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Liquor License, Alcohol Tax & Liquor Business Secrets in India | Mokksh Sani | FO516 Raj Shamani — Transcript

by Raj Shamani · 18,003 words · 2,949 segments · language en · Watch on YouTube

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0:02data number India and alcohol related
0:06and it will shock people the state makes
0:08about 36,000 crores from alcohol 48,000
0:12is this year was Karnataka
0:13>> we we'll get to an economics now this is
0:15interesting on every 100 rupees we give
0:17the government 78 rupees 78% goes into
0:20taxes
0:20>> mosh sani co-founder and director of
0:23living liquids and carteras ltd this
0:26episode uncovers the hidden economics of
0:28India's alcohol alcohol industry
0:30decoding taxes, licensing, luxury
0:33alcohol and government revenue
0:374,200 pay. What would be the
0:38manufacturing cost?
0:41That's what you have to keep.
0:42>> So the cost of alcohol and a bottle is
0:45200 rupees.
0:46>> Yes.
0:46>> Which gets sold at 4,200 rupees.
0:49>> Yes.
0:51>> How much does it get sold? One license
0:53in Maharashtra somebody has to buy.
0:54>> The price is about 8 to9 crores.
0:58And how do you build a brand when you
1:00can't advertise?
1:00>> I think we build it by a global story.
1:03The more your brand are seen across duty
1:06freeze across the world, that definitely
1:08builds your brands.
1:10>> So how do you get into an airport then?
1:12>> So getting into an airport is definitely
1:13your presentation, your liquid, your
1:15packaging, your pricing, your story
1:17behind the alcohol, your sales numbers.
1:19They got to be great.
1:21>> I think taking alcohol from one state
1:23and taking it to another state, isn't it
1:24illegal? Flight allows about five
1:26bottles per person.
1:27>> Which one would be the most expensive
1:29alcohol that you've ever sold?
1:30>> Glenfidic 50 years old somewhere around
1:3225 lakhs a bottle.
1:34>> Which is the oldest alcohol?
1:35>> 90 year old Macallen does for about uh 1
1:38and a2 or 2 crores.
1:41>> Do you see other competition as well?
1:43>> There is a rule that we have to be 500 m
1:45away from another liquor store. Now it's
1:46220 m. You cannot come in more than 220
1:49m close to another existing liquor
1:50store.
1:51>> Are you scared of the giants? Do they
1:52not trouble you?
2:05audio experience.
2:09Enjoy the show. [music]
2:16Tell me
2:19insight data number
2:22India and alcohol related and it will
2:24shock people.
2:32We the fifth largest
2:34country in the world in terms of alcohol
2:37consumption.
2:40Soon I think uh by 28 I mean we'll be
2:44number three by 28. So we'll probably
2:46take over China
2:48>> really
2:52consumption India is moving that way
2:55>> but isn't like when you go to let's say
2:58UK yeah
3:00Brazil for example yeah cultural tab
3:04drinking culture is just going to be
3:05coming RTDs
3:08ready to drink and ready to drink us
3:13is becoming a hit now that same culture
3:15is going to come to India. You will see
3:17a lot of afternoon
3:21you will see a lot of cultural shift but
3:23I was reading
3:28consumption per person
3:33consumption in other countries I know
3:35it's it's higher but then you it's
3:38population and secondly if you see u
3:43all the other countries are struggling
3:45in terms of uh uh jobs in terms of if
3:50you see US now is struggling or UK now
3:52is struggling with jobs there's
3:54recession it's it's as good as recession
3:58UK also
4:00you know what's happen if there's no
4:02tourist there's no nothing everything is
4:04all hotels are shut consumption is shut
4:08Indians
4:10even from US people are coming back to
4:11our country they're not giving them
4:13further renewing their or doing renewing
4:15their contract contracts or whatever
4:17whatever they want locals to work and US
4:20people to work. Ultimately India is and
4:22affluent people are also coming back no
4:24who stayed there for 10 years 15 years
4:29and India is on a growth pattern.
4:32>> We are anyways growing.
4:34>> True. But is it do you see a decline in
4:37consumption
4:39young people
4:42as a trend now? I know there is a health
4:45wave you can say as such and uh people
4:48are uh but they but the weekends belong
4:51to the genz's and I think they consume
4:54as much as alcohol on weekends than than
4:56they would do probably throughout the
4:58week as well.
4:59>> Yeah.
5:00>> So
5:03there's a myth that we are thinking the
5:05jendis are not consuming. Jandis are
5:07consuming but they are probably choosing
5:09their days and consuming. Earlier if you
5:12went to these drinking holes, these bars
5:14and you know these pubs and so you would
5:17see the crowd from Monday through
5:18Thursday.
5:19>> Now could be that crowd is reduced but
5:21if you go there on a weekend like a
5:23Friday, Saturday, you will see them as
5:24packed as ever.
5:33one of the biggest businesses in the
5:35world and generation
5:40right I'm very curious and I'm going to
5:41deep dive today
5:48to understand what the nitty-g gritties
5:50of a business is. So that is one sector
5:54and then opportunities in this to
5:58entrepreneur if they want to build it
5:59can they build it or no as well right
6:02and third is which is a larger impact on
6:07society is it wrong is it right we'll
6:09we'll get to that part as well
6:13but
6:16it was difficult to sit with people
6:19non-alcoholic
6:21I have seen trends amongst my friends
6:24and places that I go health conscious
6:28matcha coffee raves
6:31on Saturday night Saturday night Sunday
6:33morning [laughter]
6:35Sunday morning but
6:39is it and global daties alcohol
6:43consumption per person is reducing is
6:45that true do you see that in your data
6:48>> I'm I'm saying global companies India
6:51personally Okay.
6:52>> Because global companies were already
6:54now when you say per capita
6:56>> people who are drinking
7:03global companies maximize
7:06>> they've reached the maximum limits
7:13and they are thinking this is a reason
7:14of decline is what how I look at it. But
7:20like for example I'm a new startup
7:22>> so for us when we started we were say at
7:2610
7:27>> today if we are at 100 crores I'm
7:29growing at a,000x
7:32but another company of mine will not be
7:34growing at th000x because
7:37maturity point reach max max out so he
7:41will only grow at 5% 7%.
7:43>> Wherein I'm growing at 100% or th000%.
7:45So that's the kind of uh ratio I take it
7:48as.
7:49>> Got it. So it's like India is a booming
7:51market.
7:51>> India is booming 100%.
7:53>> Indian alcohol business is moving.
7:54>> Indian alcohol business even even pe
7:57even uh multinationals are looking at
7:59India. All the multinationals are are
8:01are eyeing India for their sales.
8:04>> Uh you see the car industry or you see
8:06automo industry. They they want uh
8:08India. They all eyeing India.
8:10>> When did you start this business?
8:12>> So this actually is my father's
8:14business.
8:15Uh dad started back in 1973.
8:21>> I felt that
8:34improvement
8:39and I was always inclined towards
8:41marketing towards
8:43uh brand building. I always wanted to do
8:45something different
8:48or
8:51how old were you? I
8:53>> was 22.
8:54>> Okay.
8:59type shops type shops problem.
9:02>> Okay. Was it shame like was a part
9:04>> but it was we were looked down.
9:07[clears throat] I cannot think that we
9:08were looked upon.
9:37It's not something that you're looked
9:39upon at. Okay. So, you're not respected
9:54ladies.
9:58uh
10:00because of the crowd, because of the
10:01people, shop size, jail [clears throat]
10:04very uh so it was not something very
10:07cultural that probably our culture also
10:10was different.
10:16You know, you get a tap on your back and
10:18say, "Oh, we've done a good job." Okay?
10:20When you open a good restaurant, you
10:22open a good bar, you get a you get a pat
10:24on your back and say, you know, well
10:25done.
10:26>> So you're not looked aspirational.
10:27You're not respectful enough.
10:32Nothing like that.
10:33>> Nothing like that.
10:34>> So that something you were missing.
10:36>> That was missing. And I thought
10:48almost 10,000 ft restaurant
10:51Phoenixel
10:54uh for some reasons I I ran it till 2004
10:592004 2005 I think. So I ran it.
11:01>> What restaurant?
11:02>> Uh one was an Italian restaurant called
11:04Monza. One was a bar called Aziano. It
11:06was a nightclub and one was a panician
11:09restaurant called Lemon Leafy Italian
11:11restaurant.
11:14The whole idea was that
11:19wine list because Italians wine goes
11:22very well paired with Italian food. So
11:24there's a course in UK
11:26>> where you can study wine as a subject.
11:28Okay. Uh it can be as good as a
11:30three-year course. Uh it's a diploma,
11:33it's a degree, whatever you want to
11:34choose. and u
11:39foundation India maybe link here where
11:42you can
11:42>> go apply
11:43>> you can apply and you can uh do a crash
11:45course for a day uh w set 1 and w set 2
11:48you can do for as good as in three four
11:513 to 4 days
11:52>> okay
11:52>> uh beyond that then it is obviously
11:54theoretical and practical and you've got
11:56to give time to it it's a 6 months
11:58course and everything else
11:59>> and so forth so on so you can go up to
12:01fifth level which is a similar set level
12:04which is which is a very very high-end
12:06level. I don't think in India we have
12:07more than one or two people who've done
12:09that. So it's a very uh I'm talking
12:12about the fifth level.
12:12>> Yeah.
12:13>> Uh one and two.
12:18>> So you did that?
12:18>> I did that. So obviously my interest in
12:21wines grew and
12:24wine is a living object. From there the
12:26name came living liquids because wine
12:29was living
12:34with your body temperature also if you
12:36hold a bottle of wine for at least half
12:37an hour to 45 minutes the liquid inside
12:40can start changing the taste inside can
12:42start changing
12:45>> okay
12:46>> you've got to keep it in a cool ambience
12:48it has to be temperature controlled and
12:50stuff so
12:53I said uh wine menu.
13:00What's aanti? What's a shas? What's a
13:02ros? What's this? What's that? M.
13:06So I said, uh,
13:09why not dedicate a space for a seller
13:12where we'll create a small wine seller
13:14where we stack the wines. We
13:29with meat. These are the wines go with
13:31non veg food. These wines go with pastas
13:33these wine go.
13:39And
13:41we had a cool box where you could chill
13:44the wine in about 5 seconds to 0°. So we
13:48had that machine and we would serve the
13:51wine chilled to the gentleman whoever
13:53whatever the customer wanted to drink.
13:57I think for that seller restaurant
14:00I was most liked for that seller.
14:03>> Okay.
14:04>> Restaurant was doing fine
14:05>> but the most talked
14:07uh you can say uh section of the
14:11restaurant was a seller.
14:12>> Okay. And uh that's when I thought then
14:16that that was going on fine. When uh the
14:20builder asked us to vacate the place I
14:22had a 9-year lease but in 3 years he
14:24asked me to leave because he had to
14:26develop his mall
14:27>> and obstruction and he had to break that
14:31space.
14:32>> So he the builder said you will have to
14:33leave whatever financials he covered our
14:37finances and he asked us to leave. I had
14:40to shut shop. Though I was doing well
14:42but I had to shut shop.
14:47I said I only took away the seller from
14:49me
14:49>> because
14:55was like one year
14:57>> away. Soon I went home back. I didn't
15:00have another place. I didn't have a
15:02business. I had nothing to do. I was
15:03already 24 years old. I and I had that
15:08thing that I have was now I can't sit at
15:10home. So I went back to my father and I
15:13said uh you know what uh
15:16I think I want to start living liquids
15:18by itself
15:21only selling wines in a locality where I
15:24can you know where I can start small
15:28but uh let me prove myself if this
15:30concept can work in lower parel
15:32>> this concept can work anywhere. Okay,
15:34>> people are fond of wine
15:42and I made it a living only wines.
15:45>> The only difference that was there was
15:46it was hygienically clean. It was airond
15:49conditioned. There were women shoppers
15:51because it was a supermarket and
15:53>> but supermarket of Bishna was easy.
15:55>> Uh there was a special license that the
15:57government had removed that time. In
15:592004, there was a special wine license,
16:01wine and beer license which had been
16:03issued by the government. Okay. Saying
16:04that you can open in supermarkets, you
16:06can open in airports, you can open
16:08wherever
16:10>> supermarket just say alcohol b sector
16:12only wine and beer.
16:13>> Only wine and beer.
16:14>> This is 2004.
16:16>> This is 2004. They had a special license
16:18granted.
16:18>> You could open even standalone but you
16:20can also open in malls and supermarkets.
16:22>> Okay.
16:23>> So
16:25that was my first store that we started
16:27in back in 2004.
16:29And obviously I was appreciated and
16:34there were women that were shopping and
16:39it was a shocker that
16:42it was surprising for us as well
16:48because selection learnings I had from
16:51Monza.
16:55What taste varietals? We had few of my
16:57team members of the restaurant I had
16:59taken there who were som. We had a som
17:02inside the restaurant.
17:14And uh that was my beginning of living
17:17liquids.
17:17>> But then why would you do it in Malad
17:20and not in let's say lower parail
17:22>> because uh I didn't know if the concept
17:25would really work at a standalone level
17:28restaurant anyways we had a foot
17:31>> customers were used to either sending
17:33their drivers to a liquor store or the
17:35normal crowd used to buy from a liquor
17:37store
17:39experiment.
17:41There was something that I was also
17:42looking at financially that it should
17:44not be
17:48with a shopping advantage
17:53AC
17:54light.
18:01I think in orbit was the first mall.
18:03>> Interesting. And was it a concept that a
18:06supermarket would appreciate at that
18:09time? That was a high risk. That's the
18:13reason they were also skeptical because
18:15they were very skeptical about it.
18:17That's why
18:36compliment compliments each other. Okay.
18:38So I said okay put me in the give me the
18:40meat section because
18:44>> interesting
18:45>> that's how we started that.
18:47>> So that's the first place that you
18:49started and it worked and local for
18:52example local wine shop localaf
18:57they didn't disturb you. No, there was
18:59no local.
19:08>> It's very fair and square.
19:09>> It's very fair and square.
19:12>> But it's it's looked like that.
19:13>> Maharashtra is somehow much better that
19:16way. one of one of the cleanest states
19:17to work in
19:19>> in terms of there must be some some
19:22areas
19:24areas but uh I have still not come
19:27across anything in Maharashtra as such.
19:29So once you opened this okay this was
19:332002 how much investment did you 2004
19:36>> 2004
19:37>> how much investment did you put in
19:40interiors and license
19:56I think rent was about
20:04I don't I don't remember the figures but
20:05I think 20 lakhs
20:10I think I had that money with me
20:13>> to experiment.
20:15>> Okay. So one then you started and did
20:18you see any difference because you said
20:211970s
20:23father wine shop
20:25women would look at you in a different
20:27way and the women
20:32etc etc today I was reading a stat that
20:3560% of cocktails in bars are ordered by
20:39women 40% of beers are ordered by women
20:42so public shame has gone away what has
20:44changed in these last 40 50 years
20:48>> education
20:50people are well traveled
20:52>> uh kids are going all over the world to
20:55study people are coming back to India
20:57our travel if you travel UAE travel
21:00Singapore travel wherever you any part
21:02of the country any part of the world
21:04obviously the culture is different and
21:06we've we always uh copy the west
21:09>> okay
21:09>> so I think a lot of that has helped
21:11there is no more public shame at all in
21:13alcohol there's no more taboo in
21:15alcohol. There's no more.
21:19I think uh today alcohol is not looked
21:23at uh a
21:26uh you know it's a necessity more than a
21:30it's become a necessity I think more
21:31than a luxury drink or
21:34>> necessity is such a bad word to use for
21:37>> I think it's become a because social
21:38necessity
21:39>> it's become a lifestyle probably but not
21:41necessity
21:42>> I think it's it's
21:51What can you do? You will end up going
21:53in a restaurant. Which restaurant does
21:55not serve alcohol? You end up going at a
21:57bar.
22:00What what do you do? So I think uh
22:06so I think uh it is and I think weekend
22:11social drinking has become is is
22:14acceptable. Huh it is but is is it
22:17something that you have seen
22:18specifically
22:21timeline year or some phenomena that was
22:24a pivotal point in Indian context slowly
22:28gradually
22:29>> slowly gradually but I think
22:36at least in Bombay in Maharashtra living
22:38liquids has played a largely a very good
22:41role in uh women coming and shopping in
22:44alcohol.
22:45So I think I'm very proud of that today
22:47that uh due to the cultural change also
22:50we built stores in time for people uh
22:55people could come
22:57>> you know and shop and uh so we our our
23:0260% uh clientele was women even at
23:05Spencer's that time
23:07>> in in 2004 five
23:09>> in 2004 five yes because women would
23:12come to Spencer to shop
23:13>> ah to end up our 60% clientele was women
23:16who were shopping
23:18>> and they I think we probably they they
23:21started from there that was probably the
23:22starting point as well
23:25>> and they were enjoying it because it's
23:27like something newness for them
23:29>> and then how would you market it?
23:35I don't think uh I think Facebook
23:39I'm not too sure Facebook
23:42so uh definitely
23:46opening we were using data of Spencers
23:49SMS
23:50and uh you know that there's a liquor
23:52store there's a wine boutique opened
23:55wine boutique
23:57SMS
24:03okay
24:03>> so I mean we did whatever we could you
24:05know whatever little bit we could we we
24:08did so I had a stats that time wine that
24:11time was I think of a liquor store was a
24:160.3% sale
24:19>> negligible
24:20>> negligible in a liquor store
24:22>> okay
24:22>> so if I'm just giving hypothetical
24:24number
24:31okay
24:31>> so it was 0.3% %
24:37boutique
24:39was doing equivalent to 15%.
24:49I'm just putting the numbers as examples
24:51to I was actually 15% of a liquor store.
24:55So I was trying to gauge myself that
25:000.3%
25:03and that was that because I was
25:05different in the entire area because of
25:10uh
25:12old wine shop turn into an like a better
25:16store it went up to 15%.
25:18>> Yes.
25:20>> Which was 0.3.
25:23So even my parents were surprised, my
25:25brother was surprised and everyone was
25:26like okay now it's being that means this
25:29is a welcoming culture and people want
25:32to shop, people want to come but they
25:34didn't have this opportunity where they
25:35could actually come touch and feel
25:38because what we did is we started
25:40creating the same walk-in store on the
25:42street
25:43>> wherein people could enter inside,
25:46>> touch and feel that alcohol, choose
25:48their wines, choose their alcohol,
25:49choose their spirits. Okay.
25:52>> Which till yesterday they had to stand
25:54outside the counter and just point out
25:56the bottler.
26:08So there was no fun
26:10>> you know the fun element of alcohol was
26:12missing. That's what I I think in early
26:15days I I got on that. Uh
26:17>> okay. So then one store, one store you
26:21change and then storees
26:27because I was the only walk-in air
26:29condition store in the entire area.
26:31So neighboring
26:36different store
26:39people didn't understand
26:43people started treating us like a
26:44McDonald's. like people started treating
26:46us like a brand
26:48>> and usually wine shops would have you
26:50know pinky ponyy wines and whatever they
26:52would have names as such
26:54>> like
26:59you know and that's how it was. So
27:04that was usually the name and uh when
27:06they read living liquids and a nice
27:08fancy board. So people were attracted to
27:11that. We want to go and see what is
27:12inside
27:13>> because
27:16there was a glass door. It's air
27:17conditioned walk-in. There's a nice
27:19facade. There's a nice clean facade.
27:21There's
27:23>> Would you not lose out on customers? So
27:26we had a uh we had a thought later on we
27:30would have lost on some customers
27:32thinking that it's an expensive store.
27:35>> Exactly.
27:36>> And uh that learning we got in early
27:38times I think in the first one year only
27:41we understood that we've lost on certain
27:42numbers basically customer
27:54because
28:03fast moving missing. So I think in early
28:07days we understood that and we corrected
28:09ourselves and we started making
28:13counters outside.
28:15So we started creating and so counter
28:18start
28:19>> open counter same like that but just
28:22that it would be in a smaller way
28:25>> it's not blocking the store
28:30we we came up with that so to cater to
28:33that crowd we had that counter and to
28:36walk in we had so in fact it was better
28:39so
28:39>> crowd srow and both crowds were not
28:42mixing with each other
28:47So both crowds are not mixing. The
28:49customers were also happy.
29:05on customers thinking where everybody
29:07would be like
29:10but over a period of time people
29:12understood the prices were same
29:14>> the prices were same I mean not more
29:18than 2 months and people understood
29:19because it's it's you know
29:23and was same price and everything's good
29:26they're giving bags also they're giving
29:28branded bags they're giving everything I
29:29mean you know we started creating
29:31everything around it so
29:33>> and why would Not a competitor do it.
29:36>> A competitor would not do it. Now people
29:38are doing it. That time the vision
29:42everyone was trying to see is
29:45>> you know wait and watch.
29:47>> So I think good 10 years I had no
29:50competition for sure.
29:51>> Nice for good 10 years.
29:53>> So nobody believed that
29:55>> nobody believed.
29:57>> Did you speak to other industry
29:58partners? No, I honestly didn't speak
30:01but the fact I know is that no one
30:02opened. So I understood no one believes.
30:04[laughter] So that was a good uh answer
30:07for me. I mean when I wanted to even
30:09back in 2009
30:12when I wanted to open my first airport
30:13store in Mumbai at T1 Mumbai I remember
30:18that's the time when I spoke to
30:20companies not competitors but companies
30:23brands
30:24>> uh you know someone like that I need
30:27support I need to open because the
30:29rentals are really high and it's an
30:31experiment
30:33my dad and I said I want to open a store
30:35at the airport and uh obviously then it
30:41was expensive in terms of rental that's
30:44the only thing that's the only reason
30:45why we were discussing and otherwise
30:47there was no reason to discuss because
30:48by 2009 I had proved myself
30:51>> I had converted all my 20 stores into
30:53living liquids and few more I had opened
30:56so I had proved myself but when it came
30:57to the airport again uh there was a
31:00thought
31:01expensive rental
31:03>> the rental itself was about Uh I think
31:0710 lakhs a month for a
31:11500 ft².
31:12>> Wow.
31:13>> Which
31:15may have been outside
31:1850,000 to 75,000 a month. [snorts]
31:21>> So it was that expensive
31:24>> and it was the maths was not fitting at
31:27all. It was not fitting at all and it
31:28was a gamble. It was a complete gamble
31:31>> but gamble airport then
31:34>> because you saw other countries were
31:35selling
31:36>> other countries were selling I I don't
31:38know why I had that belief I don't know
31:40why I had that confidence that this will
31:43work because customers
31:49>> he is coming either you're a tourist if
31:52you're at the airport and you're
31:54checking in a hotel or you're going back
31:56home. So either which way
32:03you will miss going to the liquor store.
32:06So if I'm giving you convenience of grab
32:08and go, I don't think that should be
32:11because consumer
32:13t1 t
32:19of walk-ins and enough of traffic. So
32:21traffic tension
32:24to think we somehow said let's do it.
32:27Let's let's try.
32:28>> And it worked.
32:29>> And it worked. It worked. Brilliant.
32:31>> What? Okay. So now explain me math.
32:35When if you were doing 100 rupees in a
32:37wine shop, living
32:40retail
32:42double
32:43>> same shop, same area.
32:48Wow.
32:48>> I'm talking top line. Uh-huh. Top line.
32:50Yes. And profits would reduce.
32:53>> Profits were reduced. But uh profits
32:59Okay.
33:00>> But but so but we had so we today also
33:04living liquids uh drives 35 to 40% of
33:08the premium sale in Maharashtra.
33:11>> So because we have the consumers that no
33:14one else has today also.
33:16>> So that affluent customer
33:17>> so that affluent customer was coming to
33:19us. So our top line was always higher
33:21and margins are always higher on on more
33:23expensive brands. So
33:27that way our scotch sale, our high-end
33:30wine sale is very different from other
33:32stores.
33:33>> But then the norm like you said if you
33:37were selling 100 rupees and then let's
33:39say you were making X profit, how much
33:41profit percentage would be would there
33:43be?
33:44>> Total business drives about 12%.
33:46>> Okay. So 100 12% 100
33:5112%. So you're saying 200%
33:546%
33:56200%
33:58if not six it would become 8%.
34:00>> Okay. And why would those that
34:02>> because you're running an air
34:03conditioned store a
34:05>> you're obviously keeping expensive
34:06staff.
34:07>> You're keeping well-trained somulators
34:09expensive English speaking staff. You're
34:11not keeping anything like that. You're
34:13providing uniforms. You're giving them
34:16>> you're u giving them packing material.
34:18You're giving them expensive means
34:20decently.
34:36Got it.
34:37>> So that's how
34:39>> obviously your profit was going down.
34:41>> You were you were accepting credit
34:42cards. Credit card. I remember I was the
34:44first we were the first people to accept
34:45credit cards in a wine shop. uh banks
34:48were not giving credit cards in back in
34:492005.
34:51>> They didn't want to give because they
34:52said underage
34:55credit card
34:57and uh to I remember living liquor was
35:01the first first liquor chain which got
35:05which started using credit card
35:07>> and how did you convince a bank?
35:08>> I had some relations because of the
35:10restaurant
35:12because they they had we had machines at
35:14the restaurant. So those relations
35:16relations
35:18>> and uh they started and they believed in
35:22me somehow and they said okay we'll do a
35:23trial with two stores or one store and
35:26then there was no looking back because
35:29they had that doubt that people would
35:31say shop you know how people are like
35:34what if they claim back and they say
35:36we've not we've not bought
35:38>> because they had no experience of liquor
35:40guys uh how they would react or how they
35:45would uh be so different in
35:47>> and would still be seen as a trade which
35:49is you don't know whether you can trust
35:51it fully or not.
35:52>> Yeah, completely.
35:54>> So but then overall profit would
35:57increase because 200 topline 6 8%. Okay.
36:01So that so then your entire family and
36:03you were happy 20 stores you were
36:05running.
36:06>> Okay. And then did you expanded into
36:09other states as well? We then expanded
36:11then we slowly slowly went to first city
36:14we went to Pune we went to Goa we went
36:18to Orisa I just have one store in Orisa
36:21at the airport
36:22>> uh went to Bangalore
36:25>> today we are there in five five states
36:27>> and everywhere it's profitable
36:29>> everywhere it's profitable
36:32>> it's like you've seen low traffic low
36:34profitable
36:34>> low traffic I have seen in Karnataka
36:36because Karnataka somehow is the most
36:38expensive state in India
36:40uh to shop alcohol. So the same bottle
36:45I'll give an example of Glenwalk.
36:47>> Our same bottle which is at uh 1,700 in
36:50Mumbai is for 3,200 in Karnataka.
36:53>> Why?
36:54>> Taxes, government taxes. So you'll be
36:58surprised uh on every bottle on every
37:02100 rupees we give the government 78
37:05rupees.
37:07every 100 rupees
37:08>> 78 rupees. So 78% goes into taxes
37:12>> and this is across India.
37:14>> This is across more or less across
37:16India. Yes.
37:17>> 78 rupees tax.
37:19>> Yes.
37:20>> We we'll get to the economics now. This
37:22is interesting. [laughter]
37:24But give me a most popular
37:28most popular brand or alcohol bottle
37:31which would be sold all across India.
37:34Obviously
37:36the economy section that is McDall
37:38number one.
37:38>> Okay.
37:39>> Imperial blue Mcdall number one.
37:41>> And what is that my
37:42>> that's a whiskey which is a which is the
37:44entry level whiskey.
37:46>> Uh
37:46>> at what price?
37:48>> At uh in Maharashtra now at 250 earlier
37:53was 150 170 rupees.
37:55>> Okay.
37:56>> A quarter.
37:57>> Mhm. And what's in the brand in the
37:59international brands which one is the
38:00most
38:02>> most loved is obviously black label. How
38:04much would be the price would be here
38:05>> today? The price in Maharashtra is
38:074,200.
38:08>> And in Karnataka?
38:10>> 6,500.
38:12>> And which is the cheapest state?
38:15>> Cheapest state would be Chandigar.
38:17>> What would be the price there?
38:20>> Black Label would be at Hana and
38:23Chandigar. I think so. Chandigar is
38:25cheaper than Hana, but I presume it's
38:281,800. That 1,800 a bottle in Chandigar
38:33or Hana would be about 4,200 here and
38:37would be 6500 in Karnataka.
38:40>> But consumption in consumption of
38:42alcohol in south is significantly high.
38:44>> Beer
38:46>> overall alcohol also would be high.
38:47>> Even alcohol is high. So pubs if you see
38:50the IT sector in in south is more
38:52booming.
38:53>> Karnataka, Hyderabad, Telangana all have
38:56good IT. you know all your big offices,
38:58Google and stuff and everything. So all
39:00is working over there. So there the
39:01culture in fact when you go in the on
39:03even on a weekday you will see all the
39:05pubs and bars full
39:07>> because they're uh mostly their
39:10bachelors.
39:11>> Yeah.
39:11>> And uh then that's
39:14>> drinking culture is wide.
39:15>> That's exactly there are there are pubs
39:17over there which are one lakh square ft.
39:20There are some breweries which have
39:21opened which are 50,000 to one lakh
39:23square ft. I mean we can't even imagine
39:25to open that kind of size in Maharashtra
39:28because obviously land is cheaper
39:29everything's cheaper there but but still
39:31>> but alcohol is expensive so my
39:33>> but alcohol is expensive
39:35>> see what's fascinating is if you have
39:37more expensive alcohol government put
39:39more taxes the consumption is higher
39:43is there some correlation or because or
39:45is it like because the consumption is
39:46higher government is making more taxes
39:48like what is
39:50because why would government put more
39:52taxes
39:53because they want to make more money or
39:56they want to reduce the consumption of
39:57>> no they want to make more money
39:59>> for sure
40:00>> they don't want to reduce the uh
40:03consumption or they don't want to reduce
40:04anything that that that's not true
40:07but but now no they have uh in fact they
40:12reduced it twice since I have been in
40:14Karnataka I've been in Karnataka now
40:16since 7 years and during my 7 years so
40:20when I entered you'll be surprised the
40:22bottle was per 7 1/2,000 black label.
40:24>> So I have seen the jump from 7 1/2 to
40:276,000 and now I believe uh the next it's
40:31in fact then in the next 10 days it's
40:32going to be reduced. Uh it is coming
40:35down to around 5,000.
40:38>> That's significant down. Why
40:40>> significant down? Because they've
40:41realized that people are now buying from
40:43different states. So though uh bar
40:47consumption cannot drop because that's
40:49something that you're in a bar and if
40:51you're used to going to a bar you're
40:52going to drink there but home
40:53consumption is dropping. So the
40:55travelers who are traveling to Punjab,
40:57Chandigar, Bombay,
40:59>> Goa, they're buying from there and
41:01bringing in the flight.
41:03>> But tell me is isn't it
41:05>> if you see living locus is only there in
41:07Bombay.
41:07>> We have a store in Bombay. We have a
41:09store in Goa.
41:10>> Today Goa my sales are lovely at the
41:13airport. So everyone at the because Goa
41:15is again cheap.
41:16>> So people are buying at the at the
41:18airport and traveling to Karnataka or
41:20traveling to Mumbai also or traveling
41:22wherever.
41:23>> What was the difference between Goa
41:25price of a bottle versus in Bombay?
41:27>> Goa black label is about 3,300.
41:29>> It's still much cheaper.
41:30>> It's still cheaper. H and tell me I was
41:35it's interesting the kind of things that
41:38you are doing which is very fascinating
41:42and I'm I'm having like 50 question at
41:45the same time and I don't even know why
41:47[laughter]
41:49but the
41:51isn't
41:53I think taking alcohol from one state
41:55and taking it to another state isn't it
41:56illegal
41:58>> no in permissible limits it's okay
42:00you're not you're not carrying more two
42:01bottles that's fine.
42:02>> Okay. So you can you can have two
42:05bottles and you can not
42:07>> so if if there are more then that's a
42:09problem.
42:09>> It's more for home consumption. It's not
42:10for for selling or something. It's a
42:12personal drinking home consumption. So I
42:14think it's
42:14>> but somebody can argue that their
42:16consumption is XYZ and versus somebody
42:18else's. So that is not allowed.
42:20>> No. No. So like you can go and be like
42:23hey you drink let's say 10 bottles and
42:25somebody else drinks two
42:40>> flight will not allow you flight allows
42:42about five bottles I believe
42:44>> per person
42:45>> per person
42:46>> that that two in your main bag I'm not
42:48because
42:49>> no we seal the bags anyways It's like
42:51duty-free. We give you the sealed bags
42:53and you can carry in the hand also.
42:55>> So in the hand you can carry
42:57>> five bottles.
42:58>> Five bottles. [snorts] So it'll be like
42:595 L. There's no limit of 50 ml, 100 ml
43:02that no liquid
43:03>> because we are sealing the bags.
43:06>> But that can be opened. No, isn't it
43:08like a security hazard then?
43:10>> It's not a sec. We we we have stores in
43:13Bombay. We have before check in also.
43:16>> So security checks. So once we seal the
43:20bag it's it can be open but it can't
43:22once opened then it cannot be sealed
43:24again.
43:24>> Explain me every state now because her
43:27state.
43:33So explain me different states and break
43:36down like
43:39like things for me. Maharashtra business
43:46I think Maharashtra Goa Karnataka
43:50all three states have a similar policy
43:52taxation is different tax different
43:55>> but you can apply for a license uh in
43:59Goa also you have to buy a license you
44:02can't apply for a license sorry you
44:04cannot apply for a license you have to
44:05buy a license from an existing
44:07>> in Goa
44:08>> in Goa and in Karnataka and in
44:10Maharashtra So the government doesn't
44:12issue new licenses.
44:13>> Okay. 1978
44:19existing there are 1,700 licenses in
44:21Maharashtra.
44:22>> I can buy
44:23>> from you. For example, you own one
44:25license. I can buy it from you or I own
44:27I want to give up one license. You can
44:29buy it from me.
44:30>> Okay.
44:30>> That's how you can transfer the name and
44:32buy it officially. Official government
44:35name transfer. And uh
44:38>> how much does it get sold for one
44:39license in Maharashtra? Somebody has to
44:41buy.
44:42>> Now it the price is about uh
44:44[clears throat] 9 8 to 9 crores.
44:46>> 8 to 9 crores for one
44:48>> for one license and license.
44:54Are there some rules or something?
44:58shop.
45:00In fact, they have put a number on the
45:02square of the stored
45:05license.
45:09It cost you about 9 crores and
45:12youally
45:19okay. It's not like you give certain
45:21amount now. It is between the buyer and
45:24seller.
45:24>> Okay.
45:24>> The price is determined between the
45:26buyer and government. Basically,
45:34which is about the legal
45:46750
45:47>> 750 ft²
45:49>> and if you have to open a store like
45:51yours
45:52>> so our maximum stores are 750 ft²
45:55>> uh then we have a bigger format called
45:58mansions obviously mansions is something
46:00which officially government has says you
46:02can apply for it you pay three times the
46:04license fee and you can apply for a and
46:06you can apply for a bigger square ft
46:07where you can open up to 5,000 ft² if
46:10you want to open above five or above
46:126,000 ft if you want to open that comes
46:15comes in a different category and you
46:17have to pay five times the fees for
46:19that. So there is three times the fees
46:21for up to five 6,000 ft and 6,100 or
46:246,0001 onwards there's another license
46:26over five times the fees.
46:28>> Do you have a bigger store? Which one's
46:30your biggest store?
46:30>> 5,000. So mansions is about
46:33>> so 2730 crores you would pay for one
46:35>> not cr. The license fee I'm talking
46:37about this is a yearly license fee. So
46:39two three times the license fee means
46:41about 18 into three is about 56 lakhs.
46:46>> Okay. So that's that's just the license
46:48fee.
46:49>> That's the license fee. That's
46:50>> 9 cr you would buy.
46:52>> I would buy the license for. So that
46:54license gets converted into an elite
46:55license. It's called an elite license.
46:57>> So you convert the FL2 into an elite.
46:59The only difference in an elite is that
47:02uh you get to open for 1 hour more
47:06>> than the regular timing
47:08>> and you can open a 5,999
47:12ft² car store.
47:13>> And what is the regular timing?
47:15>> 10:30
47:16>> from morning to
47:18>> from 10:30 to 10:30.
47:19>> Okay,
47:20>> that is from 10:30 to 11:30.
47:21>> Okay, so now so that's so you buy a
47:24license then you can take it anywhere.
47:26So that's one. Second is once you have a
47:28license in one store let's say you are
47:30Malard store for example right you would
47:34only supply it to the restaurants and
47:37bars in area or
47:38>> no no the distribution is the so there
47:42is in our business uh we mainly have
47:46three licenses
47:48>> three different licenses three different
47:49businesses you can say FL1 which is a
47:51distributor license
47:54FL2 which is a retail license and FL3
47:56which is a bar license.
47:57>> Okay.
47:58>> So all these three are different and a
48:01bar and a retailer have to buy from the
48:04distributor.
48:05>> Okay.
48:05>> So the distributor is common in
48:08Maharashtra we have numerous
48:09distributors for every brand.
48:12>> H
48:12>> so we can buy from the distributor. The
48:14companies appoint these distributors and
48:17supply them.
48:17>> Got it. Can you buy directly from the
48:20company?
48:20>> No.
48:21>> Why?
48:22>> It's a chain. It's company is only
48:24supposed to so the company basically
48:26either manufacture
48:30factory manufacture
48:34>> but like someone like Bu like you're as
48:36good as now
48:38>> 75 stores
48:39>> 75 stores so you're as big as
48:42distributor probably bigger than a lot
48:43of distributors so would you
48:45>> I'm a retailer so you can't call me a
48:47distributor I am a distributor also but
48:49I have a distribution network but that's
48:51separate from living liquids M
48:52>> under the living goods umbrella but
48:54where my living goods retail stores are
48:56concerned they you can't call them as
48:58>> I'm not calling them I'm saying just
49:00because your uh what do I say your
49:04purchase would be so high companies
49:06would want to build relationships with
49:08you and they can't you buy at a better
49:10price and be like hey I don't want to
49:11pay a distributor commission why don't
49:13you give me directly because 75 stores
49:15is a big
49:16>> I can negotiate the commission
49:19>> because
49:20>> you can't bypass
49:20>> but I can't bypass And why is that like
49:23why would companies not do you do it
49:25directly? Is there a regulation problem?
49:26>> Yeah, there is a regulation problem.
49:27They cannot supply the their license
49:29only can supply to a
49:31>> uh to a FL1 trade.
49:34>> They cannot supply. There's a regulation
49:36issue.
49:37>> So I come from FMCG and in FMCG this is
49:40what happens. Companies they have
49:42distributors C and F area wise. So they
49:45have state wise and then city wise and
49:47then inside cities they have multiple
49:49beats they have divided. Right? But if
49:51there is like a big supermarket like for
49:53example demart demart would go to
49:56directly like a lot of companies and buy
49:58nationally instead of so I'm trying to
50:01understand
50:02>> there is no regulation this is this is
50:04governed by excise
50:05>> we are completely governed by excise
50:07department in every
50:08>> government
50:10and it is state wise it's not central
50:12body this is every excise of every state
50:15is different but the rule is one no one
50:18allows direct company to supply a retail
50:22or the restaurant
50:24>> and a regulation. Is there a reason?
50:26>> Because they want to track uh also the
50:30paperwork. They want to track the
50:32quantity. They want to track the number
50:34of bottles you bought.
50:35>> Why?
50:35>> They want to track because that much of
50:37tax you'll be paying.
50:39We still come under VAT. We don't come
50:41on GST.
50:43So,
50:45so they need to track all of that. But
50:48that's almost every
50:59her. It's not just this every I'm sure
51:02someone somewhere is selling a mic also
51:04in up or down a plus or minus. So
51:08tracking is not a reason, right? Or is
51:10it like because it's a high revenue,
51:11high quality, high margin thing go.
51:14There's a lot of checks and balances, a
51:15lot of control because today with
51:18illegal alcohol,
51:19>> a lot of things can happen. With with an
51:21illegal mic, nothing can really go
51:22wrong.
51:23>> Fair.
51:24>> But with an illegal alcohol, a lot of
51:25things can go wrong. It can be a
51:27life-threatening thing also. So, I think
51:29that's the reason checks and balances
51:30are very important in our industry. And
51:32I think it's worked for the longest of
51:34period.
51:34>> You think it's good to have that? It's
51:36good to have that
51:38>> because
51:40so I I'm not able to understand and I it
51:42might sound stupid and dumb because I'm
51:45trying to compare an apple to something
51:48very different. So my point is
51:50>> see I'll tell you where it is.
51:51>> Coca-Cola. Exactly.
51:52>> I'll tell you what it is because though
51:54I may have 75 stores
51:56>> but my store size is small.
51:59>> So if the factory has to remove a
52:00truckload, it cannot supply a truckload
52:03to me. It will have to then drop and
52:06deliver. It will have to drop and
52:08deliver at my 75 locations which they
52:11are not used to doing. They will then
52:12rather drop it at one location and that
52:14distributor
52:17such they would have 20 distributors to
52:19service me.
52:20>> Got it. I I understand that game. I was
52:22like but you're such a big buyer. You
52:25would you can have a warehouse by
52:26yourself and do
52:27>> that's one thing I can have. I can have
52:29my centralized warehouse.
52:30>> But again, brands don't like to give all
52:34the powers in your hand. That's also a
52:37brand's uh
52:39>> you know, they they like they want their
52:41distributors to make money.
52:43>> They want their distributors to exist
52:45because it's not about 75 stores. It's
52:48all about 1,700 stores.
52:51>> So, they want those uh you know, the
52:54distributors to make money as well.
52:56>> Let's let's explain the economics. key
52:59if there's one alcohol bottle which is
53:04let's say 5,000 rupees.
53:06>> Okay.
53:07>> And then how where does the every man
53:10like every rupee goes? So what would be
53:12the appro
53:154,200? Okay
53:17bottle
53:197 75 to 78% tax.
53:24That's like all money gone [snorts]
53:27about distributor
53:30about 5 12% to 7 and a half% depends on
53:33your distributor distributor between 5
53:351/2 to 7 1/2% distributor
53:38>> there's a 9% retailer margin
53:42>> the balance is all between COG and as I
53:45said marketing
53:49cariban uh
53:565%.
53:57>> Okay.
54:00>> That's what it is there manufactur
54:03manufacturer
54:04manufacturing cost.
54:08So that's what you have to keep.
54:10>> So five 4,200 pay what would be the
54:13manufacturing cost if you had to give
54:14another because see black label is now
54:16made in Scotland. So even if black
54:20label's cost of say over here would be
54:24about
54:29I think 400 or 500 rupees would be the
54:32cost of the bottle
54:34>> with their profits. I don't know what
54:37the cost is could be 100 rupees is the
54:39cost but price
54:42will not be more than 450 to 500
54:47and a retailer retailer would make how
54:49much 9%
54:51so retail
54:55okay and bottle
54:58is also
55:02not a big
55:05so I'm just assuming think that they're
55:06nice and they're spending that money not
55:08keeping it themselves. Okay. So
55:12per product retailer makes 400 rupees
55:16420 rupees
55:17>> and the
55:20government makes about 4,000
55:22>> and the manufacturer.
55:30So the cost of alcohol and a bottle is
55:33200 rupees.
55:34>> Yes. which gets sold at 4,200 rupee.
55:40>> So why is it look like that you guys
55:42because you're selling it, you make
55:44tons of money?
55:45>> Because we are at the last point.
55:47[laughter]
55:47We are the guys who are taking the money
55:49from you. So you're you're swiping your
55:51card and paying us thinking that
55:54everything is going in your pockets.
55:56>> And it looks like majority money is
55:58going to you and half of that would be
56:01going to government and paying some
56:02officials. That's what we all assume.
56:05[laughter]
56:06>> That's what the world assumes. I'm sure
56:08>> the state makes about 36,000 crores from
56:11alcohol
56:12>> every year.
56:13>> Every year and growing.
56:16>> So every year there's a budget given to
56:18the state. Bigger is Karnataka. 48,000
56:21is this year was Karnataka.
56:25>> I'm still blown away with this.
56:27[laughter]
56:30I would never expect this.
56:31>> Yeah. Lot of
56:33uh a alcohol key bottle which is 5,000
56:38rupees. A manufacturer would make like
56:40two 300 rupees and the retailer would
56:42make 4 500 rupees and subm
56:47agents government agents government is
56:49the cost which agent also no distribute
57:08a retailer and a manufacturer
57:13government
57:13>> and all around the world government.
57:17>> No, I don't think this is Maharashtra.
57:20This is Maharashtra. Hana is lower.
57:22That's why Hana's
57:25consumption is high but the alcohol
57:27revenue to the government is only about
57:2912,000 uh 12,000 crores last year.
57:33>> Okay. Because they don't put much taxes.
57:35>> They don't put much taxes. Goa is much
57:36cheaper. go is much lower. So as I said
57:40the prices are cheaper
57:5545 to 55%
57:58minimum and this is only India and is
58:00what I'm asking all around
58:04uh no
58:07No, I think UK is expensive. UK charges
58:11about £12 fixed. Whatever your bottle
58:14price. No, it's not expensive. Rather,
58:16it charges fixed. Whatever the price of
58:17your product may be, it charges only 12
58:20a bottle.
58:23Black label red
58:28as taxes.
58:33The price of red label
58:35>> or the price of Glen Walk would rather
58:38be the same price what you get in India.
58:40>> I don't know. Glen log and reden
58:43I don't even know
58:52it'll be appleenv
58:57and India as well but
59:00the brand difference then you would make
59:03more money in UK no and any other market
59:06which is identical
59:09mass market This is Brazil. I'm assuming
59:12market
59:15US is cheaper. US is cheaper.
59:19UA is cheaper. No tax come
59:23>> on alcohol.
59:24>> On alcohol
59:25>> and even US has less.
59:26>> US is less.
59:27>> So why our government charges more tax
59:30on this? Is there there must be some
59:32reason?
59:33>> So taboo reason UA
59:37than India. So if you see last last even
59:39they made smoking expensive right
59:41cigarettes they made it expensive
59:42>> which is a good thing
59:44>> which is a good thing. So that's how
59:45that's how could be the thought maybe
59:46that people if you can afford it then
59:49then might as well pay for it.
59:51>> But then yeah we established
59:57let's say consumption is higher than any
1:00:01other state because if even though it's
1:00:03expensive expensive
1:00:06but at least they're making money that
1:00:07way. We're the second largest industry
1:00:10after tobacco
1:00:12to service the government.
1:00:16>> So, but there what I'm trying
1:00:19>> gets the second largest uh revenue from
1:00:22alcohol in our state at least.
1:00:24>> Mhm. What is your view?
1:00:28>> Yeah.
1:00:30Like completely ban states
1:00:34alcoholic.
1:00:38No, I open you want to basically
1:00:48>> because of your business.
1:00:49>> Not because of my business, but also
1:00:51it's a social drink. It's it's also a
1:00:53it's also today a part of our lifestyle.
1:00:56So I think shutting it down would be not
1:00:58the right thing.
1:00:59>> But at the same time u I think even our
1:01:02age limits are high. It's 25 in
1:01:04Maharashtra with other other states is
1:01:0621
1:01:07>> legal alcohol consumption age. So I
1:01:11think uh that's something that Mahashra
1:01:13should look at it. 21 is decent enough
1:01:19is a little
1:01:22[snorts]
1:01:23that's a government but see proh because
1:01:26the prohibition I was reading a stat
1:01:28prohibition doesn't work a lot
1:01:30especially
1:01:32case
1:01:34UP has become the highest grossing
1:01:37revenue of alcohol. So
1:01:47how did it help or number of deaths
1:01:49poisonous that's almost about three
1:01:52three a day in our country majority come
1:01:55from Bihar because
1:02:03to rather give it a legitimate way root
1:02:05is what I feel.
1:02:07[clears throat] So I think that doesn't
1:02:10work anywhere.
1:02:11>> Prohibition is not working.
1:02:12>> Prohibition doesn't work anywhere.
1:02:14>> So prohibition work.
1:02:19What should be the way to do it? But
1:02:21taxes government's
1:02:24making the money
1:02:26>> whatever they require to run run the
1:02:28state and the consumer is also buying
1:02:31it. So I think it's it's working well
1:02:33for everyone's system but the uniformity
1:02:35if you look at it is not fair that
1:02:42in fact there should be uniformity of
1:02:43whatever people buy
1:02:45>> then I think the right number
1:02:47>> will also grow. I think
1:02:50that's what I personally feel the number
1:02:52will grow in every state
1:02:54>> and you you think
1:02:55>> and that's how you will curb illegal
1:02:57alcohol. So there was an article today
1:02:59in fact I was reading that the industry
1:03:01of illegal alcohol has gone to as big as
1:03:0360,000 crores
1:03:06>> what do you mean by illegal alcohol
1:03:08>> which is made illegally
1:03:09>> so not tracked by government tracked by
1:03:11government
1:03:12>> or someone who's mixing something up
1:03:13>> someone who's mixing. So the black label
1:03:15there are there are people that you can
1:03:17buy today you know
1:03:20black label or whatever you drink there
1:03:22are brands that you can buy from gray
1:03:24market. So the gray market exists and
1:03:27inside the bottle what you're drinking
1:03:29you don't know and you're actually
1:03:30consuming that.
1:03:33So I would rather say that I would
1:03:35rather buy from a legitimate liquor
1:03:36store. You know, you'd rather say that
1:03:39you buy from legitimate liquor store and
1:03:41buy buy from a bootleger and you don't
1:03:43know what's inside. You may be paying
1:03:45half the price or little more than half
1:03:48the price, but what are you actually
1:03:50doing then to your health?
1:03:52Because you actually don't know what's
1:03:53inside it.
1:03:56>> And how would you know this is
1:03:57legitimate or illegitimate?
1:03:59>> If you're buying from a legal liquor
1:04:00store, it has to be legitimate. It's no
1:04:02way he's going to risk his license.
1:04:05But can you look at the taste the the
1:04:09probably some quality some metric
1:04:11something where which can tell you
1:04:12whether it's legitimate or not. So the
1:04:14government has been working on certain
1:04:16uh you know they've been working on
1:04:17certain QR codes and stuff that where it
1:04:20was produced deploy but I think Hana has
1:04:24just started it and Maharashtra will
1:04:26follow it very soon where you will be
1:04:28able to scan a code and say whether this
1:04:30bottle has been already supplied to an X
1:04:33retail store or X where has this bottle
1:04:36actually come from? You can track the
1:04:38entire history of the bottle. But can
1:04:40you tell if if you drink two alcohols?
1:04:44>> I can tell because of
1:04:45>> you can tell a difference between which
1:04:46is real and which is not the experience
1:04:48that I have. But the common man usually
1:04:50cannot tell.
1:04:52>> There's a bottle crisis going on. No,
1:04:54>> there is a bottle crisis because of uh
1:04:56the war.
1:04:56>> Ah glass bottle crisis. I was reading
1:04:58about it.
1:04:59>> Yes, there is a glass bottle because of
1:05:00that. It's only going up and up and up.
1:05:02Obviously now that's why the companies
1:05:05are the brands are passed for a price
1:05:06hike and they want a price hike and but
1:05:09ultimately I think this will all once
1:05:11the war settle down everything will
1:05:14>> but is it costing you something in your
1:05:15day-to-day operations
1:05:17>> as a manufacturer? Yes. Not as a
1:05:20retailer because as a retailer
1:05:23it doesn't make me a difference if my
1:05:24product becomes 100 rupees expensive the
1:05:26consumer is going to pay for it.
1:05:27Obviously the pinch is to the to the
1:05:29consumer which he will eventually look
1:05:33at it but uh as a retailer I would not
1:05:35feel a pinch right now but as a
1:05:37manufacturer yes because I have to
1:05:39either absorb that cost or take a hard
1:05:42call of increasing the price.
1:05:43>> M and then if you increase the price the
1:05:47market share goes down.
1:05:48>> Market share can go down.
1:05:50>> At what point does the market share go
1:05:52down? 10 20 30% key% change
1:05:57>> depends if my competitors are not
1:05:58increasing the price if they're
1:05:59increasing the price are they ready to
1:06:01absorb do they have the margin so
1:06:03basically if you look at us if you look
1:06:05at us today Glenwok which is m a
1:06:08three-year-old scotch which can be
1:06:11compared to a red label or a valentine
1:06:13I'm already 35% cheaper than them today
1:06:15in Maharashtra
1:06:16>> I am forwarding this to my consumers I'm
1:06:19forwarding the right price to my
1:06:20consumers so over there I have I'm I'm
1:06:23you know hard on margins
1:06:25>> and if I have to absorb the glass cost I
1:06:29will have to increase the price. So
1:06:31basically the gap between me and my next
1:06:33competitor kind of comes down but they
1:06:36because they are enjoying that extra
1:06:37margin probably they absorb the price.
1:06:40>> But if you increase your price let's say
1:06:42you're 35% cheaper today tomorrow you
1:06:44become 25% cheaper. Will you lose market
1:06:47share? I will lose market share because
1:06:49the consumer starts feeling then that
1:06:50I'm cheating the consumer. The consumer
1:06:53does not know the real reason why we've
1:06:54increased the price and our market share
1:06:56could go down by 5 to 10%. Which is
1:07:00something which I would not want. living
1:07:02liquids. What are the five or six things
1:07:06that
1:07:08before you
1:07:10decide?
1:07:12[snorts]
1:07:13>> Uh obviously
1:07:17locality
1:07:18>> uh it has to be uh because
1:07:21>> locality
1:07:23>> a posh locality a decent locality I
1:07:26can't be opening a store in Dharavi
1:07:27today. I will have to go to a good uh
1:07:30you know uh Hanani type of a locality or
1:07:33a good locality where there are could be
1:07:36there are expats could be there are good
1:07:38working-class people living good
1:07:40>> you know a good area location
1:07:44uh my neighboring stores could be
1:07:46there's a nature's basket there's a
1:07:48there's a there's a food store there's a
1:07:50hyper store next door because of that
1:07:52then there are shoppers coming
1:07:54>> uh probably
1:07:58enough parking space
1:08:00uh where consumers can customers can
1:08:02come. It has to be road facing can't be
1:08:05a by lane or a lane has to be a wide
1:08:07road.
1:08:10>> But do you see other competition as
1:08:12well?
1:08:15We do see a competition and we would not
1:08:17want to be very close to a neighboring
1:08:19liquor store. That's something that we
1:08:21technically would not want it to happen
1:08:23that way. And by rule there is a rule
1:08:25that we have to be 500 m away from
1:08:28another liquor store. So there is a rule
1:08:29in you cannot open uh as close as 500 m.
1:08:36No it's 250 m. 500 m ta now it's 200 or
1:08:40220 m. Now it's 220 m. You cannot come
1:08:43in more than 220 m close to another
1:08:45existing liquor store.
1:08:47>> That's only in Maharashtra. But uh
1:08:51>> so then almost already how would you
1:08:53find gaps?
1:08:54>> We find the gap because as I said today
1:08:57we've built the name we've built the
1:08:58name as living liquid. So it's it's as
1:09:00good as a a brand opening versus a
1:09:06>> so I'm just saying today if you have a
1:09:08branded restaurant opening versus a
1:09:11unbranded restaurant who's been there
1:09:13since archive days you'd more go towards
1:09:16a brand. So today there is living
1:09:18liquids has created its uh
1:09:22uh I can say legitimate following that
1:09:26we have today that uh people trust us
1:09:29the trust that we built over the years
1:09:31over last 20 years the trust that we
1:09:33built people have seen us across
1:09:34airports people have seen us in shopping
1:09:36malls people have seen us in uh
1:09:38supermarkets hypermarkets and there's a
1:09:40trust that they believe in so I think uh
1:09:44because of that
1:09:47You're okay with
1:09:47>> we're okay with
1:09:48>> you were the first one to start selling
1:09:50alcohol online.
1:09:50>> I was the first one to start selling
1:09:52online but online was okay
1:09:53>> in the country [gasps]
1:09:56>> I guess in the country. Yes.
1:09:58>> Because after us West Bengal has just
1:10:00got the approval last two years back
1:10:03>> uh where West Bengal online has become
1:10:06official
1:10:07>> and I think Swiggy and Zumato are
1:10:08delivering or something of that sort.
1:10:10heard but uh during co time uh there was
1:10:15a you know because I'm sure in time
1:10:20we were all we were the only
1:10:27time why were we allowed to sell
1:10:32necessity
1:10:34>> the word when you said necessity is the
1:10:36wrong word we were the only one business
1:10:38which was officially allowed to open
1:10:40within 15 days of COVID.
1:10:43>> Really?
1:10:44>> Yes. Alcohol stores were the only
1:10:46business which was opened. So if you see
1:10:48supermarkets were allowed,
1:10:50>> food and grocery stores were allowed,
1:10:52restaurants were shut, but liquor stores
1:10:54were open.
1:10:55>> Because liquor is a necessity.
1:10:56>> I now put it up. I term is a necessity.
1:10:58That's the reason I term it necessary.
1:11:10That's the wrong for you. It's great.
1:11:14>> No, no, no. To me, I think for the
1:11:15common man, it's great because again,
1:11:17you're making him go and buy illegal
1:11:20alcohol. He's going to find ways how to
1:11:24get it.
1:11:27>> He is going to again go and buy. So
1:11:29basically you're doing something you're
1:11:32opening doors to you know you're opening
1:11:35a [snorts] Pandora box again where what
1:11:39comes out from that you don't know.
1:11:41>> Okay. So you were allowed to sell
1:11:43alcohol in 15 days. Yeah. So the
1:11:45government and there were huge lines
1:11:46because
1:11:52so people was trying to stock
1:11:55people were in lines. You know there was
1:11:57a crazy uh queue outside our stores and
1:12:01we remember our only thing was that we
1:12:03had to shut it early. We were allowed
1:12:05some five or six hours of operations.
1:12:08>> We could open by 1:00 and close at 6:00
1:12:10or 7. I don't remember but it was
1:12:11something of that sort. So
1:12:13>> but
1:12:23So
1:12:24to ease the consumer and lines because
1:12:27norms follow the government online
1:12:31start.
1:12:32>> So that online permission went on for
1:12:35about 3 years is when we really people
1:12:38and we were the first one to come up
1:12:40with an app and as I said by then we
1:12:42were already a brand.
1:12:44So people trusted us, they downloaded
1:12:46our app and we had a crazy following on
1:12:49the app.
1:12:50>> So online was 3 years.
1:12:51>> Yes.
1:12:52>> And then and then are you worried
1:12:57actually
1:13:01nearly 25% was online?
1:13:04>> 25%.
1:13:06After
1:13:07Yes.
1:13:11you were today. How many of us are
1:13:13shopping online?
1:13:14>> Amazon, Flipkart, if you see their
1:13:17numbers, they're great.
1:13:20>> Stop going out.
1:13:21>> Yeah, we all shop online today.
1:13:23>> And uh I think the spend happens much
1:13:26more because
1:13:28>> we are at our leisure. We are sitting in
1:13:29our office or we sitting in our home and
1:13:31we ordering and
1:13:34plastic money.
1:13:38>> [laughter]
1:13:38>> statement
1:13:41like that.
1:13:42>> Yeah. So I think online is a great
1:13:43platform. Government should relax it but
1:13:46all depends on the government. Now
1:13:48Bengal quickmerce
1:13:52does that bother you? Is that a threat
1:13:57then it's they will they have a bigger
1:14:00business.
1:14:01They have better delivery reach
1:14:04convenience and bigger bank account.
1:14:09>> [snorts]
1:14:13>> Then probably your business threaten
1:14:15[sighs and gasps]
1:14:23Maharashtra comes under prohibition act
1:14:25and under prohibition act this is not
1:14:26allowed. So delivery by itself is not
1:14:29allowed under the prohibition act.
1:14:31Licenses are not allowed under the
1:14:32prohibition act. So a lot of times
1:14:35whichever government has come
1:14:37they've promised that we may open new
1:14:40licenses through various means and norms
1:14:43but 1978 was the last uh license issued
1:14:47and till today there's no license
1:14:49issued. [snorts]
1:14:50>> So Maharashtra has an act called a
1:14:51prohibition act.
1:14:52>> I'm sure you've read it.
1:14:54>> You've seen it and uh under that all of
1:14:57these uh norms don't fit.
1:15:00>> See it's okay. So we are protected that
1:15:03way also. So it's a good thing.
1:15:05>> So it's so you protected by regulation
1:15:08protected
1:15:08>> but somebody is able to crack this then
1:15:11you think it's it's going to disrupt.
1:15:14>> It will disrupt but then uh I think then
1:15:17we will also
1:15:18>> do something about it.
1:15:19>> Do something. I mean we will also have a
1:15:20good play in it.
1:15:22>> Obviously with the experience as I said
1:15:23with the brand name with the experience
1:15:24with all the
1:15:26consumer patterns and behaviors that we
1:15:28know and we have so many consumers all
1:15:30over the city. I think that will also
1:15:32help us some way or the other
1:15:34>> and your reach would be
1:15:35>> my reach would be far better
1:15:37>> because any newcomer that comes today I
1:15:39know they have a lot of money they have
1:15:40a lot of backing and they they're big
1:15:42and they're huge and probably they know
1:15:44it but uh we also know the format
1:15:47luckily we know the format
1:15:48[clears throat]
1:15:48>> and probably might some some quick
1:15:52commerce might partner it with you
1:15:54>> in order to
1:15:55>> it could be that as well
1:15:56>> as well
1:15:57>> today [clears throat] airports are with
1:15:58us malls are with us so I think that way
1:16:00Could be.
1:16:01>> Yeah,
1:16:02>> we only service the back end.
1:16:04>> How big is duty-free business?
1:16:06>> It's quite big in India. But uh I think
1:16:09the metros is much bigger. The smaller
1:16:11tier 2, tier 2, tier three cities are
1:16:13much smaller.
1:16:14>> Okay.
1:16:15>> But the metro businesses are decently
1:16:17sizable.
1:16:18>> Very very Okay. And what's more
1:16:21profitable? Airport stores are like a
1:16:23city store.
1:16:25>> City store. Because airport stores, your
1:16:27rentals, as I said, are so high. the
1:16:29margins
1:16:30>> then why do you why are you there just
1:16:32branding? there today because it's not
1:16:34branding but it's also our flagship
1:16:35stores and I have a I have a problem
1:16:38personally I don't like shutting my
1:16:39stores down it's like a baby for me and
1:16:41it's like you know I can't unless it's
1:16:44really really in majorly red
1:16:45>> I would only transfer or shut my license
1:16:48>> otherwise I there's no reason I would
1:16:50shut my store because today it's also a
1:16:52feather in our hat
1:16:54>> that having uh you know airport stores
1:16:56has also helped us uh build the brand
1:16:59name that we are build the trust that we
1:17:01have
1:17:01>> so you would operate thin profit margin
1:17:04you're like
1:17:06it's okay
1:17:09I would
1:17:10>> and you said you use word consumer
1:17:12psychology consumers consumer psychology
1:17:16behavior give me two three stats two
1:17:18three things that you understand about
1:17:19consumer who buys alcohol
1:17:22>> so this my consumer psychology that I
1:17:25know also helped me create my own brands
1:17:28>> I knew the I know the sweet spot
1:17:32M
1:17:33>> the price the pain point of his uh the
1:17:37the kind of uh when we sell brands day
1:17:41in day out and there's a new brand that
1:17:43is born every second day you know
1:17:45there's a new brand that comes to our
1:17:46shelf the every second day we are the
1:17:48first ones who get the feedback from the
1:17:50consumer no he did like it he did not
1:17:52like it
1:17:53>> there's a taste profile what he
1:17:54preferred what he didn't prefer whether
1:17:56it was a color whether it was a taste
1:17:58whether it was a strength whether he
1:18:00really liked it And for whatever reason
1:18:02the first feedback actually we get.
1:18:05>> So I think uh which also helped me use
1:18:08all of this to create our own brands.
1:18:11>> So this is one. Second could be the
1:18:14price points which are right which are
1:18:16wrong. Uh
1:18:19divide divide let's say market into
1:18:20three pieces. Okay. Mo ideal profile
1:18:25based on consumer data and psychology
1:18:27that you understand about the alcohol in
1:18:29India. A profile
1:18:34cheap market, mass premium and premium.
1:18:37Okay. So somebody who's buying at cheap,
1:18:40what is the price point?
1:18:45Explain and then do
1:18:46>> at 150 rupees he wants a kick.
1:18:49[laughter]
1:18:50That's it. If he's spending doesn't
1:18:52matter.
1:18:53>> He's he's spending 150 rupees a day. He
1:18:56wants to sleep well. He wants that uh
1:19:00nasha
1:19:01>> and uh he should have a good sleep at
1:19:04home. That's all he wants. And obviously
1:19:06taste profile
1:19:10because they that's what I feel that
1:19:12people see alcohol with their eyes
1:19:13first. the strength of the color
1:19:19they prefer. That means
1:19:22okay and
1:19:25if you can give them something at 150 is
1:19:28nothing like it.
1:19:29>> That's it. And he's not looking for
1:19:31taste, preference, anything. It's just
1:19:32like
1:19:34>> he is looking at taste and preference.
1:19:36But the first priority is the right
1:19:38price [clears throat]
1:19:39>> because he would never be able to afford
1:19:41more than that.
1:19:42>> Okay. And what India 150
1:19:47>> your early early range whiskey
1:19:50>> whiskey
1:19:50>> whiskey
1:19:51>> 150 rupees per whiskey
1:19:53>> quarter three pegs
1:19:55>> quarter is what
1:19:56>> 180 ml
1:19:57>> 180 ml and which brand would be killing
1:20:00it in this?
1:20:01>> It's then there are in this price
1:20:03bracket there are regional brands.
1:20:05>> So which regional brand Maharashtra
1:20:06would be
1:20:07>> Maharashtra now has just introduced a
1:20:08new policy called MML. Maharashtra made
1:20:11alcohol. M.
1:20:12>> So they are killing it.
1:20:14>> So which brand would be who would be
1:20:15killing it? One, two. [sighs and gasps]
1:20:18>> There's a lot of brands. Yeah. There is
1:20:20uh Derby, there is
1:20:25there is Derby and there is
1:20:28Orange City.
1:20:29>> Okay.
1:20:30>> These brands you've not even heard of.
1:20:31>> I've not heard of any. [laughter]
1:20:34I've only seen.
1:20:36>> Okay. And then Karnataka would have a
1:20:38different profile.
1:20:38>> Karnataka has a different profile. There
1:20:40you have again at 150 rupees you have
1:20:42these brands called uh original choice
1:20:44which is your comparative to these these
1:20:47brands here which is at 150 rupees.
1:20:49>> Okay. So that's there and they would be
1:20:51ideally very prof profitable these
1:20:53houses the guys who hold
1:20:54>> not very profitable very thin margin
1:20:56because at 150 rupees you really as I
1:20:58said 80% is the government and whatever
1:21:00>> so they won't have large businesses
1:21:02>> the business is very large but margins
1:21:04are very thin
1:21:05>> okay so then we come to the second
1:21:07second price range
1:21:10>> 220
1:21:12that would be your McDonald's number one
1:21:14>> and I think like the customer is mid
1:21:16premium
1:21:18150 to 500 00 I'm assuming would be a
1:21:21customer.
1:21:22>> Then your second range is starting from
1:21:24blender pride.
1:21:24>> What that is?
1:21:26>> That is about 500 rupees.
1:21:28>> Okay. So 500 to how much?
1:21:31>> 500 to
1:21:33>> about 700
1:21:36customer.
1:21:38>> Okay.
1:21:40>> And what is the profile of this kind of
1:21:42customer?
1:21:44College kids.
1:21:46>> He could be anyone. He could be someone
1:21:48who is if he's drinking about one bottle
1:21:50a week. I'm seeing a full bottle. So
1:21:52he's spending about uh you can say 6,000
1:21:56on alcohol a month which and if he's
1:21:58giving about 10% of his so his salary
1:22:00would be somewhere around 30 40,000
1:22:02rupees a month.
1:22:03>> Okay,
1:22:03>> that could be a guy working at a call
1:22:05center could be a guy working in our
1:22:07offices could be anyone.
1:22:09>> Okay, cuz this that would be that
1:22:11profile. What do this person optimizes
1:22:13for? He he thinks he wants a cool brand.
1:22:18He just wants to be cool. He wants a
1:22:20cool brand at that price point. So
1:22:21Glenwok came in that cool brand uh
1:22:24segment wherein when we launched at
1:22:261,700 rupees and our competition our
1:22:30scotch our whiskey competition was 1,500
1:22:32and we bring a scotch at 1,700 because
1:22:37the next scotch which was at 2,500 was
1:22:39unaffordable by him. So his jump from
1:22:431,500 to,700 was much easier rather his
1:22:47jump from 1500 to 2400.
1:22:50>> Okay. But you said 5700 customer
1:22:54>> that is the 180 ml.
1:22:56>> Okay. Aa you're talking about a bottle.
1:22:58>> Yeah, I'm talking about a bottle. So my
1:23:00uh 180 ml also or rather we have a 200
1:23:03ml is at 600 rupees.
1:23:05>> Okay. So his jump of 100 rupees was
1:23:08easier than going to a jump of,100
1:23:11or,200 rupees.
1:23:12>> Got it. And what's the difference
1:23:14between a whiskey and a scotch?
1:23:16>> So whiskey is uh probably does not have
1:23:19a malt mixed in it and a scotch has
1:23:22about 15% single malt mixed in it.
1:23:24>> And what does that mean?
1:23:25>> That kind of uh
1:23:29I can say it smoons your alcohol.
1:23:33>> Okay. So a single malt malt is basically
1:23:36what kind of brings your harshness
1:23:39levels down and gives you a very smooth
1:23:42uh taste.
1:23:43>> Okay. So that's where you realize this
1:23:45is the so I want to make a cool brand
1:23:48for this profile. Yes.
1:23:50>> And give them a better product.
1:23:52>> Yes. 100%. Give them a upgrade them from
1:23:54a whiskey to a scotch because there was
1:23:56no upgrade happening from the from the
1:23:58longest of time that I was in the
1:24:00business. I never saw that guy getting
1:24:02upgraded because his upgrade was so far
1:24:05off unless he gets a a a double salary
1:24:10>> jump. He's never going to be able to
1:24:12>> make his expense double.
1:24:15>> So we really saw that uh you know price
1:24:18point as I said the sweet spot and we
1:24:20brought him there. I said we'll make
1:24:21less money but at least we'll upgrade
1:24:23the consumer and let him first get
1:24:25upgraded and then let him at least
1:24:27>> and how did you identify need
1:24:30[snorts]
1:24:31like do you have your customers told you
1:24:33that they want to upgrade but the salary
1:24:35is not there like what is the how did
1:24:36you identify as a
1:24:38>> see I thought uh there was this gap
1:24:42that's why when I went to Scotland
1:24:45it was a very it was a trial and error
1:24:48for me
1:24:49>> means I said I'm going to make a pallet
1:24:50pallet a pallet only has about 800
1:24:52cases. I sat obviously it's a it's a
1:24:56journey that I went through of 4 years
1:24:59and all of that but
1:25:03the idea was again as I said I always
1:25:05liked doing my experiments and trials.
1:25:08So when I went to Scotland I went I sat
1:25:11with the blenders I made this blend
1:25:13>> and I knew what I wanted for my
1:25:15consumer. I exactly knew what I could
1:25:18give him. But I was always wondering
1:25:20whether this would work, this would not
1:25:22work. So when I created the palette and
1:25:24I came back, I thought this palette
1:25:26would last me at least
1:25:2945 days to 60 days. We were wiped off in
1:25:3115 days.
1:25:32>> Nice.
1:25:33>> So I had a a practical problem
1:25:38>> but I had a good problem in my hand.
1:25:40>> Yeah. Yeah.
1:25:41>> And I understood that my pilot has
1:25:43worked
1:25:44>> and somewhere we got the confidence.
1:25:46Okay. Now this is what we should do.
1:25:48>> Nice. Okay. So this is what this is how
1:25:51it started. This is how
1:25:52>> this is the second price and then the
1:25:55premium one.
1:25:57>> Premium one was a single malt and uh
1:26:04again our single malts were
1:26:07not being explored more than the age. I
1:26:10mean there are single malls which are
1:26:11available in the country are like 12
1:26:13years, 15 years, 18 years whatever the
1:26:15age profiles but the taste was not
1:26:17different. They were not getting blends
1:26:20like how you get blends into single
1:26:22malt. They were not getting blends where
1:26:24I saw the gap again and when I went to
1:26:26Scotland and I sat with them and I said
1:26:28now I want to make a premium single malt
1:26:30but with blends with flavors. So we made
1:26:33a sherry cast finish which gives you a
1:26:35sherry wine. So we actually uh cask it
1:26:39in a sherry cask for about 6 months and
1:26:42it takes all the flavors of the wine and
1:26:44in a single mold it gets mixed. So we've
1:26:46got a cherry cask, we've got a oak cask,
1:26:50we've got uh
1:26:53uh bourbon cask, we've got a rum finish.
1:26:57So we've got four different finishes and
1:27:00this is what we're trying to give you in
1:27:02a single malt.
1:27:03>> Okay? So it's like
1:27:06enjoying, you know, something flavored
1:27:10in in your single malt which which has
1:27:12more body which has more flavor. It has
1:27:15much more than what you're actually just
1:27:17drinking by age
1:27:18>> because it's it's more or less otherwise
1:27:20it's more monotonous. You're drinking
1:27:21the same liquid just for different ages.
1:27:24And uh that gap I I I identified that
1:27:27this was not this was missing in the
1:27:29single mall segment is what we brought
1:27:31to India and that's how we
1:27:32>> got it. And then this price range would
1:27:35be
1:27:36>> 6,000.
1:27:37>> Okay. And what is the
1:27:39what is a 6,000 rupee customer getting
1:27:42which a 150 rupees customer is not
1:27:45getting?
1:27:48[laughter]
1:27:48Obviously
1:27:50the quality
1:27:51>> okay status
1:27:52>> there there is no no it's not status
1:27:54it's also the quality it's also made
1:27:57distilled that many times it's pure in a
1:28:00in a way if I can say it so these
1:28:02whiskies would be distilled about once
1:28:04or twice and we distilled it 14 15 times
1:28:06as much as single malts single malts are
1:28:09made in with a single grain they made
1:28:11they made a single grain uh the facility
1:28:15is obviously much more techniques that
1:28:17are used in making developing these
1:28:18these brands. I mean there's lot more. I
1:28:20mean you just don't charge something for
1:28:22something what is not there. So the
1:28:25taste is quite superior. The smoothness,
1:28:28the smell, the bottle, the packaging,
1:28:30the
1:28:30>> and a customer is able to identify
1:28:32differentiate between this. The taste,
1:28:35smoothness and everything
1:28:36>> 100%.
1:28:36>> A common man is able to
1:28:38>> Yes. Yes. 100%. on the first sip he
1:28:41takes he will understand if he's
1:28:43drinking a single malt at least or a
1:28:44whiskey
1:28:46>> and if he also compares us to the you
1:28:48know other single malts he will
1:28:50differentiate that yes this is a blend
1:28:52this is sherry cask this is rum cask
1:28:54>> okay
1:28:55>> he does identify and understand
1:28:56>> tell me top three things which makes an
1:29:00alcohol more expensive
1:29:01>> bottle
1:29:02>> m
1:29:03>> the packaging
1:29:06duties
1:29:08>> no what my point is from a cheap bottle
1:29:11of alcohol. Let's say there is one type
1:29:14of alcohol which would be 1,000 rupees
1:29:16and then there's the same type of
1:29:18alcohol which is probably available in
1:29:2050,000 as well. What is the difference?
1:29:22Like a whiskey would be available in
1:29:241,700 rupees and is available at 1 lak
1:29:27rupees as well
1:29:28>> because then that is the age right of
1:29:29the whiskey. Obviously a 1 lak rupee
1:29:32bottle that you're saying would not just
1:29:34be 1 lakh rupees just because the bottle
1:29:36is fancy. M
1:29:38>> uh it would be the liquid has been aged
1:29:39for that many years. So I'm sure a one
1:29:42lakh rupee bottle
1:29:45would be a at least a 25 or a 30 year
1:29:48old aged whiskey which has been kept in
1:29:51a barrel for 30 years somewhere in
1:29:53Scotland and or Japan if it's a whiskey
1:29:57it's it's a single malt say Japanese
1:29:58single malts or single malts made in
1:30:00Scotland uh these are the only two
1:30:02places single malts are actually
1:30:04actually supposed to be
1:30:05>> and what is the difference between one
1:30:08year old and 30
1:30:12Good question. What's the difference?
1:30:14But it's it's a taste profile.
1:30:16>> It's the taste profile. You really
1:30:17cannot say what's the difference. It's
1:30:19it's
1:30:20it is a taste profile. It is what you
1:30:22like. And uh
1:30:24>> is it more to do with status and quality
1:30:26and it's like I've made it in life so
1:30:28now I can drink expensive.
1:30:29>> Obviously, it's like flying in a plane
1:30:31and flying in a charter.
1:30:33>> I mean,
1:30:35>> yeah,
1:30:35>> that is what you made it. Driving a car
1:30:37worth
1:30:38Five lakhs and 1 cr or five crores.
1:30:41>> It's it is the status. No doubt it is
1:30:43the status
1:30:44>> and you start liking uh you start liking
1:30:48things which are premium or which no one
1:30:50else is having it.
1:30:53>> Which one would be the most expensive
1:30:54alcohol that you've ever sold? [snorts]
1:30:57>> Uh Glenfidic 50 years old somewhere
1:31:00around 25 lakhs a bottle.
1:31:02>> 25 lakhs a bottle.
1:31:04>> Yeah. People buy that
1:31:06>> a lot or [snorts] like few?
1:31:08>> No, no, not a lot. It's sold like one
1:31:10bottle probably in one or two years.
1:31:13>> Okay.
1:31:13>> It's mainly for gifting if it's you know
1:31:16it's someone's 50th birthday and
1:31:19obviously it's it's more like that.
1:31:21>> What's the oldest alcohol?
1:31:24>> I think about 90 year old. Macarendas a
1:31:2790 year old bottle.
1:31:28>> And how much is that? If I didn't if I
1:31:30read it right, it was available in Hana
1:31:33for about uh 1 and a half or two crores.
1:31:39>> Wild
1:31:42which are regular bottle which gets sold
1:31:43at maximum price for you two or three
1:31:47>> under 50,000 rupees is a no-brainer
1:31:50today. There is no dirt.
1:31:53>> Yeah.
1:31:54>> So tequilas, mscals,
1:31:57uh single malts. H
1:31:59>> wines under 50,000 rupees to the tag of
1:32:0250,000 is not a not a difficult task to
1:32:04be sold
1:32:05>> but anywhere above 50,000 once that
1:32:08benchmark crosses then it's obviously it
1:32:11has to be a a fluent consumer who is
1:32:13buying and the brand has to be that well
1:32:15known
1:32:16>> and how do you build a brand when you
1:32:18can't advertise
1:32:19>> so brands which can't advertise I think
1:32:22we build it by a global story
1:32:25>> the more your brand are seen across duty
1:32:27freeze across Ross the world. Uh that
1:32:30definitely builds your brands. Hence
1:32:33today with Glenok also in early stage
1:32:36only we decided that we need to have our
1:32:38global division
1:32:39>> and travel retail division because if
1:32:41travel retail does not exist we will not
1:32:44be able to build the brand very well.
1:32:45>> So the brand doesn't exist.
1:32:47>> Yeah.
1:32:47>> So you would then have to pay heavy to
1:32:49distributors because they will be the
1:32:52they will know that they they are the
1:32:54ones who are driving demands. So all
1:32:57airports will charge you a premium just
1:32:59to get a spot. Would wouldn't they
1:33:02>> to brand and advertise with them? Yes,
1:33:04they charge a very heavy premium. But uh
1:33:08but there's also a long queue in getting
1:33:10your brands selected because they select
1:33:14they get
1:33:16if India has 3,000 or 4,000 or odd
1:33:19brands they have. I don't know. I don't
1:33:22have the count of number of brands that
1:33:23an airport gets offered on a day-to-day
1:33:26basis.
1:33:26>> So, how do you get into an airport then?
1:33:28>> So, it's uh to getting into an airport
1:33:30is definitely your presentation, how you
1:33:32present to them uh your liquid, your
1:33:35packaging, your pricing, your story
1:33:37behind the alcohol, your your sales
1:33:41numbers, wherever you're existingly
1:33:42selling, you've got to be they got to be
1:33:45great. It can't just be that I have only
1:33:48made a brand for the airport and coming
1:33:50directly to them. There's a story behind
1:33:52that. Today when we went to UAE, Dubai
1:33:55was the first market that we touched
1:33:57when we went to UAE with our product.
1:33:59>> Obviously,
1:34:03Sanjayat being our partner and owner and
1:34:05founder of the company or of the brand
1:34:08made a decent impact. But apart from
1:34:11that,
1:34:13they also like the liquid when they
1:34:14tried the liquid. And the price point,
1:34:16as I said, we're 35% cheaper in the
1:34:18scotch category. We also pitched in the
1:34:20same price difference to them. And uh in
1:34:23that price range when they saw us
1:34:26>> uh and when they saw our India numbers
1:34:29they were very very thrilled and they
1:34:31were excited and uh immediately they
1:34:33kept and UAE also has a very big fan
1:34:36following of Sanjadat plus a lot of
1:34:39Indian Indian people uh you know kind of
1:34:42shop there and live there and travel. So
1:34:46it was easier for you.
1:34:46>> It was much much easier. How do people
1:34:49find out about your brand
1:34:53and you can't market it? So, how would
1:34:54the things in sorry alcohol dutyree
1:35:02inside this behemoth of 500 5,000 I
1:35:05don't know world of alcohol? How would
1:35:07somebody know
1:35:09this brand exists also?
1:35:11>> So, we do advertise with them in
1:35:12inflight magazines. We do advertise with
1:35:15uh on their uh
1:35:19on their apps.
1:35:21>> There is a duty-free app specially. Uh
1:35:24so we do advertise in all of that.
1:35:25>> Okay. And that does help us and
1:35:29um
1:35:31you know
1:35:33having Sanjayat with us as a partner
1:35:37definitely helped because the word of
1:35:39mouth had already spread uh that
1:35:42Sanjayat has launched his own whiskey
1:35:44>> even in India though we can't advertise
1:35:46but it was a business news.
1:35:49>> So as a business news we had at least
1:35:51200 over 200 articles
1:35:53>> written
1:35:54>> in the first 3 months itself.
1:35:56uh through various media channels right
1:36:00from Tabs of India to all the reputed
1:36:02channels uh NDTV had an uh a showcase
1:36:07they had a slot for us I remember so I I
1:36:10think uh we had enough publicity and
1:36:13enough word of mouth
1:36:15>> so to drive demand
1:36:16>> we were a household name
1:36:18>> when we when we launched
1:36:19>> so it's a celebrity that worked
1:36:21>> it definitely I give Sanjud the credit
1:36:23and uh he's been a integral part of our
1:36:26company.
1:36:27>> So that's why you have multiple
1:36:28celebrities with you.
1:36:29>> That's why I have multiple celebrities.
1:36:30[laughter]
1:36:31>> How many celebrities you work with? Now
1:36:34>> with every celebrity. Our company's
1:36:36policy is that we don't uh mix brands
1:36:39with any celebrity. Okay.
1:36:40>> We've given them one month segment. So
1:36:42if scotch is with someone, I will not do
1:36:44a scotch with someone else. If whiskey
1:36:46is with someone, I'll not do a whiskey
1:36:48with someone else. And that's how we've
1:36:49segmented it.
1:36:50>> Okay. So today with Glen Walk there
1:36:52Sanjad with Glen Journey as a single
1:36:54malt is AJ
1:36:56uh Ajay with Wodka we have Bacha we've
1:37:01just signed uh Seph with my Irish
1:37:04whiskey.
1:37:06>> Okay
1:37:06>> and we've signed Bundavan for ready to
1:37:10drink. [clears throat]
1:37:10>> Okay. So we currently have five
1:37:13>> right to drinker type
1:37:15>> selzer type or you can say uh breezer
1:37:18type is is what we are eyeing at we're
1:37:21launching that in the next two months
1:37:23>> so and are going to launch
1:37:25>> se and von in the next two months 3
1:37:27months will be launched
1:37:28>> and we have another five celebrities in
1:37:30the pipeline for this year
1:37:32>> you've already signed them
1:37:34>> conversations going on
1:37:35>> conversations going
1:37:36>> so now my question was why every
1:37:39celebrity wants to work with
1:37:41And
1:37:42>> because we've proved oursel uh we've
1:37:46done 300,000 cases last year. That's 25
1:37:4926. We've done 300,000 cases.
1:37:52Uh
1:37:55we're the fastest growing brand
1:37:59at least
1:38:01in Maharashtra if not in the country.
1:38:04But in the country we've been able to
1:38:06reach
1:38:0916 states in the last 2 years. This year
1:38:13we will reach 28 states
1:38:16>> and uh six countries we are already in.
1:38:19So internationally we are in six
1:38:21countries and 16 states in in India.
1:38:23>> Crazy.
1:38:25>> There's a trust that they've
1:38:28they've seen in me. I have proved myself
1:38:31and I think uh every celebrity somewhere
1:38:35sees that if he could do it with Sanju
1:38:37I'm sure I can do this again with them
1:38:40and there's there's clarity uh in the
1:38:43business I'm not I don't mix brands with
1:38:47anyone everyone has a different company
1:38:50under which they are there every
1:38:52celebrity with me is in a different
1:38:54company he is the stake owner of his
1:38:56company along with me so
1:38:59>> and Whose brand are you bullish on next?
1:39:01Next
1:39:03fastest would be
1:39:04>> I think next
1:39:08[sighs and gasps]
1:39:09my money would be on Vun and uh
1:39:14probably
1:39:16I would want all my friends to
1:39:19>> but I see the fastest segment would be
1:39:21Vuns because at
1:39:2620 rupees or 150 rupees uh ready to
1:39:30drink which will be a
1:39:34rum based, gin based and a wine based
1:39:36category. We're doing the similar thing
1:39:38with Bacha uh vodka based uh ready to
1:39:42drink. That's the reason my money is
1:39:44with Bacha and with
1:39:44>> Vun
1:39:46>> uh because that's going to pick up.
1:39:48>> Who do you think it's better to build an
1:39:50alcohol brand with? a Bollywood actor, a
1:39:54pop star or some creator who's now
1:39:58become big
1:40:00or like a comedian like for example
1:40:03Samarana building a brand or like uh
1:40:06banan bum building a brand or then maybe
1:40:09then doing
1:40:11karanjula from pop culture and then
1:40:14Bollywood may who would be the top right
1:40:16now let's say Kapoor or I don't know
1:40:18>> I would definitely love to work with
1:40:20Kapoor from all of these names and
1:40:22Samana because I know their following. I
1:40:24know what uh what they bring on the
1:40:27table and uh
1:40:30>> so what would you build with let's say
1:40:32Kapoor?
1:40:34>> A a good cognac.
1:40:36>> Okay. Expensive
1:40:37>> expensive high-end.
1:40:38>> High end.
1:40:39>> Has to be highend
1:40:40>> and s
1:40:42could be something fun. Could be
1:40:44something
1:40:47but s could be a beer.
1:40:49>> Okay. But beer you don't want to enter.
1:40:51>> I don't want to enter but with S I would
1:40:53do in beer because his audience is very
1:40:55you know his his yeah his his audience
1:40:57is more younger more chirpy
1:41:00>> but breather type sort wouldn't work
1:41:03with him.
1:41:03>> It would it would a rate to drink also
1:41:06would work with some but it's already
1:41:09gone for me.
1:41:09>> Okay. So so you would spend more on
1:41:12quality than on [clears throat]
1:41:13>> I will
1:41:14>> but you wouldn't do let's say concert
1:41:16marketing branding all that stuff. No,
1:41:19we have we will we do it and we have to
1:41:22do it. So I think uh
1:41:26>> we've already got that side of the
1:41:27business. Uh including bar brandings,
1:41:30including uh we've started making uh
1:41:33clubs
1:41:35now
1:41:36on our name. So club bars we've started
1:41:39developing on our name.
1:41:40>> So you will soon have a Glenwalk bar in
1:41:42Bandra.
1:41:43>> You will have a Glen Journey bar in
1:41:45Bandra.
1:41:46>> So those bar will be operated by you.
1:41:48not necessarily operated by us but uh
1:41:51the brand the the name of the bar is is
1:41:53behind the bar so
1:41:54>> some club inside that the bar would be
1:41:56yours [clears throat] and
1:41:58>> we we're talking to Kajim Khana so it's
1:42:00okay we already we've not signed but I
1:42:03think by the time this will air
1:42:05>> it'll be we'll have it
1:42:08>> so inside Kajim Khana there used to be a
1:42:10black dog bar
1:42:11>> okay
1:42:11>> years back
1:42:12>> it's changing
1:42:13>> it's changing to Glenwalk
1:42:15>> are you scared of the giants
1:42:17do Do they not trouble you?
1:42:20>> The companies?
1:42:21>> Uh-huh.
1:42:22>> I'm the largest retailer to them.
1:42:25[laughter]
1:42:28>> So, no, but that way uh I don't think uh
1:42:32as I said, I I think there's enough
1:42:34space for everyone. There's no there's
1:42:38no need to be scared of anything as
1:42:40such.
1:42:40>> What's the biggest challenge in your
1:42:42business?
1:42:43>> [snorts]
1:42:43>> licenses in retail
1:42:46>> and uh in the manufacturing company
1:42:50>> it's the number of licenses that you
1:42:52need the number of approvals that you
1:42:55need it's more than if I have to
1:42:57actually put it in words it's more than
1:42:5925 licenses that I need
1:43:02and uh 25 licenses to get to just import
1:43:07one brand is not easy
1:43:09>> how much time do you take does it take
1:43:11to get you 25 lens times and we have to
1:43:14do this every year.
1:43:16You have to do this every year. You have
1:43:17to go through this for every state
1:43:19differently for every year.
1:43:22So
1:43:23>> your legals must be happy. [laughter]
1:43:25>> They must be happy.
1:43:26>> Imagine you spend about the first after
1:43:29every March 31st you spend about 60 days
1:43:32in just getting make making sure that
1:43:34all your licenses are in place because
1:43:36till then you cannot sell your alcohol.
1:43:38time like how did you convince Sanjayat
1:43:40to come become a partner? How do you
1:43:43even know him? When did you first meet
1:43:45him?
1:43:46>> I met Sanju about 20 years back.
1:43:49>> Uh
1:43:55I had an opening of living liquids in
1:43:58>> I think you know it star.
1:44:02So I wanted to it was a it was the f so
1:44:06I think
1:44:09if I'm not mistaken 200 uh
1:44:1510
1:44:15>> okay
1:44:16>> 9 2009 200 2007
1:44:19>> m
1:44:19>> is when uh 2007 is when I was opening
1:44:23that store and uh it was a big format
1:44:26store it was a 2,000 ft² store and uh I
1:44:30had a dream that I wanted a celebrity to
1:44:32open and ribbon cut that store.
1:44:35>> So I had a friend buddy while I called
1:44:38Biwala and I said buddy I he was an
1:44:41event company and an event management
1:44:43company and stuff. So I called him I
1:44:45said buddy do you have any celebrity
1:44:47that we could go to? I don't have a big
1:44:48budget but I would like he said bro I'll
1:44:51take you to Sanju and Sanju is a great
1:44:52friend of mine. He's like a brother to
1:44:54me and he won't say no.
1:44:56>> And uh I'm sure he'll not even charge
1:44:58you or whatever but we'll see it. It
1:45:00it's it's not so tough and you know I
1:45:02would love you to meet him.
1:45:04>> I said fine. I remember he was shooting
1:45:06at me studio and uh Bundy and me were
1:45:10sitting in his vanity van and Sanju
1:45:11comes and I was like
1:45:15I was I had no words you know I could
1:45:16not even speak well that time
1:45:18>> to him that sir what do I so I was just
1:45:21like sir I have a small liquor store
1:45:23opening and he don't worry I'll come
1:45:30and we became friends I mean we
1:45:32exchanged numbers there and he came for
1:45:33the opening
1:45:35Trust me bro, he did not even charge me
1:45:37one rupee.
1:45:39He did not even charge me one rupee. He
1:45:41did not ask anything from me. Next day
1:45:44out of courtesy, I have sent him a
1:45:46hamper home of some 20 30 bottles of
1:45:49whatever he liked to drink that time. I
1:45:51asked Bunty what does he drink and I
1:45:53made a hamper and I sent it to his house
1:45:54and that's about it. He did not being a
1:45:57star and I'm telling you back then 2007
1:46:00he was at his peak.
1:46:01>> Yeah. And that's the kind of person he
1:46:05is.
1:46:06>> But why would you come for free?
1:46:08>> I have no idea.
1:46:09>> Just
1:46:09>> I have absolutely no idea. It was
1:46:11probably for the love for Bunty. I can't
1:46:13say that he saw something in me or
1:46:15anything of that sort
1:46:16>> because I was just a 25 year old kid and
1:46:21I don't think there was any more
1:46:23conversation that we had in terms of
1:46:25commercials or anything. So it was love
1:46:27for his friendship for By and he said he
1:46:29will come
1:46:30>> and he said don't worry I'll I'll I'll
1:46:32be there
1:46:33>> and I remember By picked him up from his
1:46:36house and brought him till there and he
1:46:37was there for an hour in our store
1:46:39interacting with guests customers my
1:46:42parents my elder brother I still have
1:46:44the picture with with my nephew who's 22
1:46:47now and he was like 3 4 years old that
1:46:49time I still have that picture since I
1:46:52started since since I stepped in 25
1:46:54years I've made so many brands
1:46:56And uh
1:46:58what are we recognized for? I mean we're
1:47:00recognized for a beautiful store, but
1:47:02what are we recognized for? What other
1:47:04recognition do we have? And uh
1:47:09why how can I be a global platform? You
1:47:13know, I can't open living liquids across
1:47:15the world.
1:47:16>> Obviously, that's something that will be
1:47:19too much to ask for.
1:47:21uh given the time span that I [laughter]
1:47:24have I'm sure I won't be able to reach
1:47:26the entire world but I said uh the if I
1:47:30have that aspiration that I want to make
1:47:31something I can at least attempt making
1:47:33a brand for myself which
1:47:37if success is there in destiny then I
1:47:40can make it a global brand
1:47:42>> and that's how the thought of Glenwok
1:47:44came into my mind
1:47:48before Glenwok in fact I had launched a
1:47:50gin M
1:47:54>> it was called Sochi
1:47:56>> with no celebrity with no one and it
1:47:59tanked
1:48:01>> so I have had my share of uh you know it
1:48:04it never picked up I don't say it tanked
1:48:06it never picked up
1:48:07>> no because there no marketing
1:48:09>> there was no marketing it there was it
1:48:11was a beautiful product my friends till
1:48:13today remember the gin and I and I know
1:48:16I will launch that gin again someday
1:48:20probably probably next year right now
1:48:22probably is a wrong time because I have
1:48:24my hands full but next year I will
1:48:26launch that gin back with someone and I
1:48:28know that gin will do very well because
1:48:30the product was very beautiful but for
1:48:33some reason I couldn't uh really and I
1:48:36was thinking then if this failed should
1:48:39I stop or should I so I said why not get
1:48:41into the best category that is what
1:48:43India really likes you'll be surprised
1:48:4675% of India drinks whiskey
1:48:50So
1:48:51India is really a whiskey market. So I
1:48:54said why not make something what India
1:48:58has maximum consumption of. I mean gin
1:49:01is probably one or 2% consumption in our
1:49:04country. So I said let's try our hands
1:49:07on that. So I once I got the product
1:49:09here as I said I imported it. My first
1:49:12call because on my speed dial was only
1:49:15one celebrity I knew and uh I was
1:49:19friends with was someone whom I could
1:49:21just call directly and say bro can I
1:49:24drop in can I come home
1:49:27and uh I told him I said bro I've made
1:49:30something and I want you to see it I
1:49:31want you to try it and uh I have
1:49:35something that I want to talk to you he
1:49:36said come home come home for lunch and
1:49:38uh I sat with him I showed him the
1:49:41bottle
1:49:43And I knew that
1:49:46Glenwok
1:49:47was for the masses who could not upgrade
1:49:51or who wanted to upgrade. So it was for
1:49:54the masses and Sanju is clearly a mass
1:49:57hero. He's clearly someone the mass
1:50:00loves him.
1:50:02So
1:50:04when I showed him and he was like, "You
1:50:07think I can carry this?" And I said,
1:50:09"Bro, I really think you can do this."
1:50:11And he was like, "Chilliff, if you're
1:50:13saying, let's do it."
1:50:15>> It took me about
1:50:172 hours of brainstorming with him.
1:50:20>> Then he asked me questions. How would
1:50:22we, you know, kind of how the production
1:50:24go and the quality has to be, you know,
1:50:27mosham giving my name and I said, "Don't
1:50:28worry about that. You know me since now
1:50:3020 years, 25 years."
1:50:32>> And that's a trust that he has on me.
1:50:34And he trusted me. And he said, "Bro,
1:50:35you're doing it. Shalom. I'm on." M
1:50:37>> and let's do it.
1:50:39>> That's how that's it.
1:50:40>> Got it. Okay. Here's my last question,
1:50:43which is
1:50:46if some entrepreneur is watching this
1:50:48and they want to build a business now
1:50:50based on your
1:50:52understanding of what's going on in the
1:50:54world and what are the opportunities?
1:50:57What would be one opportunity that
1:50:58somebody can start today to build a
1:51:01really big business
1:51:03>> in the liquor space? any space up to you
1:51:05which you feel is a is an opportunity
1:51:07which you are not able to do right now
1:51:08or maybe you're not doing but you feel
1:51:10there's a big business to be built
1:51:12>> in India
1:51:15>> someone sitting in India 25 year old mo
1:51:18version want to build a van
1:51:21wants to build a brand
1:51:24>> see the first thing is if someone wants
1:51:26to really make it big how big I don't
1:51:29know but if someone wants to make it
1:51:31decently
1:51:35A obviously your intentions and hard
1:51:38work and all of that is is a given that
1:51:41you need to have that
1:51:43>> and your dedication what you want to put
1:51:45in that all is fine but
1:51:48should have enough money that he can
1:51:50pull off the business for at least for
1:51:52the first 3 years on by himself. He
1:51:55should not start a business thinking
1:51:58that he would
1:52:01if he does well he'd get investors in
1:52:03the next 6 months. I think most of the
1:52:05businesses fail there
1:52:07>> but give me be very specific and give me
1:52:09an example of what kind of business
1:52:11somebody should build and how much money
1:52:13would it take them to build today
1:52:15something which you feel is an
1:52:16opportunity. See, I'm completely in the
1:52:18FNB space. So, I think FNB completely
1:52:21suits. I I really cannot comment on
1:52:24something else which I'm not parting in
1:52:27food and beverage. If you talk about
1:52:28alcohol, see, you need deep pockets to
1:52:30sustain. When I'm saying 2 years, 3
1:52:32years, be by yourself.
1:52:34>> Uh either be committed to be a local
1:52:36brand, regional brand. If you have less
1:52:38money and you want to do alcohol, it's a
1:52:40great business. But then don't try and
1:52:43jump cities unless you have the backing
1:52:46for yourself because don't bank on
1:52:49any investor coming in early because
1:52:52either he's going to take maximum equity
1:52:54back from you
1:52:55>> and you'll be internally working
1:52:57>> and you'll at the end of the day you'll
1:52:59be working for him
1:53:00>> which is also not good.
1:53:02>> So have enough money that you can
1:53:04sustain the business but run it only
1:53:07regionally till you prove your numbers.
1:53:09That's one mistake what people do is
1:53:12they go all across the country
1:53:16>> thinking that they can expand too soon
1:53:19and investors will bang them in the next
1:53:216 months
1:53:22>> which they fall flat on. So definitely
1:53:25liquor is good. B I would say if you
1:53:28don't have a capacity to open a
1:53:29full-blown restaurant
1:53:31>> then start with
1:53:32>> QSRs. So I think uh if if someone wants
1:53:35to look and doesn't have the capacity to
1:53:37do a full-blown restaurant QSR I don't
1:53:41think there's any branded QSR across the
1:53:44city yet
1:53:47>> as a food chain
1:53:48>> what food
1:53:50>> could be burgers could be fries could be
1:53:54>> McDonald's and stuff at
1:53:55>> McDonald's is is again a restaurant I'm
1:53:57seeing a QSR
1:53:59McDonald's is again
1:54:00>> Jumbo King would be there no
1:54:02>> jumbo booking is a QSR
1:54:05>> that sells vap.
1:54:10But where do you see them?
1:54:12>> Outside airports now.
1:54:14>> That's it.
1:54:15>> But where do you see them? I'm saying in
1:54:17your city in in Bandra in Andhiri where
1:54:20do you see them in Pavay? Can you really
1:54:23see them? Do they have 75 80 100
1:54:25locations? I don't know.
1:54:26>> So you think there's an opportunity?
1:54:28>> There is an opportunity opportunity of
1:54:29QSRS definitely. And what specific food
1:54:33do you think India will be eating right
1:54:34now and would want to be eating
1:54:36>> rolls?
1:54:38There's an opportunity you feel that's
1:54:40somebody some somewhere should be
1:54:42building this. I really like this. I
1:54:45wouldn't call it quick service
1:54:46restaurant. Maybe quick service
1:54:47restaurant only. Uh something like
1:54:49Benet. I really think what Ben has done
1:54:52is incredible. I love their taste.
1:54:54They're expanding fast. Akil is an
1:54:55incredible person.
1:54:57>> But again, that's an expensive
1:54:58>> that's an expensive morph. But
1:55:02That's not like very expensive affair. I
1:55:04think South Indian food by itself was
1:55:08long due when you know the ship sagas of
1:55:10the world we've already had but that
1:55:12never upgraded
1:55:14>> and they were always
1:55:16built to suit a palette of a region like
1:55:19Bombay saga Bombay dosa it's not
1:55:24authentic
1:55:25it's not authentic dosa
1:55:27>> so Ben is trying to do that and they are
1:55:31I see Pandra Ju and now
1:55:34I think town they start Delhi maybe
1:55:37>> there's this brand called Hati Cafe Cafe
1:55:40in Bangalore.
1:55:41>> Yeah. Yeah.
1:55:41>> I think that's not something that's
1:55:43there in in Bombay.
1:55:45>> So if you also look at that as a QSR and
1:55:49want to build that as a coffee shop but
1:55:50not as a coffee shop as a QSR
1:55:53>> can be built aggressively.
1:55:55>> So like you're not the only one. So many
1:55:58people have said this to me and they're
1:56:00talking about it.
1:56:03regional
1:56:05and make it national or pick up
1:56:08something like Korean something
1:56:09international only QSR has an
1:56:12opportunity
1:56:13>> see Korean still has a has a play you
1:56:18know
1:56:18>> Korean will not do in Mira I'm just
1:56:21saying
1:56:22>> it might not do in Daisir it might not
1:56:24do well where because there's a taste
1:56:25profile
1:56:26>> but
1:56:27>> but something that is Indian and
1:56:29regional will any which ways do well the
1:56:32chances of uh you know you uh being
1:56:36successful are are higher
1:56:38>> okay than a Korean because then the
1:56:41scalability will be I think kind of
1:56:44reduced
1:56:45>> healthy
1:56:46food will be a thing quick healthy food
1:56:49or you don't think [snorts]
1:56:51>> quick healthy also is an option
1:56:54>> it will be why not
1:56:57>> because that's something which I feel is
1:56:59probably missing in India India salad
1:57:01eating
1:57:02But the only change I've seen in US
1:57:06probably or New York specifically, it
1:57:08may be a city specific
1:57:22that is
1:57:25so salad I think New York has really
1:57:28upped their game and all around the
1:57:30world vegan salad.
1:57:32So I think food changes all around. So
1:57:36do you think India salad is becoming a
1:57:38thing?
1:57:39>> India salad is becoming a thing but I
1:57:42think the amount of healthy bread
1:57:45options that we're getting people are
1:57:46also moving towards that. Huh?
1:57:49>> Because we need I think we eat carbs
1:57:52like no one's business. So I think
1:57:54[laughter]
1:57:55healthy breads is is really gone crazy
1:57:58with uh our country.
1:57:59>> Got it.
1:58:00>> And uh you go to these bougie cafes and
1:58:03all over the world and you get so many
1:58:05sardo breads and these breads and you
1:58:07know earlier you only had those limited
1:58:09multigrain and today you have so many
1:58:11more
1:58:12>> that you're spoiled for choice. No.
1:58:15>> And they kind of give you the same
1:58:18>> Yeah. Now
1:58:18>> calorie count.
1:58:19>> 50 protein bars.
1:58:20>> Yeah. [laughter] And they kind of give
1:58:22you the same calorie count. So I think
1:58:25>> it's better that way than having salads.
1:58:27>> True. True. Well,
1:58:29>> better to but easier for people to do
1:58:32it. Fair. All right. Well, thank you so
1:58:34much.
1:58:34>> Thank you. Thank you.
1:58:35>> I had an amazing time. I didn't even
1:58:37know that we were recording a podcast
1:58:39today. [laughter]
1:58:40It was fun.
1:58:41>> Hi. How are you?
1:58:42>> Good.
1:58:43>> Good to see you, sir. Please
1:58:45>> thank you.
1:58:46>> Tell me what is a friendship profile you
1:58:48have.
1:58:48>> I in fact told them
1:58:50>> that I want to do this venture.
1:58:52>> M
1:58:53>> and uh so there were seven friends
1:58:56>> and I invited all seven to do a
1:58:58restaurant with me.
1:58:58>> Nice.
1:58:59>> So it was a 10,000 ft² space that we
1:59:01took in Phoenix at Palladium
1:59:04>> the backside Phoenix
1:59:06>> in 2003.
1:59:08>> We opened a 10,000 ft² three brands of
1:59:10restaurants. So seven friends of mine
1:59:13all got together. So today when we shut
1:59:15that somehow all became restaurantters.
1:59:19[laughter]
1:59:20Thank you so much for watching this
1:59:22episode till the end. Now you have to do
1:59:24three things. Number one, subscribe to
1:59:27this channel right now. The more you
1:59:29subscribe, the better the guess we will
1:59:31be able to get for you. Number two,
1:59:34please comment and let us know what did
1:59:36we do wrong and what did we do right
1:59:38because the more you give us feedback,
1:59:40the better we will be able to make
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1:59:45please share this episode with at least
1:59:47one person because one conversation can
1:59:50change someone's entire life. I'll see
1:59:52you next time. Until then, keep figuring
1:59:54out. [music]
2:00:03[music]

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