₹75 lakh in profit: What it really takes to open a liquor store in India

Produced by: Manoj Kumar

Cash Magnet

Liquor stores in Tier 1 cities can rake in ₹9–15 crore a year, with net profits touching ₹75 lakh annually if run smartly.

Fat Margins

Gross margins hover around 20%, and after rent, staff, and ops, you can still walk away with a solid 9% net profit.

Quick Payback

With a 73% ROI and a 1–2 year payback window, liquor retailing beats many other brick-and-mortar investments.

Capital Crunch

Starting costs are steep—₹50 lakh to ₹1.1 crore upfront for licences, rent, stock, and compliance, just to open doors.

Licence Maze

State rules vary wildly. A licence in one city may cost ₹2.5 lakh, and ₹10 lakh just across state lines—for the same business.

Red Tape

Expect delays. You’ll navigate NOCs, local clearances, and slow-moving portals—often with tech glitches and unclear steps.

Scarcity Trap

Some states offer limited licences via quota systems. Even with funds and paperwork, you might still walk away empty-handed.

High Stakes

Location rules are strict. Open too close to a school or temple, or miss a dry day, and you risk revocation—and total loss.

Heavy Oversight

Constant government audits, compliance pressure, and surprise inspections keep you on edge and your paperwork airtight.