Alcohol Industry In India

Indian Spirits Sector - Overview

Indian Liquor Industry with estimated market value of INR 34 !n is "rowin" at #$-#%& over
the last two years' (he industry is estimated to have sold ##% mn cases of I)*L last year' (he
sector is e+pected to maintain its ,-.R of /#%& while the premium se"ment 0ine and 1odka is
e+pected to "row at a hi"her rate' 0ith consolidation and forei"n acquisitions "ainin" steam the
sector is a!out to witness ne+t phase with reali2ation risin" in line with that of their forei"n
counterparts'
(here are 3$% distilleries in India3 with an installed capacity of a!out 3'%4 !illion litres of liquor'
5owever3 production rate is a!out 4& of total licensed capacity as total requirement of liquor
stands at #'3 !illion liters'
)a6or National 7layers
8nited spirits with a!out 9 & of market share in I)*L is the undisputed leader' Radico :haitan
who entered the I)*L space some 4 years !ack has already cornered #$ & market share and
"ainin"' Other players include )ohan )eakin ;<&=3 >a"at6it ;4'%&=3 etc'
International players
(he ma6or international players are 7ernod Richard3 Remy ,ointreau3 and ?ia"eo ;?ia"eo has
tied up with Radico for enterin" Indian markets in !rown spirits=
Investment Rationale
Inherent 7otential3 ?ere"ulation3 western cultural influence and hi"h entry !arriers has helped
the industry in notchin" up hi"her sales "rowth' -lcohol sale is driven !y the hi"h .?7 "rowth
and more people enterin" the drinkin" clu! with newly o!tained prosperity or from up tradin"
from the e+istin" !rand'
Inherent 7otential@
Since li!erali2ation3 the economy has !een "rowin" at steady pace with per capita income risin"
from INR $33$$$ in $% to INR 93#$ in #<<#'
Shift from country liquor to I)*L is e+pected with risin" per capita income and limitin" the sale
of country liquor !y states due to hy"iene factor'
Industry has one of the lowest per capita consumption of !oth Liquor and Aeer and also since the
mar"ins are amon"st the lowest'''
Alcohol and Emerging Markets (Patterns, Problems and
Response).
S. K. Ghosh
(he second volume in the International ,entre for Alcohol 7olicies

series on Alcohol in Society
e+plores in a unique way how a

!alance may !e achieved !etween pu!lic health and commerceB

"ivin" a "ood indication how in practice different disciplines

like "overnments3 scientists3
scholars and pu!lic health e+perts3

non-"overnmental "roups and !odies3 as well as the !evera"e

alcohol industry3 all need to have a place at the ta!le'

(he !ook indicates that any policy on the topic of alcohol drinkin"

should have a !alance
!etween "overnmentsC re"ulation3 industry

self-re"ulation3 and individual responsi!ility' (his
!ook contains

#4 chapters and is in two parts' In the first part3 it discusses

contemporary trends
of the patterns and consequences of drinkin"

in developin" areas like -frica3 -sia3 South Dast
-sia3 ,hina3

India3 and also central and eastern Durope3 Russia3 Latin -merica3

and )e+ico' (he
second part discusses encoura"in" !etter practice'

?ifferent authors have contri!uted3 thus "ivin"
various perspectives

on alcohol-related issues in different countries'

It has always !een difficult to collect detailed and accurate

information3 and relia!le data3 to
achieve a proper conclusion

in most developin" and Latin -merican countries' In the su!-Sahara
and -frica3 there is an enormous diversity of cultures in the

whole continent3 as well as rapid
social chan"es' (he influence

of these3 as well as other factors3 on patterns of drinkin"3

which
cannot easily !e descri!ed in simple terms3 like quantity

and frequency are so diverse that a
multidisciplinary approach

towards understandin" of alcohol drinkin" would !e the !etter

proposal'

(he !ook also states that each country in -frica aims to develop

policies on alcohol3 to ena!le
the inha!itants to en6oy the

!enefits and pleasures of drinkin"3 while also takin" appropriate

measures to protect a"ainst all the ill effects of alcohol'

-ll -sian countries are e+periencin" an increase in the demand

for alcohol' (his is initiated !y
chan"in" lifestyle3 culture3

and e+posure to more sophisticated advertisin" in a conte+t

where
people have the ri"ht to choose from different options'

Alcohol policies need to !e formulated in
these countries takin"

into account the social3 reli"ious3 cultural3 economic3 political3

and pu!lic
health dimensions of alcohol use and a!use' - more

holistic approach3 !ased on o!6ective and
lon"-term prospectives

would !e ideal3 rather than ad-hoc policy-makin"' )ost -sian

countries
may !e approachin" alcohol use and a!use from a narrow3

short-term perspective3 without
adequate consultation from different

disciplines'

(he chapter on (he Alcohol ?rinkin" 7attern in India is also

interestin"' (he findin"s and
o!servations are very close to

my own findin"s from a similar research pro6ect in 0est Aen"al

and 7un6a! a!out a decade a"oB the chapter compares the drinkin"

ha!its of Indians with -sians
in the 8:' (he pattern of drinkin"

is definitely chan"in" very fast3 with ma6or chan"es in
economic

policies3 the li!erational market3 the steady introduction of

a market economy3 and
"rowin" consumerism in India' Other factors

are also !rin"in" a!out various chan"es3 such as
the !reak up

of the traditional 6oint family system and chan"es in values

and attitudes3 includin"
attitudes towards the consumption of

alcohol' ,ultural and reli"ious controls3 that prevented
people

from drinkin" alcohol3 are weakenin" steadily and alcohol drinkin"

has !een spreadin"
to all classes of people' Alcohol drinkin"

is also increasin" amon"st "roups who were
traditionally a!stainers3

such as women3 teena"ers3 and the rural rich3 and I a"ree that

there is an
ur"ent need for the country to review its alcohol

policies3 especially in some parts of India where
alcohol drinkin"

is !ecomin" more prevalent'

In central and eastern Duropean countries3 there has !een a

lon" and rich tradition in the
production3 trade3 and consumption

of alcoholic !evera"es' In Russia3 it is said that e+treme
political3

social and economic chan"es3 within a short time3 and the fall

of socialism3 have created
a difficult conte+t in which to formulate

and implement "overnment policy3 su""estin" that the
task that

lies ahead3 at least in the short term3 is likely to prove very

difficult'

,hina has e+perienced tremendous social and economic chan"es3

from the #<4s onwards3 and
the prevalence of drinkin" alcohol

and of alcohol-related pro!lems has also increased
si"nificantly3

which is posin" a challen"e to medical workers3 particularly

in the mental health
field'

In )e+ico and other Latin -merican countries3 the culture does

not limit the drinkin" of alcohol
and so the ha!it is quite

widespread' -nother real dan"er is the production and sale of

non-
drinka!le alcohol3 which is <9& proof alcohol3 or the consumption

of home-made !evera"es
which have !een produced with no health

controls3 as a possi!le result of restrictions on
availa!ility'

I found a similar picture in India when I carried out an alcohol-drinkin"

survey'
(here is definitely an ur"ent need for research desi"ned

to support the national pro"ramme and
to answer questions a!out

different aspects of alcohol drinkin" and alcohol production'

In a later chapter3 quite a few important points are made in

identifyin" the most appropriate role
for the !evera"e alcohol

industry3 mentionin" the industry structure as a whole3 improvin"

the
data on patterns and level of consumption3 responsi!le promotional

and advertisin" practices3
alcohol education3 and also su""estin"

a framework for responsi!ility and a checklist for related
activities'

(he concludin" chapter !y )arcus .rant is well written' On the

whole this !ook is well
presented and "ives a new dimension

to the pattern of alcohol drinkin" in many countries of the

world'

I am sure that it will !e very useful for research workers3

health visitors and other health
professionals3 and also for

alcohol producers and policy-makers on alcohol drinkin" in many

countries'

FOOTNOTES
Ddited !y )arcus .rant' (aylor and *rancis3 London' #<<43 344

pp'3 E33'' ISAN@ 4F93 <F4
3'
Column : Whiskey, not whisky
Reghu Balakrishnan
Posted: Saturday, Jan 31, 2009 at 0002 hrs S!
"#dated: Saturday, Jan 31, 2009 at 0002 hrs S!
$ont Si%e
Print
$eed&ack
'mail
(iscuss
(iscount ") Sho##in*
+a&y Carry +lanket

Com#are nsurance ,uotes

(ou&le +ed -a%ai
: Of course pu!s routinely sprin" surprises on you3 !ut sometimes these are of the
instructive sort' (his was the kind of e+perience I had durin" a recent visit to a pu! in the
western su!ur!s of )um!ai3 thanks to an encounter with a sophisticated !artender' *irst3 he
stron"ly su""ested that I try >ameson or Aushmills3 the Irish masterpieces' Ne+t3 he !rou"ht me
up-to-date with how the demand for these Irish !rands has !een increasin" nowadays' I
crosschecked his insi"hts with the International 0ine and Spirit Record data3 findin" myself
surprised at the compound annual "rowth rate ;,-.R= of Irish 0hiskeys ;spelt with an GeH= in
India' It was #33&3 while Scotch whisky showed 6ust a <& ,-.R' Irish !rands sold a!out 33%
cases last year3 up from a mere #3% cases in $%'
(here is a history !ehind the GeH in Irish 0hiskeys' (wo centuries a"o3 the poor reputation of
Scotch whisky forced the Irish and -merican distilleries to adopt the spellin" IwhiskeyJ3 to
distin"uish their hi"her product quality' (oday3 the !rands distilled in Scotland3 0ales3 ,anada
and >apan "o !y the so!riquet GwhiskyH3 while GwhiskeyH is what we call the spirits distilled in
Ireland and -merica'
5istorically3 Indian liquor manufacturers have a love-hate relationship with their forei"n
counterparts' *orei"ners have never reco"nised Indian-made whisky or !randy3 ar"uin" that it
doesnHt rise up to their standards' (his has led to a peculiar situation3 wherein Indian
manufacturers call themselves IIndian made forei"n liquorJ makers' >ust acquirin" a hi"h-end
historical sin"le malt !rand and turnin" it into a low-cost !lended !rand will not suffice for
Indian manufacturers to "et the coveted3 e+tra GeH' (his will only result in the invasion of more
Irish and ,anadian !rands'
0ikipedia currently defines Indian whisky as Ian alcoholic !evera" e that is la!elled as
GwhiskeyH in India3 which is distilled from fermented molasses3 and as such would !e considered
a sort of rum outside of the Indian su!continentJ' -n unflatterin" decription for sure3 !ut it is
unlikely that we will see this condescension su!side any time soon'
'he malt !hisk" market has huge potential'.
Ads &y .oo*le $ree market -esearch -e#ort
Access /atest Annual -e#orts $ree .et 0nline -e#orts or 1ard Co#ies2
www30rderAnnual-e#orts3com
0nline Share !radin*
t All Started With CCdirect3com 0#en nte*rated 34in41 Account 5ow2
CCdirect3ecam#ai*ns3in
$ull4!e6t 0nline /i&rary
0nline li&rary o7 &ook, 8ournals, articles3 -esearch online3
www3,uestia3com90nline:/i&rary
Link to this pa"e
+yline: (himan Chatto#adhyay
Summary: .lenmoran*ie, one o7 the oldest malt whisky &rands in the world, now
owned &y /ouis ;uitton <oet 1ennessy, is yet to crack the ndian market des#ite
ndia consumin* 92 million cases o7 whisky annually3
.lenmoran*ie, one o7 the oldest malt whisky &rands in the world, now owned &y
/ouis ;uitton <o = euml>t 1ennessy, is yet to crack the ndian market des#ite ndia
consumin* 92 million cases o7 whisky annually3 ts .lo&al +usiness (e?elo#ment
(irector (a?id -idley talks a&out the #ro&lems and &usiness #lans3 '6cer#ts:
ndians consume more whisky than most other nations3 @et the malt whisky market
is ne*li*i&le3 Why is thisA .lo&ally, too, malt whisky has only an B #er cent market
share, with 92 #er cent #re7errin* &lended whisky3 <alt whisky tar*ets only the hi*h4
end consumer who cra?es e6clusi?ity3 A7ter /;<1 /;<1 <oCt 1ennessy4/ouis
;uitton Du#scale retailerE &ou*ht .lenmoran*ie, we ha?e &een steadily increasin*
our #resence in ndia3
1owe?er, the country is yet to wake u# to malt whisky3 While 92 million cases o7
whisky were sold in ndia in 200B, a mere 3F,000 cases o7 this was malt3 !he &ri*ht
side o7 this is that it means there is hu*e #otential 7or *rowth3
What is the ma8or hurdle 7or *rowthA !he ta6ation system on s#irits is a ma8or cause
7or concern at #resent3 $orei*n s#irits are ta6ed &etween 200 and F00 #er cent
more than domestic counter#arts here, diGerin* 7rom state4to4state3 !his is actin*
as a deterrent 7or &uyers, who #re7er to &uy sin*le malt a&road where itHs 7ar
chea#er3
Ads &y .oo*le Career in market -esearch
!he 5ielsen Com#anyHs 11 <onth $ast !rack Career Pro*ram3 )now <ore2
5ielsenacademy3com
+est Stock market !i#s
$rom /eadin* 3 +rokers in ndia -e*ister $or 24(ay $ree !rial
+estStockdeas3co3in9$ree!rial
What sort o7 *rowth are you lookin* at and how do you #ro#ose to achie?e thisA We
ho#e to see ndia reach this take4oG sta*e &y 20123 !he com#any is not interested
in ad &lit%krie*s since the tar*et audience is rather niche3 nstead, the &usiness #lan
is sim#le: to conduct se?eral rounds o7 tastin* sessions with &oth trade e6#erts as
well as connoisseurs across key metros to create awareness and s#read the word
a&out .lenmoran*ie3
5"<+'-S 0$ 50!'
F0I: !he likely4increase in demand 7or diamond 8ewellery D-s 29,300 crore n. #. !en
millions> as, a crore o7 ru#ees Dwhich is nearly JF,000,000E sK3
$oun #. %rore 4 the num&er that is re#resented as a one 7ollowed &y L %eros> ten
million E in ndia in 2010411, com#ared to the current -s 20,2004crore sales3 !he
domestic 8ewellery market is #e**ed at -s LM,B00 crore, which includes *old,
diamond, #latinum and others3
M,B00 tonnes: !he amount o7 munici#al solid waste #roduced &y (elhi #er day, while
<um&ai *enerates M,F00 tonnes3 !hese cities mostly dum# the wastes in landNll
sites, accordin* to a sur?ey carried out &y $CC $CC $ederation o7 ndian
Cham&ers o7 Commerce and ndustry in 22 cities3
-s 22 cr: !he amount o7 com#ensation #aid to +ritannia ndustries &y (anone .rou#
7or P- P- ntellectual Pro#erty -i*hts
P- n#rocess9n#ro*ress -e?iew
P- ndustrial Pro#erty -i*hts
P- nstitute 7or Policy -esearch D5orthwestern "ni?ersity and "ni?ersity o7
CincinnatiE
P- nstitute o7 Pu&lic -elations in7rin*ement o7 the O!i*er &rand3
23F mn: !he num&er o7 OaPuent households in ndia, accordin* to a sur?ey &y AC
5ielsen3 0ut o7 this, 232 million &elon* to the u##er middle class se*ment3 !he rich
has 032 million and the su#errich suQ#erQrich
adj.
#. 07, relatin* to, or &ein* the wealthiest3
&. Containin* the richest in*redients: su#errich chocolate ice cream3
n. (used with a pl. 031 million households3
-e#roduced $rom +usiness !oday3 Co#yri*ht 20093 /</ /</ /ondon <arket
n7ormation /ink
..... Click the link 7or more in7ormation33 All ri*hts reser?ed3
Pro?ided &y Syndi*ate3in7o an Al&awa&a3com com#any
'ndia %onsolidates position as number one !hisk"
market
25-Mar-2003
Related topics@ ,onsumer (rends
0hen you think of ma6or whisky markets3 India is unlikely to sprin" to mind3 !ut the su!-
continent was the lar"est "lo!al market for whisky3 in all its variants3 last year3 accordin" to a
new report from Canadean'
(he report said that whisky3 or whiskey3 consumption in India reached around %$ million cases in
$$3 some $ per cent hi"her than that of the 8S3 the second-lar"est market' *urthermore3
,anadean predicts that India will a"ain stren"then its position in $33 with consumption likely
to rise to %% million cases' (his market is fuelled almost entirely !y Indian whisky which
accounts for over << per cent of total consumption' In the same period3 consumption is likely to
fall in the 8S and (hailand3 the second and third lar"est markets respectively'
Aut India is not the only country showin" "ood "rowth in whisky sales' (he market - led !y
premium !lends - in South :orea has mirrored the countryCs recent economic fortunes' (he
stron" recovery since the -sian financial crisis has coincided with whisky consumption more
than dou!lin" in the last four years3 ,anadean said3 and South :orea is now the fourth fastest
"rowin" national market' )ore si"nificantly3 of the # markets increasin" most rapidly3 South
:orea is second only to India in volume'
Dlsewhere3 whisk;e=y consumption in many South -merican countries continues to recede with
Aolivia3 1ene2uela3 7ara"uay and -r"entina amon" the five markets showin" the lar"est
downturns' ?espite its si2e3 the 8S market also showed a downturn in $$3 with Aour!on and
other -merican whiskeys3 ,anadian whisky and !lended Scotch all showin" steep declines'
,anadeanCs report also analyses sales !y whisky cate"ory3 and shows that !lended Scotch whisky
is !y far the most popular' (he !i""est consumers of !lended Scotch are the Spanish3 who drank
<'4 million cases in $$3 !ut *rance is e+pected to overtake the 8S as the num!er two country
this year' ScotchCs ChomeC market3 the 8:3 is the fourth lar"est in the world for the !lended drink'
-lthou"h the 8S remains an important market for !lended Scotch3 -mericans consumed twice as
much Aour!on and -merican whiskey3 with consumption dominated !y two !rands@ >ack
?anielCs Old No F and >im Aeam' 5owever3 the fastest "rowin" overall !rand with si"nificant
consumption volume in the 8S is in fact ?ia"eoCs ,rown Royal3 a ,anadian whisky3 the report
said'
,onsumption in (hailand3 the third lar"est whisk;e=y market in the world3 remains hi"h - around
$< million cases in $$3 more than dou!le its nearest rival - !ut "lo!al !rands have still to make
much of an impact there' (he five !est sellin" products there are so-called secondary whiskies -
products such as )ehkon" and Alack ,at' ?ia"eoCs >ohnnie 0alker does have some presence in
(hailand3 however3 althou"h its sales are still dwarfed !y the local products'
*or further details of ,anadeanCs $$ 0hisk;e=y International 7roduct 0atch Report3 contact
-ndy Aryce '
Sha! (alla%e
From Wikipedia, the free encyclopedia
Jum# to: na?i*ation, search
Shaw Wallace !ompany "imited is a liquor manufacturer in India' It is involved in the
production and sales of Indian )ade *orei"n Liquor' (he two !i""est !rands of S0, are Royal
,hallen"e 0hisky and ?irectorCs Special 0hisky'
It was acquired !y 8nited Spirits3 a part of 8nited Areweries3 in mid-$% for around Rs'#3
crore'
Aefore #<<<3 S0, was into diversified !usinesses3 which it shed as part of a restructurin" plan'
)ost nota!le were the sale of ,alcutta ,hemicals and ?eter"ents India Ltd to 5enkel-S7I,