Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Exclusive: Amazon signals entry into alcohol delivery in India with nod in key state - document

Published 06/19/2020, 04:08 PM
Updated 06/19/2020, 05:55 PM
© Reuters. FILE PHOTO: Amazon logistics center in Lauwin-Planque

By Aditya Kalra

NEW DELHI (Reuters) - Amazon.com Inc (O:AMZN) has secured clearance to deliver alcohol in India's eastern state of West Bengal, according to a document seen by Reuters, signalling the U.S. e-commerce giant's first foray into the country's multi-billion-dollar sector.

In a notice on Friday, West Bengal State Beverages Corp, the authorised agency to carry out online retail of liquor trade in the state, said Amazon was among the companies found to be eligible for registration with authorities.

Alibaba-backed (N:BABA) Indian grocery venture BigBasket has also won approval to deliver alcohol in the state, the notice said.

West Bengal is India's fourth most populous state, with a population of more than 90 million people.

Amazon has been invited to sign a memorandum of understanding with the state, said the notice, which has not previously been reported.

Amazon did not respond to a request for comment. BigBasket also did not respond to a request for comment.

Amazon's interest in delivering alcohol in West Bengal marks a bold move to make inroads into a market that is worth $27.2 billion, according to estimates by IWSR Drinks Market Analysis.

Over the years, Amazon has expanded its e-commere operations in India as more and more people go online to shop for everything from groceries to electronics. The company has committed $6.5 billion in investments in India, one of its key growth markets.

India's top two food-delivery startups, Swiggy and Zomato, started delivering alcohol in some cities last month, as they looked to cash in on the high demand for booze as many states come out of a lockdown aimed at tackling the coronavirus.

India restricted liquor sales when it announced a nationwide lockdown in March. Hundreds of people queued up at liquor stores in May when some restrictions were eased, and the liquor industry had been lobbying with many states to allow online deliveries.

Each state sets its own alcohol sales policy. West Bengal last month invited companies to express interest for "handling electronic ordering, purchase, sale and home delivery of alcoholic liquors from licensed retail outlets" to eligible legal-age consumers in the state.

© Reuters. An employee of Amazon walks through a turnstile gate inside an Amazon Fulfillment Centre (BLR7) on the outskirts of Bengaluru

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.