Heineken, Diageo and Other Global Liquor Giants Seeks ₹2,985 Crore Payment from Telangana

Three industry bodies representing liquor producers Heineken, Diageo and Pernod Ricard have asked the Telangana government to clear unpaid bills worth ₹2,985 crore ($337 million), as per Reuters.  

The dues have been pending since May 2024. Reportedly, the request was made through a letter sent on November 12, 2025, stating that the delays are affecting day-to-day business. 

Supplies Depend on State-Owned Depots 

In Telangana, alcohol companies are not allowed to sell directly to retailers. All supplies must go to government-run depots, and the state pays manufacturers after selling to shops. Because of this structure, delayed payments by the government hold up the entire supply chain, leaving companies waiting for funds despite completed deliveries. 

Rising Demand Without Timely Payments 

The unpaid amount comes at a time when demand normally increases. The letter said alcohol sales in the state typically jump by around 75% during the festive period, requiring companies to maintain higher stock levels. Without payments, producers find it harder to manage production schedules, transport, and supplies to depots. 

Earlier Supply Halt Adds Pressure 

This is not the first dispute over delays. In January 2024, United Breweries, majority owned by Heineken and known for Kingfisher beer, temporarily stopped supplying to Telangana to protest overdue payments. That halt was short-lived, but it highlighted how financial delays can immediately affect availability in the market. 

Industry Bodies Cite Operational Difficulties 

The letter was signed by the Brewers Association of India, the Confederation of Indian Alcoholic Beverage Companies, and the International Spirits and Wines Association of India. It noted that delays in both old and current payments were becoming difficult to manage, adding that some companies may struggle to continue operations if payments remain blocked. 

Read More: Best Liquor Stocks in November 2025: Tilaknagar Industries, Globus Spirits, and More Based on 5Y CAGR! 

Conclusion 

The request for dues reflects how state-controlled purchasing affects the industry in Telangana. Clearing the overdue amount would help avoid gaps in supply and keep routine business running in one of India’s highest alcohol-consuming regions. 

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