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Michael Jensen, CEO of Carlsberg India, has termed India as the most difficult market in the world, and you can’t blame him for that, since Jensen has personally experienced how politics can make business run on its fingers, making investors vary of future projects. 
 It was three years ago that <keyword id="6388010" type="ORGANIZATION" weightage="100" keywordseo="Bihar-CM">Bihar CM</keyword> <a href="http://www.businessinsider.in/Nitish-Kumars-government-imposes-13-5-tax-on-luxury-items-including-samosa-and-kachori/articleshow/50563854.cms">Nitish Kumar</a> had wooed Carlsberg to invest in the state, thus convincing it to set up a $25 million plant near Patna in 2014. However, after he was <a href="http://www.businessinsider.in/Nitish-Kumar-takes-oath-as-Bihar-CM/articleshow/49858253.cms">re-elected </a>last year, he went on to ban liquor in the state, which led to the company’s revenues falling and forcing it to consider pulling out, since there was no backup plan for this unexpected move. 
 
"It was a sizeable market and investment but they decided to do prohibition in 12 hours," Jensen told ET. 
 
Other than Carlsberg, Diageo Plc, United Breweries and Molson Coors are also worried about the ban since they have been running more than 70 distilleries and breweries in Bihar for over a decade now, which is an ideal market for these liquor companies, offering an abundance of raw materials (barley and wheat) and cheap labour. 
 
In Bihar, sale of alcohol has been banned since March this year, fulfilling the <a href="http://www.businessinsider.in/Banned-Alcohol-in-Bihar-to-be-banned-April-2016-onwards-CM-Nitish-Kumar-announces/articleshow/49934345.cms">promise </a>that Kumar made during his election campaign. 
 
Also read: <a href="http://www.businessinsider.in/Bihar-women-to-get-35-reservation-in-government-jobs/articleshow/50665360.cms">Bihar women to get 35% reservation in government jobs </a> 
 
"Our medium-term intent is actually (to) exit the state of Bihar from all manufacturing and related activities," United Spirits CEO Anand Kripalu was quoted saying in an investor call. "It is about just over 1% of our total business in terms of revenue and probably something similar in terms of profit right. So we believe, while it is an important state in terms of its contribution, it is not that material to our total business." 
 
The industry is, however, maintaining some hopes since sector lobby groups have challenged the ban in the Patna High court. 
 
"We are fighting against the unjust ruling to ban all liquor instead of just country and illegal liquor," said All India Brewers Association Director General Shobhan Roy. "Our breweries are running full capacity and we have claimed about 400 crore compensation for existing inventories and machinery." 
 
<a href="http://s3.india.com/wp-content/uploads/2014/06/nitish-kumar-3.jpg">Image source</a>

Nitish Kumar wooed Carlsberg to set up a plant in Bihar, and then banned liquor in the state

The ban on the sale of liquor within 500 meters of highways in the country would mean a probable loss of Rs 50000 crore for several state governments. This, because a list of prominent hotel chains, like the Taj, Oberoi, Hyatt and Accor groups will now have to stop serving alcohol to guests at their premium locations, thus denting the 
estimated revenue of state governments, which they would have earned from these hotels in form of taxes. 
 
Also read: <a href="http://www.businessinsider.in/The-11-best-Champagne-bars-in-the-world/articleshow/54549480.cms">The 11 best Champagne bars in the world</a> 
 
Riyaaz Amlani, president of the National Restaurant Association of India (<a href="http://www.businessinsider.in/strategy/restaurant-body-fights-back-says-dont-eat-if-you-dont-want-to-pay/articleshow/56313066.cms">NRAI</a>), told ET that along with this loss to the governments, restaurants, bars and pubs will also be taking a hit of Rs 10,000-15,000 crore, and 100,000 people will be out of work. 
 
Also read: <a href="http://www.businessinsider.in/good-karma-or-bad-man-behind-liquor-ban-cant-find-liquor-nearby/articleshow/57985331.cms">Good karma or bad? Man behind liquor ban can’t find liquor nearby</a> 
 
However, as per a tweet by Niti Aayog CEO Amitabh Kant, the ban would impact jobs of around <a href="http://www.businessinsider.in/1-million-people-to-lose-job-inindia-blame-drunken-driving-for-it/articleshow/57971679.cms">1 million people</a>. 
 
The country houses over a third of liquor outlets around national and state highways, which means that this ban would result in a deep impact on the liquor industry and state governments’ pockets. 
 
Also read: <a href="http://www.businessinsider.in/Bihar-politics-ban-making-liquor-companies-suffer/articleshow/53767756.cms">Nitish Kumar wooed Carlsberg to set up a plant in Bihar, and then banned liquor in the state</a> 
 
In order to avoid this, some state administrations have even changed the nomenclature of state highways to district roads. 
 
(Image source New Indian Express)

Liquor ban would dent state governments’ estimated revenue by Rs 50,000 crore

<keyword id="1663690" type="PERSON" weightage="20" keywordseo="Harman-Sidhu">Harman Sidhu</keyword>, the man behind <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword>’s <keyword id="1789462" type="UNKNOWN" weightage="20" keywordseo="Ban-on-sale-of-liquor">ban on sale of liquor</keyword> within 500 meters of the highways in the country, might have tasted victory but apparently he is not really happy with it. 
 Despite the <keyword id="6356229" type="ORGANIZATION" weightage="20" keywordseo="apex-court">Apex Court</keyword> delivering the judgement in favour of Sidhu, who is an activist from <a href="http://www.businessinsider.in/Made-in-Chandigarh-technology-to-bring-down-prices-of-insulinand-Hepatitis-B-vaccine/articleshow/54880247.cms">Chandigarh</a>, the victory came at a personal loss; at least that’s what Sidhu, who himself enjoys drinking, feels since the ban has resulted in a majority of <keyword id="4372867" type="UNKNOWN" weightage="20" keywordseo="Chandigarh-pubs">Chandigarh pubs</keyword>, <keyword id="26248" type="UNKNOWN" weightage="20" keywordseo="bars-and-restaurants">bars and restaurants</keyword> going dry. 
 
Also read: <a href="http://www.businessinsider.in/searchresult.cms?query=highways&amp;sortorder=effectivedate">1 million people to lose job in India: Blame drunken driving for it</a> 
 
The reason, Sidhu says is a goof-up on the part of Chandigarh authorities. 
 
"Highways are supposed to be outside cities and to be used only for long drives," he explains. "But thanks to the Chandigarh authorities' goof-up, there are many highways within Chandigarh. This could well have been a world record of sorts. Now everybody, including me, will have to suffer," Sidhu told TNN. 
 
Also read: <a href="http://www.businessinsider.in/india-should-invest-in-the-future-not-bullet-trains-says-hyperloop-chairman/articleshow/57912990.cms">India should invest in the future, not bullet trains, says Hyperloop chairman</a> 
 
By highways being within Chandigarh, he hints at the many thoroughfares that the city’s municipal corporation had declared as state highways in 2006. The reason, he says, was that the corporation didn’t have the resources to maintain these stretches, and declaring them highways would simply put the responsibilities on central government. 
 
Also read: <a href="http://www.businessinsider.in/Bihar-politics-ban-making-liquor-companies-suffer/articleshow/53767756.cms">Nitish Kumar wooed Carlsberg to set up a plant in Bihar, and then banned liquor in the state</a> 
 
However, just before the Supreme Court banned the sale of liquor around highways, the authorities changed the nomenclature of these roads to major district roads, with the Punjab and Haryana high court accepting the change. However, Sidhu himself has challenged the denotification in the Supreme Court; the case would be heard on April 17 now. 
 
Also read: <a href="http://www.businessinsider.in/indias-longest-road-tunnel-to-see-the-light-of-day/articleshow/57773446.cms">India's longest road tunnel to see the light of day</a> 
 
However, this personal loss has not shaken Sidhu’s beliefs against people being allowed to drink and drive. 
 
(Image source: IndiaTimes)

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Nitish Kumar wooed Carlsberg to set up a plant in Bihar, and then banned liquor in the state

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Liquor ban would dent state governments’ estimated revenue by Rs 50,000 crore

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Good karma or bad? Man behind liquor ban can’t find liquor nearby

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