India claims Pernod Ricard violated rules to boost market share

New Delhi — Pernod Ricard violated the liquor policy of India’s capital city by financially supporting retailers who in exchange stocked more of the French company’s brands and boosted its market share, the country's financial crimes agency alleges.

The documents are not public and details of the allegations against Pernod have not been previously published. In his bail document, seen by Reuters, Babu says his arrest was “illegal” and he played no role in Pernod’s decision to extend corporate guarantees. Babu could not be reached for comment and his lawyer did not respond.

Pernod counts India as a key growth market where it has a 17% share. While the market share for New Delhi alone was not available, industry sources say the capital is critical for any company as it is an affluent and urban tourist hub that serves as a showcase market.In exchange for financial support by Pernod, New Delhi retailers who received the loans “had to ensure” that 35% of the stocks in their shops would be Pernod products, the investigating agency said in its documents.

Under the policy, liquor manufacturers were barred from applying for the retail licences to avoid formation of syndicates that could lead to over-charging and brand pushing. One Enforcement Directorate document dated November 10 says: “The main motive of Pernod Ricard in cartel creation was to ensure that the retail shops of the cartel partners purchased higher quantity of Pernod Ricard brands ... in lieu of the financial assistance provided.”

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Uniqlo parent company to boost Japan wages up to 40%Uniqlo's parent company said Wednesday it would raise the wages of thousands of its employees in Japan by up to 40 percent to help it become more competitive globally.
Source: eNCA - 🏆 49. / 51 Read more »

Disney and billionaire Peltz battle as company denies seat to activist investorThe cofounder of Trian Fund Management called Disney a ‘company in crisis’ and urged it to cut costs and turn a profit at its streaming business Disney's woke agenda, seems to be costing it money.
Source: BDliveSA - 🏆 12. / 63 Read more »

International Public Art Festival takes over the Company's Garden in MarchThe International Public Art Festival (IPAF) is an annual art celebration of Cape Town's historically infused culture and diversity, hosted by Baz-Art NGO. Back for its seventh edition, IPAF brings art enthusiasts, vibe chasers and a collection of local and international artists together, all in the name of creativity
Source: CapeTownEtc - 🏆 17. / 63 Read more »

Cops searching for killers of Hammarsdale security company ownerPolice have launched a manhunt for the killers of a man who was gunned down in Hammarsdale, west of Durban.
Source: ecr9495 - 🏆 38. / 51 Read more »

Gas tanker company to help repair homes destroyed in Boksburg blast, says LesufiSome homes near the scene of the blast were destroyed and infrastructure was damaged. Is that it? Why aren’t your bridges marked with height restrictions. That puts the ball back in your court. Start repairing
Source: ewnupdates - 🏆 30. / 53 Read more »