Reiterate SELL on United Spirits (UNSP) and initiate coverage on Radico Khaitan (RDCK) with a BUY, driven by more visible improvement in business trajectory and relatively affordable valuations. Indias liquor industry looks attractive on a top down basis, presenting a strong case for long term investors. High barriers to entry, inelastic demand (?), increasing social acceptance and premiumisation provide most of the rationale for this view. A closer look, however, reveals structural pain that dampens both volume and value growth. The industry remains at the mercy of a quagmire of state-specific regulations, ever increasing taxes, price control, distribution model changes and political interference.