French spirits giant Pernod Ricard is confronting significant regulatory and tax challenges in India, its largest market by volume. The company faces a $300 million tax demand for allegedly undervaluing Scotch whisky imports over a decade to pay lower tariffs. Additionally, India's antitrust watchdog is investigating Pernod for allegedly colluding with retailers to exclude competitors. In 2023, Pernod was barred from renewing its Delhi liquor sale licence due to ongoing investigations, resulting in substantial losses. The Enforcement Directorate is also probing the company for allegedly participating in illegal profits from Delhi's 2021 liquor licence auction. Pernod claims that prolonged tax disputes since 1994 have hindered investment and disrupted supply chains in India. Despite these challenges, Pernod remains the largest spirits company in India by volume.
