...Indian Wine Industry January 2011 - Posts * ------------------------------------------------- S p e c i a l f e a t u r e AP market to grow by 10% After a total sale of 40 million cases of IMFL between 2009-2010, the Andhra Pradesh Beverages Corporation Limited (APBCL) is expecting a growth of 10 per cent in volume in the coming financial year. This is in keeping with the sales over the last three years which have been increasing consistently. Since April 2010 the monthy sales have fluctuated, with the highest sale months being July and August (refer to table). Last year (2009-2010) the total sales of the AP Beer market decreased to approximately 24.9 cases from 29.2 million cases in the previous year (2008-2009), however an estimate of the monthy sales this year show an increase from 2 million (2009- 2010) to 2.5 million (2010-2011). AP Beverages Corporation Limited (APBCL) is the sole wholesale distributor of Indian made foreign liquor (IMFL) and other alcoholic drinks in the state of Andhra Pradesh. Formed in 1986 with the objective of providing pure, clean and hygienically packed arrack, the Corporation also has the functions of setting up Arrack Bottling units for carrying arrack operations and controlling the IMFL Depots located in the state. The Corporation invites tenders from manufacturers all over the country by issuing an open tender notification in the press for supply of IMFL and Beer on Rate Contract basis. The Government constitutes a Subcommittee...
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...The Indian food and beverage industry (not including alcoholic beverages) was valued at approximately $200 billion in the year 2007, according to a FICCI-Technopak study, and is expected to grow to $300 billion by 2015. Of course, not all of this produce goes in for processing, and the food processing industry is therefore estimated at a smaller $70 billion. Beverages, primarily packaged tea and coffee, milk-based packaged drinks, carbonated drinks and fruit-based drinks account for a small proportion of the industry, a little more than $6 billion. The food and beverage industry is considered a priority sector by the government, since it has potential for generating employment in both urban and rural areas. According to the India Brand Equity Foundation (IBEF), the industry already employs over 1.6 million workers directly, besides its impact on other sectors such as agriculture, logistics and retailing. The food and beverage industry covers many sectors, and the Ministry of Food Processing has broadly divided into the following areas: Dairy processing, Fruits & Vegetable processing, Grain processing, Fish, meat & poultry processing and lastly, Packaged goods such as beverages, snacks, bakery products, convenience/ready-to-cook foods. Currently, many units in the food processing industry work in the unorganised sector, but the share of organised industry is expected to grow, gradually. The packaged food, industry is expected to be a significant contributor to this growth...
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...ME PROJECT REPORT | | ON INDIAN LIQUOR INDUSTRY Table of Contents 1. INTRODUCTION…………………………………………………………………….4 2. INDUSTRY OVERVIEW…………………………………………………………..5 3. EVOLUTION OF MARKET STRUCTURE…………………………………..8 4. MARKET PLAYERS AND STRATEGIES…………………………………….10 5. NATURE OF COMPETITION……………………………………………………16 6. ENTRY BARRIERS FOR POTENTIAL ENTRANTS…………………….19 7. CONCLUSION………………………………………………………………………… 21 LIQUOR INDUSTRY IN INDIA INTRODUCTION The Indian alcoholic beverages market is gradually opening up as quantitative restrictions are being lifted, import duties are being lowered and domestic regulations are being simplified. These developments are attracting the attention of foreign players, who are faced with a slowdown in developed markets. According to some recent reports, by 2005, the total supply of liquor in the world will be close to 282 hl but consumption will be only about 198 hl. In such a scenario, India would be an attractive market for international players. An estimated 10 million people consume alcohol in India, out of a population of about 1.2 billion. The liquor industry in India is highly government regulated in terms of constraints on manufacturing, storage as well as distribution. The industry faces threat of prohibition in several states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc. However, the deep-rooted social conditioning against alcohol consumption is gradually starting to...
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...Indian Alcoholic Beverage Industry – Overview India is the third largest market for alcoholic beverages in the world. The demand for spirits and beer is estimated to be around 373 million cases. (Source: Annual Report, Government of India, Ministry of Food Processing Industries). The Alcohol Industry in India can be divided into the following five categories: - 1. Industrial Alcohol 2. Potable Alcohol 3. Mixed Distilleries (Industrial and Potable Alcohol) 4. Bottling Plants (purchasing alcohol and bottling alcoholic beverages) 5. Distilleries producing alcohol from substrates other than molasses. In India, majority of distilleries manufacture alcohol from Sugar Cane Molasses compared to international trend of grain based (rice, wheat, millet, Barley, corn and oat) alcohol. In India, since alcohol is largely produced from sugarcane molasses, the industry is cyclical in nature, as sugarcane production itself is affected every 3-4 years due to monsoon and other factors, resulting in low availability of molasses. Alcohol industry is the second largest source of revenue of the State Exchequer – Rs.25, 000 cores. The Industry turnover is ~Rs.54,000 core (Source: Euro monitor International 2009). It is the only Industry where inputs are decontrolled (free market price) and output is controlled (selling price is determined by State Excise in most States). The Indian spirits market has grown rapidly owing to rapid economic growth, rising disposable incomes, favourable...
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...Liquor industry-In 2013… * India is the 3rd largest liquor market in the world. * One of the fastest growing markets in the world, on the back of demographics & economy. * The overall retail market size of liquor is ~$35 billion per annum. * Strong MNC presence with Diageo, Beam Global, Pernod Ricard, Heineken, SAB Miller, Carlsberg and more. * There are 3 broad categories – IMFL (Indian Manufactured Foreign Liquor which includes whiskey, rum, brandy, vodka & gin), Beer and Country Liquor (cheaper, spiced liquor). * Each of these segments has a volume of between 230-260 million cases per annum. Hence, the market is divided almost equally by volume. * Overall growth of the market is ~8% per annum, mainly driven by IMFL and beer, Country liquor is a slow growth market. * Beer has been consistently growing at over 15% per annum over the last few years. * However, the IMFL market is much larger in terms of value – by the sheer difference in price per bottle. Hence, the IMFL market would be over 65% by value and beer would be ~15% by value. * FDI – 100% FDI is permitted in the alcoholic beverages sector. * Taxation is high, Price is controlled – Excise duties, sales tax, VAT and various intermediary margins contribute bulk of the retail price. * In most states, the government tightly controls the retail price of liquor; a tender process is used to determine prices and volumes that will be bought by the distributors. * It...
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...India I Equities Consumer Sector Report 18 April 2012 India Consumer – Alcoholic Beverages Holding the fort BSE FMCG: 4779 Nifty / Sensex: 5290/17358 Shirish Pardeshi +9122 6626 6730 shirishpardeshi@rathi.com Aniruddha Joshi +9122 6626 6732 aniruddhajoshi1@rathi.com Anand Rathi Share and Stock Brokers Limited, its affiliates and subsidiaries, do and seek to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Disclosures and analyst certifications are located in Appendix 1. Anand Rathi Research India Equities 18 April 2012 India Consumer - Alcoholic Beverages – Holding the fort Snapshot of liquor industry in India Liquor industry break-up Imported 3% Beer 13% Indian-made foreign liquor (IMFL) industry break-up Rum 20% Beer industry break-up Premium 1% Country liquor 48% Brandy 16% IMFL 36% Whisky 59% Standard 45% Strong 54% White spirits 5% Per-capita consumption: IMFL (ltr/p.a./person) 120 100 80 Per-capita consumption: beer (ltr/p.a./person) 140 120 80 Market share: IMFL and country liquor (%) 100 100 80 60 40 20 0 Brazil South Africa Hong Kong Philippines Indonesia Mexico Malaysia China Australia Taiwan Russia India Argentina Thailand Vietnam Egypt 60 40 20 60 40 20 0...
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...leader in beer segment which places it ahead of its competitors. This is because of its investment in theResearch and Development sector in liquor industry which enables it to introduce new brandsrapidly. It has been present in India for many decades which give it an advantage of strong brandloyalty and also a strong brand image. Threat of new entrants: There are many other emerging brands which are coming up in India. As the lifestyle in urbanareas is increasing the per capita liquor consumption is also increasing. These trends are invitinga lot of new foreign companies who willing to expand in the growing Indian market. Severalforeign brands have made brand associations and are marketing their brands aggressivelythrough various point-of-sale promotions throughout their distribution networks. Buyers: As the liquor consumption in India increases the customers also see their power increasing. Inalcohol industry the brand loyalty is not there. So when more and more brands enter the marketthe customer goes for the cheapest brand in the same volume and alcohol limit bracket. Substitutes: In India the primary segments are beer and whiskey. So there is a threat from other substituteslike Vodka, Wine and Rum. If the competitors decide to make these segments more popular thenthere is a threat for the dominant market share of UB group in the liquor segment. Suppliers: The UB group is dependent upon barley producer for their beer production. Any change in barley prices affects the...
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...History Beer began to be exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a...
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...India I Equities Consumer Sector Report 18 April 2012 India Consumer – Alcoholic Beverages Holding the fort BSE FMCG: 4779 Nifty / Sensex: 5290/17358 Shirish Pardeshi +9122 6626 6730 shirishpardeshi@rathi.com Aniruddha Joshi +9122 6626 6732 aniruddhajoshi1@rathi.com Anand Rathi Share and Stock Brokers Limited, its affiliates and subsidiaries, do and seek to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Disclosures and analyst certifications are located in Appendix 1. Anand Rathi Research India Equities 18 April 2012 India Consumer - Alcoholic Beverages – Holding the fort Snapshot of liquor industry in India Liquor industry break-up Imported 3% Beer 13% Indian-made foreign liquor (IMFL) industry break-up Rum 20% Beer industry break-up Premium 1% Country liquor 48% Brandy 16% IMFL 36% Whisky 59% Standard 45% Strong 54% White spirits 5% Per-capita consumption: IMFL (ltr/p.a./person) 120 100 80 Per-capita consumption: beer (ltr/p.a./person) 140 120 80 Market share: IMFL and country liquor (%) 100 100 80 60 40 20 0 Brazil South Africa Hong Kong Philippines Indonesia Mexico Malaysia China Australia Taiwan Russia India Argentina Thailand Vietnam Egypt 60 40 20 60 40 20 0...
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...Markets & Regulations Wine Industry in Maharashtra: An Analysis Sudipto Mitra Two of the countryʹs biggest grape-producing districts, Nasik and Sangli, are in Maharashtra; 20,000 hectares of vineyards here grow more than one lac tons of grapes a year. As much as 99 per cent of the grapes is used for making honey, crushes and jams, or consumed fresh or dry. The rest is used for making wine. Thus the opportunity in this sector is immense and given proper help and guidance this sector can be of great help for employment as well as for earnings. General rules for bar owners as framed and maintained by the local municipal corporation (as per schedule “e” or “fl3”for grant of licenses) are: • Silver plating of the utensils to be used in the bars compulsory. • Fire license to be procured before starting off with the operations. • Glass tumblers a must for all bars for serving wines etc. • Pest control to be done regularly. • The minimum size to be operational is 450 sq. feet. • Tiles compulsory for the floor. • Clean uniforms for the waiters in the bars. • Separate place for washing utensils. • Kitchen to be a minimum distance from the actual serving place. • Twice painting of the walls of the bars every year. • Restaurant/ bar to be cleaned twice per day. Before actually applying for the license, one is required to operate the bar /restaurant for six months. After applying for the license one is required to pay the fees which may vary between one and half lacs to two lacs...
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...Alcohol Industry In India Indian Spirits Sector - Overview Indian Liquor Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years. The industry is estimated to have sold 115 mn cases of IMFL last year. The sector is expected to maintain its CAGR of ~15% while the premium segment Wine and Vodka is expected to grow at a higher rate. With consolidation and foreign acquisitions gaining steam the sector is about to witness next phase with realization rising in line with that of their foreign counterparts. There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor. However, production rate is about 40% of total licensed capacity as total requirement of liquor stands at 1.3 billion liters. Major National Players United spirits with about 60 % of market share in IMFL is the undisputed leader. Radico Khaitan who entered the IMFL space some 8 years back has already cornered 12 % market share and gaining. Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc. International players The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits) Investment Rationale Inherent Potential, Deregulation, western cultural influence and high entry barriers has helped the industry in notching up higher sales growth. Alcohol sale is driven by the high GDP growth and more people entering the drinking club...
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... Name of the Adopted Company : United Spirits Limited The business the company is into: United Spirits Limited is the largest spirits company in the world by volume. United Spirits Limited (USL) is involved in the production, distribution and sale of alcohol beverages across different regions in India. It is also involved in the exports of alcohol beverages to over 37 countries thus enjoying a global footprint as well. Besides Whyte & Mackay and Bouvet Ladubay being 100% subsidiaries of USL, the company has 22 millionaire brands (selling more than a million cases a year) in its portfolio and enjoys a strong 59% market share for its first line brands in India. Its brands include Dalmore, Black Dog Reserve Scotch Whisky(Scotch); Antiquity Blue, Signature(Indian whisky); Honey Bee(Brandy); Blue Ribbon( Gin); Romanov(vodka)etc. A brief introduction to the History of the company: The company was established in 1826 by McDowell & Co as a trading company with its headquarters in Madras, by an enterprising Scotsman Angus McDowell. McDowell’s rapidly became the preferred purveyors of fine imported liquors and cigars that gratified the rich souls in the British India. In 1951, Vittal Mallya acquired McDowell’s initiating a new era in the history of the company. Its first distillery was established in Cherthala in 1959 in Kerala and began bottling brandy. Its first product was launched in 1962 which was Golden Grape Brandy, created in-house. Over the years, itstarted...
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...A Study on Liquor Mafia in India By Kadapa Naveen Chandra Prakash Roll.no. C0654403 2016W_BUS 1013_2 Date: 27th January 2016 Professor: Terry Peddlesden Executive Summery The study is to find the economic, political and social influence of liquor on society. We would discuss about the consequences of ban on liquor and its effects. What are the regulations made by the government to sell liquor by retailer, how they took advantage of loop holes present in the system. Discussion of ethical dilemma for government about liquor business, their industry and impact on society. To analyze the dilemma faced by organizations, economical situations and their social responsibility. How evil forces exploiting these conditions to benefit them, in which most of them are work for government officials, politicians and retailers. The society had adverse effects from persons addicted to alcohol. Alcohol is held responsible for a clichés of accidents and injuries in India, including road traffic trashes. The deaths caused by alcohol poisoning has been at alarming state. The regulations made by government of India inefficient. Prevention programs and treatment facilities are wholly insufficient to meet India's needs. It can be anticipated that alcohol use and related problems will grow in India in the future. Unless planned policy changes are designed and vigorously implemented these problems are likely to produce an excessive burden on this developing country's resources. Introduction ...
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...Alcohol Industry In India Indian Spirits Sector - OverviewIndian Liquor Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years. The industry is estimated to have sold 115 mn cases of IMFL last year. Thesector is expected to maintain its CAGR of ~15% while the premium segment Wine and Vodkais expected to grow at a higher rate. With consolidation and foreign acquisitions gaining steamthe sector is about to witness next phase with realization rising in line with that of their foreigncounterparts. There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor.However, production rate is about 40% of total licensed capacity as total requirement of liquor stands at 1.3 billion liters. Major National Players United spirits with about 60 % of market share in IMFL is the undisputed leader. Radico Khaitanwho entered the IMFL space some 8 years back has already cornered 12 % market share andgaining. Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc. International players The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo hastied up with Radico for entering Indian markets in brown spirits) Investment Rationale Inherent Potential, Deregulation, western cultural influence and high entry barriers has helpedthe industry in notching up higher sales growth. Alcohol sale is driven by the high GDP growthand more people entering the drinking club with...
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...ALL INDIA WINE PRODUCERS ASSOCIATION President Jagdish Holkar Cell. 9850044755 Email: jagdish.holkar@gmail.com, info@allindiawine.com Secretary Rajesh Jadhav Cell. 9422271528 info@rajdheerwines.com 1 Strictly Private and Confidential Indian Wine Industry current scenario & Proposed corrective measures 2 Strictly Private and Confidential Introduction / Background 3 Agro-based industry. Value addition to Agri.- produce. Food Processing Industry. Converts highly perishable grapes in to non-perishable with value addition. Major rural employment generating tool for unskilled labours. Food based (part of food) alcoholic beverage. Tiny Industry. Encourage first generation entrepreneurs amongst the farmers. Promote agro-tourism. Overall rural development Strictly Private and Confidential Key statistics Statistic Wine consumption Industry size (revenues) Land under cultivation Farmer families dependent on grape cultivation Families employed by the wineries Grape dues of 2009 and 2010 (Maharashtra) Present 1.1 crore litres Rs 1,050 crore 10,000 acres 10,000 6,750 Rs 208 crore Year 2020 estimate 7.2 crore litres > Rs 10,000 crore 21,000 acres 21,000 13,500 NA In addition to the above, the wine industry over the years has contributed substantial revenue to the State and Central exchequer Source: Industry association estimates 4 World wine scenario Largest fruit processing industry in the world Aggregate...
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