Kerala State Beverages Corporation was established in the year 1984 and it is the monopoly wholesale purchaser and seller of Indian Made foreign Liquor, Foreign made Foreign Liquor, Wine and Beer in the state of Kerala. The Corporation holds FL-9 License exclusively under the Abkari Laws in the state for wholesale purchase of liquor produced by the bottlers and manufactures in the state or anywhere from India or abroad.
The IMFL, FMFL, Wine, Beer etc. purchased from manufacturer or Bottlers are stored in warehouses of the corporation situated at various districts of Kerala state. Retail sale are made through the shops run by Government agencies namely KSBC owned shops, Kerala state Consumer federation shops and KTDC Beer Parlours. Sales are also effected to private Licensees namely Bars, Beer and wine parlours, Clubs and to other licenses.
The KSBC, its Head office at Trivandrum and having 26 FL-9 warehouses (Wholesale depots) in different districts and the sales conducted through 270 FL1 retails shops owned by KSBC and 42 shops owned by Consumer fed. The sales are also done by private channels through about 985 Licensees which includes bars, Clubs and Beer and wine parlours.
Liquor purchase is made on replacement / replenishment basis from suppliers on the corporation rolls and the Purchase Orders are placed on the basis of average monthly sales of the respective supplier. The average monthly sales are reviewed every month and the order quantity based on the sales requirement of the corporation and it is fixed by the KSBC. The special purchase orders are also placed on trade discount basis depending upon the requirement.
Liquor sales are effected from the warehouses and KSBC FL-1 shops. Consumer fed shops, Bars, Clubs and Beer Parlour are authorized to purchase liquor from Corporations Warehouses. For the requirements of Liquor at KSBC shops is made through transfer of stock from warehouses as per the sales of FL-1shops.
KSBC inviting offers from liquor companies/Bottlers situated throughout the country for sale of IMFL, Wine, to KSBC under Rate contract. The offer document stipulates the conditions for supply, the quality specifications, payment terms, general conditions to be compiled etc. The offerors have also to submit an EMD of Rs. 12 lakhs for IMFL, Beer and Rs. 50,000/- for wine. The manufactures IMFL, Wine and Beer who intend to enter into the rolls of the corporation or supply additional brand throughout the year will be allowed to submit new or subsequent offers through E-tender portal of KSBC Website.
The rate contract agreement for supply of liquor is not a competitive tender. Each supplier has definite approved brands and only the approved suppliers who owns the brand can supply the respective brands to the corporation.
The quality of IMFL/Beer supplied confirm to the standards indicated in the offer conditions. For IMFL, the chemical examination certificate (duly authenticated by the Chief Chemical Examiner/Authority recognized by the state) and a certificate showing that ENA has been used in production by Chief executive of distillery authenticated by Excise authority should be sent to the corporation against dispatch of each batch of IMFL. For Beer, the chemical examination certificate should be authenticated by chemist/ brew master of the Brewery and duly authenticated by Excises authority of the Brewery.
The Companies are directly supplying stocks to KSBC depot and from the depot, the stock are lifted to KSBC retails shops, Bars, Consumer fed shops and other approved licensees. The Bar/Consumer fed, and the other licensee’s sale payments will come to suppliers on the weekly basis from KSBC. And the sales effected from KSBC FL shops the payments will come to suppliers on fortnightly basis. I.e.; the suppliers will get payment on the basis of the sales conducted at KSBC retails shops on fortnightly basis and the suppliers will also get payment for the sales made from warehouses on weekly basis.
The excise duty is to be paid by the suppliers and the amount is adjusted from the outstanding EMD amount lying with the KSBC, if the extra amount of duty is required the company has to remit the required amount to the KSBC’s Bank account. The excise duty adjusted in the permit shall be refunded to the suppliers on the receipt of stock at warehouses and the refund amount is add back to EMD account/Excise duty account of suppliers.
Average sale industry of IMFL in the state of Kerala 20 Million and 10 Million in Beer. Inside Kerala there are 19 bottling units supplying to KSBC and outside companies can supply from their units as well as can made tie up in local companies. If bottling inside Kerala from tie up units, the company can take separate registration and can bill in company’s invoice and for bottling inside Kerala there is no additional tax to be paid by suppliers.