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Old Monk maker tells Bombay High Court Maharashtra has lost ₹300 crore in excise revenue since May plant shutdown
Our read
Expect a court-supervised, relabelled restart within months rather than a clean FSSAI win, with the ₹300 crore excise loss still growing until then.
For operators
With the Khopoli plant shut since May and FSSAI having rejected its labels twice, Old Monk supply is uncertain, so rum buyers should line up substitute brands and watch Monday's Bombay High Court hearing, where the maker has offered to drop the "7 Years Old Blended" tag.
Watch
FSSAI approval of the revised label without the "7 Years Old Blended" tag before Monday's hearing would mean Khopoli restarts and the excise loss stops growing.
Ask next
The report,
Mohan Rocky Springwater says FSSAI has rejected its Old Monk labels twice over rum flavouring, and about 300 workers at its shut Khopoli plant are idle. The company's counsel said Maharashtra is the only state to ban the brand.
- Excise revenue lost since May, per company
- ₹300 crore
- Workers idle at Khopoli, per company
- 300
- Share of rum sales, claimed by company
- 88%
Reported figures
From the report. Source details below
| Share of rum sales claimed by Old Monk maker: | 88% |
|---|---|
| Label tag offered to drop: | 7 Years Old Blended |
| FSSAI label rejections: | twice |
Why it matters for the brand
A company claiming 88% of rum sales is stuck on a single-plant labelling dispute and is already offering to give up its age statement, which makes regulatory and label-compliance diligence the main lever in any partnership or valuation talks.
What to track next
- Bombay High Court order on interim production or label relief
- A third FSSAI rejection or fresh objection on rum flavouring
- Announced Khopoli restart date and return of the roughly 300 idle workers
- Rival rum brands gaining shelf share in Maharashtra outlets
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Mohan Rocky Springwater is likely to press the Bombay High Court for interim relief, citing the ₹300 crore excise loss and about 300 idle workers.
- FSSAI is likely to defend its two label rejections on the rum flavouring ground, and may accept a revised label only if the flavouring declaration is fixed.
- Maharashtra's excise authorities may signal support for a quick resolution, since the state is bearing the revenue loss.
- Rival rum makers are likely to push for extra distribution and shelf space in the gap left by the company, which claims 88% of rum sales.
- Expect the company to offer further label concessions beyond the age tag if the court signals FSSAI's objection is not purely about the label.
The counter-case
The case against this reading — not reported by the source.
The headline repeats a litigant's number as if it were established fact. The ₹300 crore excise loss is Mohan Rocky Springwater's own claim in a court filing. It is meant to pressure the court and the state into granting relief, and nothing in the signal shows that Maharashtra or an independent party has verified it. The company also says it holds 88% of rum sales, which is another self-reported figure that makes its plant look indispensable to state revenue. Gross excise 'lost' is not net revenue lost: consumers who cannot find Old Monk probably switch to other rums, whisky or other spirits, and these are taxed too, so the real fiscal hit is likely well below the headline. The substance of the dispute is also weak for the company. FSSAI has rejected its labels twice over rum flavouring, which points to a compliance failure rather than regulatory overreach. The offer to drop the '7 Years Old Blended' tag before Monday's hearing reads as a concession on a weak position, not a sign the regulator is being unreasonable. The story is a single-company, single-plant dispute with a hearing still pending, so it says little about retail brands or the wider spirits sector. The 'down' delta presents a contested litigation figure as an observed market fact.