United Spirits has in a presentation to its investors in London, said that the Supreme Court ban on alcohol sales near highways will have a short-term impact on its sales.
Anand Kripalu, Chief Executive Officer of the Diageo plc-owned USL, said the company “expects the impact to be mitigated eventually and where it doesn’t get mitigated the consumption will shift to other outlets”.
Following the ban, USL shares took a 15 per cent slide but after assurance from its CEO, the shares recovered to a healthy Rs. 1,961, up nearly 3.5 per cent.
He also pointed out that while the GST may not include alcohol, there is a lot of support to make sure alcohol is not unduly hurt as a result of input costs going up.