New Delhi: The term ‘Indian Made Foreign Liquor’ (IMFL) is a ubiquitous phrase in India’s alcohol industry, but few know the origin story of this unique nomenclature, which is credited to an early pioneer of the business: Vittal Mallya.
The story is inextricably linked to the United Breweries (UB) Group, a company that has been a frequent subject of national headlines, notably under the tenure of Vittal’s son, Vijay Mallya. While Vijay Mallya is widely known for controversies, including absconding amid legal battles over bank loan defaults and the 1998 gold plating of the Sabarimala Sree Dharma Sastha temple, the foundation of the modern enterprise was laid by his father.
United Breweries Limited, established by the British in 1915, was acquired by the then 22-year-old Vittal Mallya in 1947, immediately following India’s independence. Mallya became the first Indian director of the company and took over its reins as the British owners departed.
Post-independence, despite the local ownership, the liquor sold in India continued to be branded as ‘Foreign Liquor’—a term that often led consumers to believe the product was expensive. Vittal Mallya, recognising this barrier, devised an ingenious solution.
He capitalised on the fact that while the liquor was manufactured in India, it often used raw materials imported from abroad. Mallya then coined the brilliant phrase: ‘Indian Made Foreign Liquor’ (IMFL).
This seemingly contradictory label was a marketing masterstroke. It positioned the product as an ‘affordable foreign item,’ immediately appealing to local consumers who were now able to buy ‘foreign’ quality liquor at a lower price point. The abbreviation IMFL quickly became a familiar sight, and by 1959, the term was officially adopted in government records and advertisements.
The earliest details of this transformative period in the Indian liquor industry were documented in the 2014 book, The Vijay Mallya Story, by journalist K. Giriprasad.
Vittal Mallya ran the company until his death in 1983, after which his son, Vijay Mallya, then 28, took charge. Vijay Mallya later faced legal action for allegedly defrauding Indian banks of ₹9,000 crore and fled to the UK on March 2, 2016.
Nevertheless, the legacy of Vittal Mallya’s innovative coinage, IMFL, continues to define the landscape of the Indian alcohol market. The first UB distillery under Vittal Mallya was famously established in Kerala in 1959.
. Learn how Vittal Mallya's brilliant marketing strategy in 1947 revolutionised India's alcohol industry by creating an 'affordable foreign' category.){kind=link}