Indian Alcohol Industry New
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Transcript of Indian Alcohol Industry New
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By: Ekansh
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Introduction
Between 15 and 20 per cent of Indian people
consume alcohol.
Over the past twenty years, the number of drinkers hasincreased from one in 300 to one in 20.
India is predominantly a hard spirits market and beeris a minority preference.
The Hindustan Times says that 65 per cent of theIndian liquor market is controlled by whiskeymanufacturers.
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The varieties of alcohol manufactured for
consumption in India are:1. Beer (5%-15%)
2. Country Liquor (more than 40%)
3. Indian Made Foreign Liquor (IMFL)
4. Wines (12%-16%)
The beer industry is highly regulated. 26 differentalcohol specific taxes constitute about 50% of theconsumer price which is amongst the highest in theworld.
Beer is actually taxed 60% more than hard liquor.
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Major revenue contributor to state govts hence it is unlikely
that the level of taxes or control would reduce.
In fact, courtesy the high duty levels, the Indian market hasnot been flooded with cheap imports.
Key IMFL consuming states-
Andhra Pradesh-18%
Karnataka-18%
Tamil nadu- 16%Kerala-8%
The state of Kerala stands first in per capita consumptionof liquor at 8.3 liters followed by Punjab 7.9 liters.
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Major Players
Diageo-Smirnoff, VAT69, Johnnie Walker.
United spirits Whyte and Mackay, Black Dog, Antiquity,White Mischief, Signature, Royal Challenge, McDowells,
Bagpiper.
SABmillers Haywards, Foster.
Radico Khaitan- 8pm, After Dark, Magic Moments,Contessa.
Pernod Ricard- Chivas, Seagrams Blenders Pride.
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Growth pattern
The Indian beer industry has been witnessing steady
growth of 7-9% per year over the last ten years.
The rate of growth of IMFL has remained steady inrecent years, with volumes passing 155 million cases
during the 2008 from a mare 70 million cases in 2002.
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2010-2011
Total Indian Alcohol industry-660 million cases
Beer-181 million cases
Distilled spirits-478 ml cases
IMFL-236 ml cases
Country liquor-242ml cases
Wine-Rs.6 billion
Case is defined as 12 bottles of 750ml for distilled spirits and
12 bottles of 650ml for beer.
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The sector grew at a compound annual growth rate of13.2% for the period spanning 2004-2008.
12% for the period spanning 2005-09.
18.9% for the period spanning 2006-10.
Vodka, the fastest growing IMFL segment registered aCAGR of 44.4% in the Past 5 Years.
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Wine
Indias wine consumption is rapidlyincreasing and is forecasted to growat a compounded annual growth rateof 27 per cent from 2010-12.
The consumption of imported wines will rise at a CAGR ofaround 33 per cent during 2010-2012, well above theindustrys overall growth.
The value of the Indian wine market is around 2 per cent ofthe total alcohol beverage industry.
In the next ten years the wine consumption could reachmore than 10 million cases.
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Scope
Consumption of alcohol has
saturated in many countries,
while India offers immense growth
opportunities. Rising disposable income.
Per capita liquor and beer consumption is extremelylow in India-hence latent demand potential.
Growing social acceptance of alcohol consumptionand a large young population.
Women in India have also started consuming more
alcohol.
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Expected Growth Rate
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