We will be going back to the Finance Commissioner and to the court to appeal again,” Pernod Ricard India’s Chief Financial Officer Richa Singh told businessline, on the sidelines of the launch of her book “Beyond Numbers.”

She said it was an investigation and it was unfair to say that they were accused of wrongdoing. She added that they were cooperating with the authorities and were confident of coming out clean. “Till then don’t deny business to us.”

Pernod Ricard makes well-known liquor labels such as Chivas Regal, Absolut Vodka and 100 Pipers among others.

This is the third time that the government in Delhi has rejected the liquor company’s license and, according to reports, cited “lack of moral probity” despite an Indian appellate authority advising city officials to reconsider due to the absence of convictions in the ongoing investigations. Pernod had said in a statement that it did not agree with the decision.

“Over the last several years there have been no regulatory breaches. We are very strong on internal controls now,” Singh emphasized. “If there are small instances where there has been any case of wrongdoing, misappropriation, action is taken and we do let go of those employees,” Singh said.

India’s capital city is a key market for Pernod, having contributed 5 per cent to its total sales of $3.13 billion in the country last year.

However, Singh indicated that Delhi’s market share has declined significantly. “Post the changes that the government made in reaction to what was going on, I think Delhi market has shrunk,” she said, adding that it has reduced to “around 1 to 2 per cent from a 5 per cent.”

The company is mitigating the impact of losing out on Delhi by strengthening its presence in other states. “Luckily there are other states which have opened up which are supporting our growth like Andhra Pradesh, Karnataka has come up with some very progressive policies, Uttaranchal is another state,” Singh noted.

Published on May 24, 2025