At 42 years old, Kalpana Aggarwal has earned herself a new title: she’s now known as the “Liquor Queen” in Indirapuram, Ghaziabad. Within the vibrant landscape of bustling malls, renowned clothing outlets, and crowded streets, her distinct “model liquor shop” catches attention, bearing her name boldly displayed at the entrance. As patrons step into her store, they often gaze at Aggarwal with bewilderment – whispers ripple through the air, expressing surprise at the sight of a woman managing a liquor establishment.

Uttar Pradesh is undergoing a transformation on multiple fronts. It has now become the alcohol hub of India, leading the nation in both the production and sales of both potable and non-potable alcohol.

Aggarwal launched the store in 2020 after finding herself stranded in Ghaziabad with her husband, Dilip Kumar, during the COVID-19 pandemic. It was during this time that Aggarwal, who had previously resided in Gwalior, Madhya Pradesh, learned about the changes in the Uttar Pradesh excise policy through a friend. This marked her second endeavor to break into an industry traditionally dominated by men. In 2014, when she first attempted to secure a liquor license, she faced opposition from well-established players and ultimately decided to withdraw, as she recalls.

Uttar Pradesh’s Liquors Market:

“The amendment in the excise policy by the UP government has overthrown the monopoly of the big players and has made it possible for small business persons like us to enter the liquor field,” says Aggarwal.

Dressed in a sky-blue salwar kameez, Aggarwal remains unfazed by the whispers as she occupies her position at the counter, exuding the confidence of a true leader. She warmly welcomes customers and oversees the store’s operations. During the evenings, she is often spotted taking calls to organize liquor for women’s kitty parties and discreetly serving those who desire alcohol delivered to their homes. She expresses her disappointment at the fact that the Uttar Pradesh government still does not permit women to work as salespersons in this industry.

Senthil Pandiyan, Excise Commissioner, Uttar Pradesh, said “Karnataka is now a distant second. Our policy completely moved the industry from a license fee-based system to consumption-based system to break the monopoly.”

Uttar Pradesh has emerged as a prominent center for liquor. Across Noida and Ghaziabad in the NCR, the landscape is adorned with sophisticated stores camouflaged as liquor malls, vibrant ahaatas, and microbreweries that mirror the trend in Gurugram. Ranging from The Weekend model outlets to in-house beer labels like Campai, alongside the recent launches of Winery and the Regina brand in Muzaffarnagar, Uttar Pradesh is deeply involved in this industry. The visible growth translates into substantial figures, indicative of the state’s soaring success.

Liquor Sales Under BJP:

In the fiscal year 2023, the state amassed excise revenues totaling INR 42,250 crore, a remarkable surge compared to the INR 14,000 crore recorded in 2017-18, coinciding with the ascension of the BJP and Yogi Adityanath‘s tenure. Uttar Pradesh has outpaced Karnataka, a benchmark state in liquor revenue, to claim the top spot. However, akin to Karnataka, UP lacks a Bengaluru – the IT hub bustling with affluent young adults who frequent bars and host home parties.

Not too far in the past, liquor sales in Uttar Pradesh were associated with uninviting shops featuring imposing black grills and a reputation for questionable alcohol quality. Someone from Delhi would frequently cringe at the idea of consuming liquor produced in Uttar Pradesh. Nowadays, sophisticated liquor outlets, boasting upscale furnishings, can be found scattered throughout Noida and Ghaziabad. It’s evident that the liquor culture in UP is undergoing a remarkable transformation.

In contrast to Delhi’s contentious excise policy of 2022-23, where licenses were distributed to liquor traders via open bidding, which raised concerns of favoritism and the formation of cartels, Uttar Pradesh employs an e-lottery system that provides opportunities for smaller players to participate in the industry.

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“Karnataka is now a distant second. Our policy completely moved the industry from a license fee-based system to consumption-based system to break the monopoly. We also restricted the number of shops to two per person. The allotment pattern was changed to the e-lottery system from the earlier auction-based model. We have used technology to put track and trace systems in place. And this all has happened with the support of CM Yogi Adityanath,” said Senthil Pandiyan, Excise Commissioner, Uttar Pradesh.

During meetings with the Chief Minister, the excise department officers in Lucknow often encounter a challenging scenario. They strive to minimize the usage of the term “liquor” as they discuss the beverage and its associated policies.

“Yogi ji does not like the word. He makes a face whenever we say it,” says an official in the UP government, on condition of anonymity, laughingly.

The officers assert that Chief Minister Yogi has complete confidence in their abilities and has granted them significant autonomy to reform the excise policy. An official within the state excise department reveals that it was the Chief Minister’s initiative to eradicate liquor smuggling, leading to the establishment of the track and trace system.

“Had revenue not been the reason, Yogi ji would have himself formulated a ban on liquor policy. The CM doesnt like the word liquor but he wants and loves revenue,” said a UP govt official.

Presently, every vehicle transporting liquor is meticulously tracked, starting from its entry point and extending to its exit. These vehicles are also subject to geofencing and digital locks, as described by Pandiyan.

However, whenever Yogi ji is informed about matters related to alcohol, he closes his eyes and simply responds, “alright, go ahead,” as disclosed by another anonymous officer in the department.

Chief Minister Yogi is recognized for his strong opposition to liquor. Notably, he recently declared a prohibition on both alcohol and meat consumption in Ayodhya.

Nonetheless, officials hold the view that enforcing a liquor ban would be ineffective and unwise, potentially impeding the state’s progress. It is understood that the Chief Minister has come to this realization.

“Had revenue not been the reason, Yogi ji would have himself formulated a ban on liquor policy. The CM doesnt like the word liquor but he wants and loves revenue,” says the officer quoted above.

Reddy and Pandya:

However, not if it means tolerating corruption, emphasized the former Principal Secretary Reddy. Reddy and Pandya are recognized as the two individuals responsible for the revamped excise policy.

“Everything is decided by the Cabinet. The CM didn’t want people to die of consuming spurious liquor. There are no incidents of spurious deaths in recent years. You cannot stop people from drinking. That’s been happening since Sanatan Kaal such as Bhaang,” says Reddy.

From 2017 to the present, the state has witnessed the establishment of 25 new distilleries and two breweries. Significant districts such as Gautam Buddh Nagar (encompassing Noida and Ghaziabad), Lucknow, Gorakhpur, Kanpur, Ghaziabad, Agra, Varanasi, and Prayagraj have consistently contributed over INR 500 crore annually to the revenue generation since 2017.

“Uttar Pradesh’s revenue is heavily dependent on liquor. While GST contributes over 50 per cent of the state revenue, excise adds to a sizable 22 per cent. Losing such a sizable revenue will affect the welfare policies in the state,” says an official, on condition of anonymity.

In the elegant The Weekend liquor store located in Noida’s sector 104, you’ll find a designated wine cellar tucked in one corner and a selection of premium liquor brands in another. The opulent interior features stylish furnishings bathed in a warm glow of white-yellow lighting, with a well-dressed salesman in a black suit and trousers offering expert guidance, creating a mall-like shopping experience.

“It’s like a liquor mall,” beams a customer who has arrived with his son for their first visit.

Near the store’s entrance, a staircase guides visitors to BYOB (Bring Your Own Booze) – a spacious lounge designed in the style of Gurgaon aahatas, but notably more opulent. It features plush sofas, cozy chairs, an LED screen, and an open area for smoking and savoring the outdoor vista. Women can be observed indulging in their leisure with ease.

Saurabh Goyal on Uttar Pradesh’s Liquors Market:

The first branch of The Weekend was established in 2020 after its owner, 52-year-old Saurabh Goyal, was captivated by the open seating arrangements at liquor stores in Gurgaon. A native of Dadri, Goyal wanted to bring this concept to Noida. Having previously been involved in the fine dining business, he recently ventured into the liquor industry.

“That’s when I went to Lucknow and met then Principal Secretary Sanjay Boose Reddy and Commissioner Senthil Pandiyan. I put forth my proposal and they readily agreed. And I got my license within a month,” says Goyal sitting on a sofa in his luxurious office in Noida Phase 2.

Following The Weekend’s success, Goyal expanded his business by launching three additional stores—a second one in Noida and three more in Ghaziabad. Given that the excise policy permits only two stores per individual, Goyal enlisted the support of family members. As a result, he currently operates two stores in his wife’s name.

His rivals often refer to Goyal as the “next Ponty Chadha,” highlighting his significant aspirations to become a “liquor baron.”

“Goyal is the only one giving competition to Ponty Chaddha,” says Madhur Gupta, who owns Ghaziabad’s first microbrewery, jokingly. Goyal’s The Weekend also has a microbrewery to its name in Noida.

Uttar Pradesh is home to just three microbreweries, all of which were founded in 2022. They are situated in Ghaziabad, Noida, and Agra, respectively.

Goyal’s current objective is to expand the brand to Lucknow, yet the emerging “Ponty” might have to exercise patience for the time being.

“I have made several rounds to Lucknow but they are not accepting my proposal. If a brand is giving a good business, luxurious experience to the customers, the excise department should let such a brand excel,” says Goyal.

However, the officials find themselves in a challenging situation. Insiders within the Uttar Pradesh government have indicated that political pressures are a significant factor contributing to the sluggish growth of high-end liquor stores.

“Elections are round the corner and the top leadership doesn’t want liquor stores to become an issue. Noida and Ghaziabad are next to Delhi and such stores are needed there. A walk-in liquor store in Lucknow can be a source of backlash,” says an official requesting anonymity.

According to the officials, approximately 85 percent of the excise revenue is derived from the sale of alcoholic beverages in the state.

“Almost 10 per cent of the revenue comes from different kinds of license fees of shops, retail as well as wholesale, and the rest is from other receipts that include import fees, export pass fees, processing fees, regulatory fees, bar license fees, composition money and all other items,” says Reddy.

Sanjay Gupta Statements:

Sanjay Gupta, a resort owner in Muzaffarnagar, was inspired to establish a boutique winery, the first of its kind in North India, after attending a promotional event organized by the excise department at Hyatt Lucknow, aimed at attracting investors in the liquor industry. During the event, which was attended by individuals from the liquor industry, Gupta stood out as a unique participant.

“I had never done a liquor business. I have a resort on Muzaffarnagar highway and was producing sanitizer in Covid. That’s how I got in touch with the excise department,” Gupta recalls.

Following the event, Reddy reached out to Gupta and persuaded him to initiate a winery.

“The department said that I don’t have to pay an excise fee for five years so I agreed. Within three days, Boose Reddy sir got me the license,” says Gupta.

According to the officials, the winery’s objective is to utilize sub-tropical fruits like lychee, mango, jamun, and oranges for wine production. They are currently in the process of identifying districts with the highest fruit cultivation to establish wine production units in those areas.

“This way, farmers will get the right price for their produce and the state will generate employment and revenue through the sale of wine,” says Pandyan.

Gupta, who has invested INR 4 crore in setting up the winery, will soon introduce the wine for sale under the brand name Regina.

“In a few days, the sticker (label) and brand name will be approved and I will start selling bottled wines,” he says.

“Several states such as Kerala, Haryana, Maharashtra, Karnataka have adopted various components of our policy. The first thing we did was ease of doing business. Stages of getting a license were reduced. We moved everything online. No one has to come to our office. Earlier, offline there was corruption. We decentralised power to district collector and excise commissioner,” Reddy says.

“The premium retail vendors’ models were picked by other states. In 99 per cent malls, we have premium retail vends. And we have female saleswomen there to guide women. In these vends, you can go check, taste and decide liquor for yourself,” said Reddy.

For the connoisseur of liquor, the UP government is looking at something called ‘home bar’. The excise department officials say that a consumer has to pay a license fee of INR 11,000 with some minimum deposit and they can have a home bar license. “You can keep 50-60 liters at home,” say officials.

Vedant Chopra:

Vedant Chopra, who was a mere 23 years old when he presented the idea of launching a brewery in Banaras to Pandyan three years ago, had recently returned from the United States. His time in the US had exposed him to the craft beer culture, and he aspired to bring a similar experience to Banaras.

Currently, he markets bottled beer under the label “Campai,” which was selected as the official beverage partner for the inaugural MotoGP Bharat event held in Noida. When Vedant returned to India during the COVID-19 pandemic, he began crafting limited quantities of beer at home before eventually setting up a brewery on a 1,000 square meter plot of land.

“In Banaras, we have no choices at all. Branded beers stay in Delhi, Noida and other metro cities. Brands like Bira, Hoegaarden and others can’t be found here. So, I wanted to produce craft beer in my city,” says Vedant, whose Wallop Brewery has recently partnered with Japanese beer company named Ise Kadoya.

Vedant recalls that three years ago, only a few people took his craft beer concept seriously. However, Joginder Singh, a statistical officer from the excise department, embraced the idea.

Vedant, owner of Wallop Brewery, said “In Banaras, we have no choices at all. Branded beers stay in Delhi, Noida and other metro cities. Brands like Bira, Hoegaarden and others can’t be found here. So, I wanted to produce craft beer in my city.”

Mahesh Ahuja, the proprietor of two model liquor stores, one in Ghaziabad and another in Hapur, has been actively involved in the liquor industry since 1993. He has witnessed numerous changes and developments in the liquor sector of Uttar Pradesh over the years.

Seated in his office in Ghaziabad, Ahuja reminisces about the introduction of the lottery system in 2000 during the Rajnath Singh government. At that time, Ahuja operated a liquor store in Ghaziabad. However, in 2007, he decided to close down his business when Ponty Chaddha established a dominant presence in the state’s liquor industry, causing financial hardships for small entrepreneurs. Ahuja subsequently relocated to Rajasthan and initiated a business venture in Jodhpur.

“For some time, the lottery system was there, after which there was a tender system and the tenders often went to the government favorites. And again, the monopoly started and Ponty Chaddha became all big. It was very difficult to enter the liquor business without facing heat from the Chaddhas,” he recalls.

Seated in front of a prominent backdrop featuring a poster adorned with whiskey bottles, Ahuja explains how the policy alterations in 2017 paved the way for his reentry into the business.

“People in liquor business keep an eye on the changes in excise policy and plan their business accordingly. So, when I learnt about UP, I came back. Applied for the e-lottery system and got my license,” says Ahuja. He had moved to Rajasthan and had opened a liquor shop in Jodhpur.

While acquiring a license wasn’t the most challenging part, the recurring yearly license renewals proved to be a significant concern. Ahuja and his fellow entrepreneurs convene monthly to deliberate the issues affecting their industry. They have consistently addressed these concerns during meetings in Lucknow but contend that the government has not yet acted upon their requests.

“When the government knows that they are in power for five years, they should also give licenses for five years. Every year, we live in fear of what new excise policy has to offer or whether our licenses will be renewed or not,” says Ahuja.

Reddy, on the other hand, mentions that the licensing issue is not exclusive to Uttar Pradesh. The policy for licenses is typically annual.

Just three kilometers from Ahuja’s store, in Indirapuram, Kalpana Aggarwal checks her WhatsApp messages. As Navratras draw to a close, she has received orders from a dozen women. Some of them request home delivery of liquor, while others ask her to set aside their preferred brands. Aggarwal notes that it’s 9.40 pm, and a few female customers have recently arrived home from work. They’ve asked her to reserve some alcohol for them, but she has declined their requests.

“You can’t keep the shop open beyond 10 pm. Yogi ji should extend the timings at least in NCR till 11pm. Women need alcohol to juggle between the several roles,” Aggarwal laughs.