Tamil Nadu to Introduce More Liquor Brands, Revamp TASMAC Outlets to Boost Revenue

The Tamil Nadu government is preparing a major overhaul of its liquor retail strategy, with plans to introduce a wider range of alcohol brands and upgrade TASMAC outlets across the state over the next six months. The move is aimed at enhancing consumer choice, curbing revenue leakage to neighbouring states, and improving the overall retail experience, The Times of India reported.

Officials familiar with the development told the English daily that the government has directed TASMAC to explore the introduction of popular beer and whisky brands currently available in neighbouring states and Union Territories. The initiative comes amid concerns that many consumers are travelling to places such as Puducherry and Bengaluru to purchase alcoholic beverages that are not available in Tamil Nadu.

Te state believes TASMAC is losing potential revenue due to the limited variety of products on offer, particularly in the beer segment. Authorities have reportedly instructed officials to reduce the dominance of a handful of locally stocked brands and create space for a broader selection of products that enjoy strong demand elsewhere.

The issue was discussed during a recent departmental review meeting, where officials examined ways to diversify TASMAC's portfolio and attract premium consumers. Several liquor manufacturers and distributors operating in neighbouring markets have already expressed interest in entering Tamil Nadu, officials said.

However, industry participation will depend largely on the state's excise regime. Companies seeking entry into the Tamil Nadu market will have to comply with the state's taxation structure, which is considered higher than that of some neighbouring states. In addition to excise duty, Tamil Nadu imposes sales tax, VAT and other levies on alcoholic beverages.

As part of the rollout strategy, new premium and imported labels are expected to be introduced first through TASMAC's elite outlets, which cater to higher-spending consumers and are equipped with better storage facilities. These stores already stock select imported beer brands sourced from countries including Sri Lanka, Germany, Bhutan and Austria.

Officials noted that imported products currently available in Tamil Nadu are largely confined to premium price brackets. Imported beer cans typically retail between ₹350 and ₹400 for 500 ml, while locally manufactured alternatives are priced around ₹200 to ₹220 for 650 ml bottles. The imported whisky segment remains even more limited, with most available brands sold only in larger bottles costing between ₹3,000 and ₹4,000.

The government also plans to modernise standard TASMAC outlets. Existing shops measuring around 250 square feet are expected to be expanded to nearly 500 square feet wherever feasible. Renovation works, including painting, improved storage facilities and better customer-facing infrastructure, have also been proposed.

Alongside efforts to strengthen revenue generation, the state has reiterated strict compliance with liquor regulations. The Commissioner of Prohibition and Excise has directed all FL2 (clubs) and FL3 (hotels) licence holders to strictly adhere to provisions under the Tamil Nadu Liquor (Licence and Permit) Rules, 1981.

Authorities have emphasised that no liquor should be sold or served to persons below 21 years of age. Establishments have been instructed to verify age through valid identification whenever there is uncertainty about a customer's age.

The government has also reminded FL2-licensed clubs that liquor service is restricted to registered members and their eligible guests. Clubs have been directed to issue membership identity cards and continue conducting recreational, cultural, sports and social activities as mandated under licensing conditions.

Officials further indicated that the department is undertaking administrative measures to plug revenue leakages, including the transfer of officers with alleged political affiliations. The government has warned that strict action will be taken against licence holders found violating regulations.

The twin strategy of expanding product offerings while tightening regulatory enforcement is expected to form a key part of Tamil Nadu's efforts to increase excise revenues and modernise the state's liquor retail ecosystem.