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Political

Regulatory hurdles constitute an entry barrier to the industry. The alcohol distribution structure is 65% State government controlled. Deregulation is now starting to happen which will benefit the industry in general & USL in particular-

Policy Change - De-cartelization in 2001 - State Govt has taken over the wholesale trade - Changes in the Annual tender policy Economical: Social: Technological:

Benefits - Industry has doubled - Net Realization has doubled

- Price increase

With ?% + GDP growth expected over the next few years the Industry have a bright future. High Disposable Income.

Demographics, Higher disposable income & change in spending patterns favour growth of more profitable products Changing Lifestyles Attitudes of work & Leisure Rapid urbanization - middle class already exceed 300 million

New packaging initiatives to reduce costs and curtail counterfeiting. New product developments Diet Whisky Innovative Techniques.

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