REPORT ON INDIAN BEVERAGE INDUSTRY

TABLE OF CONTENTS

1. Beverage
Overview-----------------------------------------------------3
2. Indian Beverage
Industry-----------------------------------------------------------------------------------------------------------------------4
3. Share of Volume by Beverage Category of
India----------------------------------------------------------------------------------------------7
4. Per Capita Consumption In
India---------------------------------------------------------------------------------------------------------------8
5. Key Figures on Indian Beverage
Industry------------------------------------------------------------------------------------------------------9
6. Factors driving developments in the Indian Beverages Sector-------------------------------------------------------------------------------10
7. Packaging of Beverage
Industry----------------------------------------------------------------------------------------------------------------11
8. Beverages for Health and Wellness in the Indian Market-----------12
9. The beverage industrys response towards Health and
Wellness------12
10. Barriers to taking functional beverages
mainstream------------------13
11. Converting Barriers into the
Opportunities-----------------------------14
12. Indian Beverage Market
Perspectives-----------------------------------15
13. Indian Beverage Distribution & Marketing
Network--------------------15
14. Issues Related to Indian Beverage
Market-----------------------------16

15. SWOT Analysis Of Indian Beverage

Industry---------------------------18
16. The Leading Beverage Companies And Their Competitive
Brands----19
Coca Cola
Company-----------------------------------------------20
PepsiCO
India------------------------------------------------------23
UB
Group----------------------------------------------------------28
Dabur India
Limited-----------------------------------------------30
Red
Bull------------------------------------------------------------32
Caf Coffee
Day---------------------------------------------------34
Nestle
India--------------------------------------------------------35
Tata Global Beverages
Ltd----------------------------------------37
17. Major Markets Under Indian Beverage
Indsutry------------------------40
Indian Non-Alcoholic Beverage
Market---------------------------41
Indian Soft Drink
Market------------------------------------------43
Indian Tea
Market-------------------------------------------------45
Indian Alcoholic Beverage
Market--------------------------------47
Indian Beer
Market------------------------------------------------49
Indian Wine
Market------------------------------------------------52
18. Key risks to the beverage
industry--------------------------------------54
19. Future Projections Of Indian Beverage
Industry------------------------55

Beverage Overview

A beverage is a drink specifically prepared for human consumption.

Beverages almost always largely consist of water. Drinks often
consumed include: Water (both flat or carbonated),Juice based
drinks, Soft drinks, Sports and Energy drinks,Alcoholic beverages like
beer or spirits ,Coffee, tea ,Dairy products like milk. Commonly,
drinks are filled into containers, like glass or plastic bottles, steel or
aluminum cans as well as cardboard supported packages, like the
"TetraPak" or others. Filling of beverages can be done cold, hot, ambient and coldaseptic filling to mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the
alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are further o
two types based upon carbon content. These beverages contain Fruit juices, Coffee,
Tea, Soda, Colas. The Alcoholic beverages are based upon the fruit content and
grain. It may be Wine, Brandy, Whisky or Beer.

Beverage

Non-Alcoholic Beverages

Alcoholic Beverages

Non-carbonated

Carbonated

Fruit Based

Fruit Juices,
Coffee,
Tea,
Packaged
Water

Colas,
Soda,
Tonic Water

Wine,
Brandy

Grain

Beer,
Whisky

Indian Beverage Industry

India has a population of more than 1.150 Billions which is just behind China.
According to the estimates, by 2030 India population will be around 1.450 Billion
and will surpass China to become the World largest in terms of population. Beverage
Industry which is directly related to the population is expected to maintain a robust
growth rate. The price stability throughout the year has contributed to the increase
in domestic liquor sales.
The
Indian
beverage
market
offers
hot
options.
According to Dabur, the fruit beverages industry in India now stands at Rs 1100
crores (approx. Euro 180 million) and the market has grown at the rate of 30%
where Dabur India, through the new launch Real Burrst, is looking at establishing a
market
share
of
4-5%
in
next
2-3
years.
Part of the industry of fast moving consumer goods is also the beverage industry.
The total beverage industry in India is being estimated to grow at 17% this year,
according to experts. "Food and beverages segment has not suffered despite the
slowdown in the economy. FMCG in our stores has done very well. In fact, we
registered 10-15% growth in this segment last year," said a spokesperson at
Spencer's
Retail
Ltd.
Beverage majors like Coca Cola India, for example, again reported growing
sales.Coca-Cola in India reported a solid first quarter 2009 results not only despite a
challenging economic environment, but also with unit case volume increasing by
31%. And eight quarters out of the 11 quarters had a double-digit growth.

To foreign observers of the market, these figures might sound unbelievable, as

Western markets are saturated and have not seen such figures for long time. But in
India, various positive factors drive the beverage markets. One is the rising number
of people in the middle class with extra money to spend on new beverages like wine,
new brands of imported whiskey, or the fancy energy drinks, some of which are
really good to enable people to work longer, to listen longer during conferences, and
even to party longer and have fun. Leader in this segment is Red Bull, but some
other good and very effective drinks one even very healthy - are already or soon
entering
the
market.
Another factor is the sheer size of the number of people in India. Even the rural
households, as long as the monsoon is good, get purchasing power and can

participate in consumer markets. Where ever the purchasing power is still not big
enough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in
the snack market. Hot summers in India also help a bit to sell beverages.
The large untapped market potential for store-bought non-alcoholic beverages, in
particular carbonated beverages, juice based drinks and energy or sports drinks
among
urban/suburban
consumers
in
India.
Approximately 120 billion litres of beverages are consumed by Indians every year,
but only 5% represent store-bought packaged beverages. The majority of Indian
consumers (75%) still consume non-alcoholic store-bought beverages less than
once a day, highlighting a large untapped market opportunity, particularly in the
carbonated drinks and juice or juice-based categories (estimated to be worth $1.5
Billion and $.25 billion respectively). In order to increase consumption and
penetration of such beverages manufacturers will have to address the two primary
reasons why some Indians abstain entirely, that is, health concerns and undesirable
taste.

The study investigates consumption frequency and habits, the importance of various
product attributes, and brand preferences across age, household income, city in
India and beverage category. This study has implications for manufacturers,
distributors, retailers and investors hoping to capitalize on the growth of these
beverage categories in India and distinguish themselves in the increasingly crowded
marketplace.
India is a booming market for the beverage industry as well. It already accounts for
about ten per cent of global beverage consumption today. This means that the
country has the third-largest beverage consumption after the USA and China. But
that is not the end of the road. Market analyses indicate that beverage sales in India
will be increasing by more than 60 per cent between 2008 and 2012. Since India is
(still) a country of tea and coffee drinkers, packaged cold drinks have enormous
potential. Packaged water, beer, spirits and carbonated drinks are recording what
rates are in some cases high double-digit growth. All in all, annual per capita
consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to
8.7 litres in 2012.
Demand for milk and milk-based beverages are also rising. India is the worlds
biggest producer and consumer of milk, since milk plays a major role in the Indian
diet. The consumption of milk and milk-based beverages has increased by an annual
average of 2.7 per cent in the last four years and most of them (65 per cent) are

sold loose / unpackaged. The proportion of the market accounted for by packaged
milk and dairy products are increasing, however. In the past four years, for example,
demand for milk filled in pouches has grown by 4.5 per cent annually, while the fi
gure for milk in cartons is about 25 per cent. The rising consumption is making it
necessary for appropriate investments to be made by the beverage industry.

The sector is highly fragmented and 95 per cent of these producers have small or
very small operations. Of this, the health beverage industry is valued at $230
million.
The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot
beverage market is a tea dominant market. Consumers in different parts of the
country have heterogeneous tastes. Dust tea is popular in southern India, while
loose tea in preferred in western India. The urban-rural split of the tea market was
51:49 in 2000. Coffee is consumed largely in the southern states. The size of the
total packaged coffee market is 19,600 tonnes or $87 million.
The total soft drink (carbonated beverages and juices) market is estimated at 284
million crates a year or $1 billion. The market is highly seasonal in nature with
consumption varying from 25 million crates per month during peak season to 15
million during offseason. The market is predominantly urban with 25 per cent
contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks
market. Mineral water market in India is a 65 million crates ($50 million) industry.
On an average, the monthly consumption is estimated at 4.9 million crates, which
increases to 5.2 million during peak season.

Share of Volume by Beverage Category of India

PER CAPITA CONSUMPTION IN INDIA

INDIAN BEVERAGE MARKET

SHARE OF VOLUME BY CATEGORY
2002
2003
2004
2005
2006
10.3%
10.4%
10.5%
10.6%
10.8%
6.3%
6.4%
6.5%
6.6%
6.4%
0.2%
0.2%
0.3%
0.4%
0.4%

Segment
Milk
Tea
Bottled
Water
Coffee
0.2%
0.2%
0.2%
Distilled
0.1%
0.1%
0.1%
Spirits
Carbonated
0.2%
0.2%
0.2%
Soft Drinks
Beer
0.1%
0.1%
0.1%
Fruit
0.0%
0.0%
0.0%
Beverages
Wine
-0.0%
0.0%
Subtotal
17.3%
17.6%
17.8%
All Others*
82.7%
82.4%
82.2%
TOTAL
100.0% 100.0% 100.0%
Source: Beverage Marketing Corporation

2007
11.1%
6.5%
0.4%

0.2%
0.1%

0.2%
0.1%

0.2%
0.2%

0.1%

0.2%

0.2%

0.1%
0.0%

0.1%
0.0%

0.1%
0.0%

0.0%
18.1%
81.9%
100.0%

0.0%
18.2%
81.8%
100.0%

0.0%
18.7%
81.3%
100.0%

Key Figures on Indian Beverage Industry

Indian Beverage Market CAGR[2007-2010]:21%

India ranked 3rd in largest beverage consumption after the USA and China
Total Indian Beverage Consumption every year:120 billion liters
Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million)
Fruit Beverage market growth rate: 30%
Majority of Indian consumers:75% consume Non-alcoholic beverages and 25%
Alcoholic Beverages
Carbonated Drinks Market size: $1.5 Billion
Juice or juice-based Drinks Market size: $.25 billion
Health beverage industry is valued at $230 million
Indian Beer Market Growth Rate: 7 - 8 %
Indian Beverage Industry is 10% of Global beverage consumption today.
Milk-based beverages consumption has increased by an annual average of 2.7
per cent in the last four years
Total packaged coffee market size: 19,600 tonnes or $87 million.
The Indian soft drink market is worth Rs. 21,600 million a year with a growth
of around 7%.
The total soft drink (carbonated beverages and juices) market is estimated at
284 million crates a year or $1 billion.
Peak season soft drink consumption : 25 million
Off-season soft drink consumption: 15 million
The market is predominantly urban with 25 per cent contribution from rural
areas.
Coca cola and Pepsi dominate the Indian soft drinks market.
Indian Mineral water market size : 50 million industry.

10

Factors driving developments in the Indian Beverages Sector

India is a growing and developing country which is having a very high economic
growth with the drastic increase into the population size. Due to the developing
economic condition, there is increase in the competition among the manufacturers,
retailers, dealers to promote their products at competitive prices.
The increase in the India population has given a high demand of beverage market
products. The Indian beverage market is segmented into the two major segments
Alcoholic and Non-Alcoholic Beverages.
Again these categories of beverages are sub-divided into the carbonated and fruit
based drinks. Tea and Coffee also contributed majorly into the Beverage Industry.
Indian Beverage market distribution and marketing channel is highly networked and
has a very approach to the customers. Due to the globalization and technological
developments there is highly innovative products are coming into the Indian
Beverage markets which are appreciated by the Indian population.
In India, here are various forms of beverage market get to be seem in the form of
retailers, Restaurants, Coffee shops, Sport events, Hotels etc.
There are certain factors which are driving developments into the Indian
Beverage sector:

Economic growth
Population growth
Competition for Raw materials
Power of retailers
Globalization / Regionalization
Research & Development
Technological Developments
Food safety and regulation
Consumer Demands and trends

11

PACKAGING OF BEVERAGES
The beverage industry is one among the front-liners where massive investments are
being made for expansion and technological up gradation. The packaging of
beverages both carbonated and non-carbonated, is a complex technological branch
in the Food Processing /Packaging industry. The traditional returnable glass bottle
has given way to newer plastic containers as well as cartons. The current trend is to
improve the conventional containers, extend their share in the large market, extend
the shelf-life of the products, provide greater consumer convenience and ultimately
to produce economic packages. The changing Indian scenario, with implementation
of various technologies and market promotion activities, has changed the scope for
this industry exponentially.
The Indian soft drink market is worth Rs. 21,600 million a year with a growth of
around 7%. The soft drinks segment had grown to Rs. 1,05,000 million in the year
2005. The production of soft drinks has increased from 6230 million bottles in 19992000 to 6560 million bottles during the year 2001-2002.
The alcoholic beverages industry, covers Indian Made Foreign Liquors (IMFL),
country liquor and beer. IMFL includes Carbonated Beverages in PET Bottles wine,
whisky, gin, rum, brandy and other white spirits. IMFL industry in India is roughly
valued at Rs. 28,000 crores, growing at a rate of 9-10% per annum in volume
terms. The Indian beer market estimated currently at Rs. 7,500 million a year has
been growing at the rate of 15% per annum.

The packaging requirements for all types of beverages are:

Absolutely leak-proof and prevent contamination
Protect the contents against chemical deterioration
No pick up of external flavours
Be hygienic and safe
Retain carbonation in the case of carbonated beverages
Economical, easy to use and dispose
Good aesthetic appearance

12

Beverages for Health and Wellness in the Indian Market

The global health and wellness trends in the beverage sector are beginning to notice
an increasing level of activity in India.
Economic drivers: With strong economic drivers of consumer spending, India is
a very different market from that of the 1980s or 1990s.With a GDP of USD800
billion and a GDP growth rate in 2005-06 of over 8 percent, India is now the third
largest economy in Asia. And this has not been the result of some freak surge in
growth. Average GDP growth of the last 10 years has been 6.5 percent per annum.
And most significantly, the stepping up of GDP growth is driven primarily by
domestic demand rather than exports.
Demographic drivers: Macro economic factors tell only one part of the story.
There are compelling demographic trends in the country that promise new and
sustained opportunities for beverage product suppliers who can read right the
signals.
The country boasts an expanding middle class that is currently 350 million strong (a
population larger than the total population of the United States or the European
Union). Increased urbanization and rising disposable incomes are creating new and
large target markets for beverage products that go beyond commodity status and
command higher prices. The rapid growth in the retail sector (over 20 percent per
annum) is just one confirmation of the increasing buying power of this middle class.
There is today a growing health and wellness consciousness among consumers and
an increasing importance given to fitness and healthy lifestyle choices. Changing
work and lifestyle habits leave less time for home cooking and therefore spur
demand for convenience and complete nutrition from meal replacements. There is a
greater inclination to self-care rather than medicate, a greater awareness of the
functional benefits of health beverages and a greater willingness to pay a premium
for such beverages.

13

The beverage industrys response towards Health and Wellness

With these strong drivers of growth, it is not surprising that the beverage industry in
India has begun to respond with products that are marketed clearly on a health and
wellness platform.
However, to set the record straight, health and wellness is not a wholly new
platform for the Indian market. India has, for decades, had a thriving health food
drinks market. Market leader, GlaxoSmithKline Consumer Healthcare (GSKCH),
has had iconic brands Horlicks, Boost, Viva and Maltova create 'top-of-the-mind'
recall across generations of Indians. Other suppliers, Cadbury (with Bournvita),
Nestle (with Milo), Heinz (with Complan) and Gujarat Co-operative Milk
Marketing Federation (GCMMF) (with Nutramul and now Amul Shakti) also enjoy a
loyal following. In the non-carbonated beverages sector, Parle Agro's Frooti
remains the largest brand in the fruit drink segment, while Dabur's Real Fruit Juice
leads the juice segment.
The fact is that there has all along been a strong multinational presence in beverage
market and more recently this has been witnessing the emergence of Indian
multinationals across this sector.
However, much of the marketing for health food drinks in the past has been general
health and energy positioning, rather than the focus on specific benefits or
ingredients that is characteristic of most mature health food markets. This is now
changing and the specific initiatives of some companies are going a long way to
creating a truly dynamic health and wellness beverage sector in India.
Global market leader in Probiotic fermented milk drinks, Yakult, has teamed up
with Danone to start manufacturing its probiotic fermented milk drink in India from
2007. Calcium-fortified beverages are a rapidly growing market.
Some examples of brands that have introduced calcium-fortified products are Amul
Shakti, Coca-Cola Indias Mazza, and malted drinks such as Horlicks (GSKCH),
Milo (Nestle), Complan (Heinz), Anlene (Britannia New Zealand Foods) and
Protinex (EAC Nutrition). GCMMF launched sports drink 'Stamina' in early 2006.
Red Bull was launched in India in 2003.
Carbonated beverage giants Coke and Pepsi have also planned to widen their
product portfolio with health-based beverages (non-carbonated). Pepsis
Gatorade is already on the market. And in what must be among the most

14

significant recent commercialization efforts of a traditional Indian drink, Amul

Masti Spiced Buttermilk was launched (in a 200 ml tetra pack), marketed on the
platform of being free of colour, preservatives, acids and sucrose sugar.

Barriers to taking functional beverages mainstream

Despite this flurry of activity, the market is still plagued by low levels of awareness
and a lack of sophistication in consumer choices. Price remains a stumbling block.
Public concerns over safety and quality of beverages have been aggravated by
research findings (and the subsequent controversy) over alarming levels of pesticide
residues in bottled water and soft drinks. Skepticism from the scientific community
continues to limit product endorsement. Furthermore, there is a lack of detail and
clarity in food safety regulation regarding nutraceuticals and functional beverages,
and regarding health claims.
Within the beverage industry there is inadequate understanding of how to take
traditional ingredients into the modern food processing environment. And then of
course, there is competition from other products such as dietary supplements.
Finally, the retail sector, despite its growth, is still mostly unorganized and this limits
the ability to differentiate health and wellness products through the allocation of
exclusive shelf space devoted to this category.

Converting Barriers into the Opportunities

To overcome these challenges, beverage suppliers need to approach the market with
a multi-pronged strategy for increasing penetration. It can be given as follow:
Price resistance can, to some extent, be overcome by moving from imported to
manufactured in India products. For example, imported Gatorade cost INR45 per
200 ml bottle. Now, made in India, it costs INR25.
Substitution or modification is in some ways easier to execute than addition.
(Examples of substitution would be herbal tea replacing regular tea or soy milk
replacing regular cows milk. Examples of modification would be low-fat, no-fat,
lite variants of established beverage brands).
The growing trend towards on-the-go consumption/out-of-home consumption (at
the workplace, in schools, colleges and gyms) presents suppliers with new place and
form of consumption options (for example, vending machines for dispensing health
drinks at schools).

15

 Abandoning the one-size-fits-all positioning and generic selling points of the

past, in favour of targeted and specific messaging based on validated health benefits
is likely to be more effective to the better informed middle class today.
Leveraging the intrinsic appeal of traditional Indian ingredients such as ayurvedic,
herbal or oleoresin ingredients, but delivered in a modern, safe, convenient and
consistent form, or packaging and branding traditional Indian health drinks such as
buttermilk and lassi, could create whole new markets that derive their strength from
known and trusted traditional ingredients or drinks.
In the end, beverage suppliers who unlearn many of the long-held
misconceptions about Indian consumers and respond instead to their changing
needs and priorities will be best placed to maximize the health and wellness
opportunity in this large and growing market.

Indian Beverage Market Perspectives

With the overwhelming successes of the Green and White Revolutions, India is now
fervently poised for the beverage revolution. The entry of multinationals, aggressive
rise of commodity branding and low cost of technology is changing the economics of
the Indian food & beverage industry. The rise of aggressive regional players making
forays into categories where entry barriers are low and a boom in Indian beverage
markets and the rising need for these products are the key reasons for this growth
in beverage business.
The soft drinks perspectives the demand is quite high in the category of carbonated
drinks. The market demand of beer, whisky is also quite high in the upper middle
segment
at
restaurant
and
Hotels.
The trend of white spirits like Vodka, Bacardi Rum also preferred over other drinks.
These drinks are said to hurt less than Indian whiskey, as unlike most Indian whisky,
these
white
spirits
are
not
made
out
of
molasses.
When it comes to Energy drinks, the taste of energy drinks are not liked by many of
people, as for some, these taste like cough syrup. And they are also highly priced.
But there are also people who like to mix it, for example many like Vodka mixes of
Vodka
with
Red
Bull.

Indian Beverage Distribution & Marketing Network

16

Issues Related to Indian Beverage Market

Social Issues
For the alcohol industry the social concerns are numerous, ranging from associated
disease as well as health and safety impacts from high levels of alcohol
consumption, to under-age drinking, and in developing country contexts the portion
of spending on alcohol versus basic needs. Domestic violence and an exacerbation of
poverty have made alcohol abuse the single most important problem for women in
India. The report points out that as prosperity levels increase across Asia, we can
expect to see increasing levels of alcohol consumption. This presents both an
opportunity for listed companies in Asia, but given the potential negative social
impacts, it also presents significant challenges.
Soft drink companies are advised to anticipate government regulations, particularly
in relation to their marketing approaches to children. Companies need to be
innovative in creating healthier soft drink products as in the case of PepsiCo and
Coca Cola focusing on a low sugar, natural sweetner for their products and

17

Vietnamese and Chinese brands tapping into the demand for alternatives to
carbonated soft drinks.
Companies should assess their supply chain risks and put in place codes of conduct,
monitoring and capacity building initiatives to prevent these. As consumers become
more aware of supply chain issues, good supply chain management can create a
competitive advantage.
Companies that rely on agricultural supply chains, particularly large numbers of
small holding farmers, should look to developing partnerships with government, local
NGOs and international agencies to better manage social risks.
Governance Issues
A typical challenge in the Indian beverage sectors fight against corruption is the
complex interrelationship between politics and the private sector. Strong governance
is clearly vital for companies to ensure the integrity of their organizations,
relationships with consumers and government authorities to avoid corrupt business
practices.
Companies should look to providing more transparency and accountability in terms
of the selection of board members, remuneration, links between remuneration and
performance, diversity of the board and decision making processes. Alcohol
companies should ensure a high level of transparency in terms of the financial
support provided for industry groups that in turn lobby national governments for
changes in alcohol policies
Companies should put in place initiatives and get involved in collective action to raise
corporate integrity, especially in relation to corruption and bribery.

Environmental Issues
Companies need to first assess to what extent they and their suppliers depend on
water and the associated risks. This should be done in consultation with key
stakeholders.
Companies should measure their water footprint and look to how they can best
manage water resources through enhanced processes and infrastructure. Companies
should implement rigorous water testing and monitoring systems and install treating
equipment. Water pollution and treatment is already a focus of Asian listed
companies and with the growing emphasis on regulation and enforcement this looks
set to increase.

18

Companies need to realize that global commitments to improve water efficiency can
only be implemented locally, requiring versatility and local management support.
Companies should disclose water performance and the initiatives that they are
putting in place. Companies need to assess their contribution to climate change, put
in place measures to reduce emissions and waste and report on progress.

SWOT Analysis Of Indian Beverage Industry

STRENGTH
Renewal and investment
Innovation and Technological development
Experience in searching for new markets, niches and partners
Availability of key raw materials, cheaper labour costs and presence across the
entire value chain gives India a competitive advantage.

19

 WEAKNESS
Old technologies and poor work organization
Insufficient pace of creation and implementation of innovations
Insufficiently effective activities of small and medium-sized businesses
Change in household consumption patterns
OPPORTUNITIES
Presence of a favorable market
Market globalization
Foreign direct investment promoting knowledge and developing export
channels
Transfer of production to the countries with smaller labour costs
Well established distribution network
THREATS
Unfavorable market trends in energy resources
Increasing competition among exporters and decreasing dependency on one
market
Intense competition between the organized and unorganized segments and
low operational cost.
Water scarcity in India
Implementation of Goods and Service tax by 2011

The Leading Beverage Companies And Their Competitive Brands

There are so many large companies present in India who are leading players in the
Indian Beverages Industry. The companies are having large annual turnovers with

20

wide range of product portfolios which include all kinds of beverage drinks from soda
to energy drinks. These companies are having a large variety of products like soda,
water, Colas, Fruit based drinks, Lemon based drinks, Milk beverages, and Fruit
based wine, beer, Whisky, Coffee, and Tea etc. with so many health and energy
drinks portfolio.
These companies have a strong distribution and marketing channel which supply the
beverages products to customers through retailers, Coffee shops, Restaurant,
Hypermarket and Supermarkets. The segment is highly distributed all over the
country through a long chain of retailers and suppliers who are providing very
efficient service to the company.
The leading Indian Beverage sector players are as follows:

1.
2.
3.
4.
5.
6.
7.
8.

Coca-Cola Company
PepsiCo
UB Group
Dabur India Ltd
TATA Global Beverages Ltd [TATA Tea]
Nestl India
Caf Coffee Day
Red Bull India Pvt Ltd

21

Coca Cola Company

Company Overview

Established in 1886, Coca-Cola is the worlds most ubiquitous brand. The company
and its subsidiaries are present in over 200 countries employing over 49,000
individuals and generating revenues to the tune of US$ 21 billion. The Coca-Cola
Company markets four of the worlds top-five soft drink brands; its beverage
products encompass nearly 400 brands, including non-carbonated beverages such as
waters, juices, sports drinks, teas and coffees. The companys net income registered
a CAGR of 7.2 per cent over a 10-year period. Till date, Coca-Cola has invested over
US$ 1 billion in India and employs over 5,000 people. The Coca- Cola system in
India comprises 25 wholly owned Bottling operations and another 35 franchiseeowned bottling operations. A network of 27 contract-packers also manufactures a
range of products for the company.

Latest Update
Coca-Cola net revenue up 5%,July 2010
India sales jump 22%,July 2010
Net revenue of $8.26 billion July,2010

Business in India
Coca-Cola is a leading player in the Indian beverage market with a 60 per cent
share in the carbonated soft drinks segment, 36 per cent share in fruit drinks
segment and 33 per cent share in the packaged water segment.

22

Outsourcing distribution and manufacturing

Coca-Cola India minimized its capital needs by meeting new manufacturing capacity
needs through external co-packers, outsourcing its distribution and meeting its inmarket-refrigeration and cooling needs by giving incentives to retailers to self-fund
the same through its Own Your Fridge Scheme. Today, the company has an
extensive rural and urban distribution network. Coca-Cola adopts a hub and spoke
format distribution network ensuring that large loads travel longer distances and
short loads travel short distances. The company has increased its village penetration
from 9 per cent in 2000 to 28 per cent in 2004 and covers approximately 175,000
villages today. Rural India now accounts for 30 per cent of Coca-Colas sales
volumes.

Factors for success

Coca-Cola has succeeded in spite of an extremely price-sensitive consumer with
entrenched beverage consumption habits tea, nimbu-paani (lemonade) and a
fragmented and geographically dispersed retail market, and a high tax environment.

Diverse product portfolio

In keeping with its goal of emerging as the single largest entity in the beverage
market, Coca-Cola has a presence in multiple segments.
Carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite and Limca)
Fruit juice based drinks (Maaza)

23

 Powdered soft drinks (Sunfill)

Coffee and tea (Georgia)
Bottled water (Kinley) and Bottled soda (Kinley Soda)
The company leverages this comprehensive portfolio, which includes a mix of its
global brands as well as the locally acquired brands like Thums Up, Limca and
GLASS
PET
CAN
FOUNTAIN
200ml,300ml 500ml,600ml,1250ml,1500ml,2000ml,2250ml 330ml Various
sizes
Maaza
It sells these beverages in multiple volumes of 200 ml, 300ml, 500ml, 1.5 l
bottles, tetra packs as well as through vendors (fountain machines)
Explores new markets with the introduction of new drinks (Georgia,
coffee and tea segment) and flavours (Vanilla Coke)
Brands
Coca Cola
The worlds favorite drink. The worlds most valuable brand. The most
recognizable word across the world after OK. Coca Cola has a truly
remarkable heritage.from a humble beginning in 1886,it is now the
flagship brand of the largest manufacturer, marketer and distributor of non- alcoholic
beverages in the world.
Availabilty:

GLASS
PET
CAN
200ml,300ml,500ml,1000ml 500ml,1.5l,2l,2.25l,500ml+100ml 330ml

FOUNTAIN
Various
sizes

Thumps up
It is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquired by the Coca Cola Company in 1993.This
brand known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude.

SPRITE
Sprite is global leader in the lemon line category, is the largest parkling
beverage brand in India. Launched in 1999,Sprite with its cut thru
perspective has managed to be a true teen icon.

24

GLASS
PET
CAN
200ml,300ml,500ml,1000ml 500ml,1.5l,2l,2.25l,500ml+100ml 330ml

FOUNTAIN
Various
sizes

FANTA
Fanta has entered in Indian market in the year 1993.Fanta stands for its
vibrant color,tempting taste and tingling bubbles.
GLASS
200ml,300ml

PET
CAN
500ml,1.5 L, 2 330ml
L,2.25
L,500+100 ml

FOUNTAIN
Various sizes

LIMCA
Born in 1971,Limca has remained unchallenged as the No. 1 sparkiling Drink
in the cloudy lemon segment.The main point in the brand is the Freshness.
GLASS
200ml,300ml

PET
CAN
500ml,1.5 L, 2 330ml
L,2.25
L,500+100 ml

FOUNTAIN
Various sizes

PULPY ORANGE
The company developed a process that eliminated 80 % of the water in
orange juice.forming a frozen concentrate that when reconsitituted
created orange juice.
Available in 400 ml,1 L and 1.25 L and also in PET pack size.

MAAZA
Mango.It is a fruit associated with good times like no other.Apy called the
king o fruits.
PET 1.2 L
Rs.45

PET 600 ml 200ml

RGB.
RS.25
Rs.8

250ml
RGB
Rs.10

250ml
PET
Rs.15

Pocket
200ml
Rs.15

KINLEY
Kinley water understands the importance and value of the life giving
fore.Kinley water comes with the assurance of safety from the Coca-Cola

25

Company. Coca-Cola introduced Kinley with reverse osmosis along with latest
technology.
Available in 500ml,100ml in PET.
GEORGIA GOLD
Introduced in 2004,the Georgia gold of tea and coffee beverage is perfect
solution for the office and restaurant needs!It is available at quick service
restaurant, Cinemas, Airports and in Coporates across all major matros in
India.
Hot Bevarges : Espresso, Americano, Cappucino, Caffe Latte,
Machaccino , Hot chocolate, Cardamom Tea
Cold Bevarages: Iced Teas,Cold Coffee

PepsiCO India

Company Overview
PepsiCo entered India in 1989 and has grown to become one of the countrys leading
food and beverage companies. One of the largest multinational investors in the
country, PepsiCo has established a business which aims to serve the long term
dynamic needs of consumers in India. PepsiCo nourishes consumers with a range of
products from treats to healthy eats that deliver joy as well as nutrition and always,
good taste.

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7

UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi,

26

hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports
drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks Tropicana
Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation
Nimbooz by 7Up. Local brands Lehar Evervess Soda, Dukes Lemonade and
Mangola add to the diverse range of brands.
The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned
and 23 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division
has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision
of making tomorrow better than today. PepsiCos commitment to living by this vision
every day is visible in its contribution to the country, consumers and farmers.

Brands

Foods

PepsiCos food division, Frito-Lay, is the leader in the

branded salty snack market and all Frito Lay products
are free of trans-fat and MSG. It manufactures Lays
Potato Chips, Cheetos extruded snacks, Uncle Chipps
and traditional snacks under the Kurkure and Lehar
brands. The companys high fibre breakfast cereal,
Quaker Oats, and low fat and roasted snack options
enhance the healthful choices available to consumers. Frito Lays core products,
Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly
reduce saturated fats and all of its products contain voluntary nutritional labeling on
their packets.

Beverages
PepsiCo Indias expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Nimbooz, Mirinda
and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit juices, and juice based
drinks Tropicana Nectars, Tropicana Twister and Slice.
Local brands Lehar Evervess Soda, Dukes Lemonade
and Mangola add to the diverse range of brands.

27

PEPSI
Pepsi is a hundred year old brand loved by over 200
million people worldwide. The largest single selling soft
drink brand in India is the ubiquitous'socialiser'at every
occasion. Youngistaan loves it. 200 million people
worldwide love it. But what has made Pepsi the single
largest selling soft drink brand in India is actually a
formula concocted a century ago in a far away continent

7UP
7UP, the refreshing clear drink with natural lemon and lime
flavour was created in 1929. 7UP was launched in India
in 1990 and its international mascot Fido Dido was used
for advertising in 1992 to position the brand as a cool
drink for youngsters. 7UPs brand communication is
premised on the products natural lemon flavor , guaranteed to provide
uplifting lemon refreshment that raises ones spirits.
Aquafina
In India, Aquafinas journey began with the Bombay launch in
1999 and it was rolled out nationally by the year 2000. On the
strength of its brand appeal and distribution, Aquafina has
become one of India's leading brands of bottled water in a
relatively short span. Bottled across India in 19 plants,
Aquafina ensures its availability across more than half a million
outlets. To cater to varied consumer needs and occasions, it is
available in various pack sizes like 300ml, 500ml, 1 ltr, 2 ltr
bottles and in bulk water jars of 25lts.
Gatorade
Gatorade, Worlds No.1 Sports Drink, was indeed born on the field of
sports! Gatorade was launched in India in 2004 and over the years,
has become an integral part of the kitbags of many top sports people.
Top sports stars and professionals have tried and endorsed Gatorade in
India including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. Sreesanth
Ramji Srinivasan and Javagal Srinath.

28

Mountain Dew
It is a soft drink that exhilarated like no other because of its daring, high-energy,
active, extreme citrus taste. Challenge, a can do attitude, adventure and exhilaration
is deeply entrenched in its brand DNA and the brand has always
celebrated the bold and adventurous spirit of the youth.
This exhilaration and excitement of Mountain Dew has always been
reflected in the high-adrenaline advertising of the brand that
connected it to outdoor adventure.
In 2007, the brand was re-launched with a completely new, punchier
formulation with communication that aimed at forging a strong emotional connect
with our audience.
Nimbooz
Nimbooz was launched in India this year on the 28th of February
2009. Latest addition to portfolio of Pepsi Beverages. The product is
available in 3 convenient formats, 350ml PET, 200ml RGB and
200ml Tetra at magic price points of Rs.15, Rs. 10 and Rs. 10
respectively.
Slice
Slice was launched in India in 1993 as a refreshing mango drink and
quickly went on to become a leading player in the category.In 2008,
Slice was relaunched with a 'winning' product formulation which
made the consumers fall in love with its taste. With refreshed pack
graphics and clutter breaking advertising, Slice has driven strong
appeal within the category.

Tropicana
Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008.It
continues to select the best in fruit to craft high-quality juices, create
original products, pioneer innovative processes and explore new
markets for its products. It is devoted towards a healthful lifestyle by
ensuring that the products are naturally nutritious and provide the
daily benefits that one needs.
Categories in India, Tropicana comes in 2 varieties: 100% Juices (sold
as Tropicana 100%) and Juice beverages & nectars (sold as Tropicana).

29

20 oranges= 1L Tropicana 100% Orange juice

8 apples= 1L Tropicana 100% Apple juice
1.25 Kg grapes= 1L Tropicana 100% Grape juice
1.3 Kg Mixed fruits= 1L Tropicana 100% Mixed fruit juice
Mirinda
Mirinda is an international soft drink brand from Spain that was
launched in India in 1991. In 2008, the brand decided to up the ante
on the brand from a being led by physical attribute-taste, to deliver a
brand philosophy that resonates with the audience. Now, Mirinda's
bold and vibrant colour, great orangey taste and sparkling bubbles
encourages one to be more carefree, spontaneous and playful.

UB Group

Company Overview

The UB Group led by Dr. Vijay Mallya, is one of Indias leading branded consumer
group
The Group has dominated the market in three main consumer driven segments:
alcoholic
beverages, spirits and aviation which are its main lines of business; and

30

also has interests in the

areas of engineering, fertilizers, and biotechnology
The UB Group comprises of United Breweries Holding Limited (UBHL), the holding
company which
in turn owns controlling stakes in other Group companies
including United Spirits Limited ,
Kingfisher Airlines Limited and United Breweries
Limited.
Group has grown in past through both inorganic (Deccan Aviation, Whyte & Mackay,
Shaw
Wallace) as well as organic mode and continues to do so
All the major companies of the group are publicly listed and follow the highest
standards of
corporate governance and international best practices.
UNITED BREWERIES LIMITED (UBL):
UBL continues to rule the roost in the brewing industry. Widely acknowledged as
being the last major growth market for beer in the world, India has been seeing the
entry of all major brewers who have brought their flagship international brands to
the Indian market. Such is the dominant presence of Kingfisher in this sector, that all
these international brands are retailed at prices cross line with Kingfisher rather than
at a significant premium. Despite the efforts of these international companies, with
deep pockets and international brands, our unstinting commitment to understanding
and fulfilling the needs of our Indian consumers has helped UBL to not just retain its
leadership, but to garner market share, which in the first quarter of the financial
year
has
for
the
first
time
ever
crossed
50%.
United Spirits Limited (USL):
It is Indias largest and the worlds 2nd largest spirits company. USL was earlier
McDowell and Company Limited. USL has a portfolio of more than 140 brands, of
which 19 are millionaire brands* (selling more than a million cases a year) and
enjoys a strong 59% market share for its first line brands in India. United Spirits
recorded global sales of 90 million cases for the fiscal year that ended on March 31,
2009.
The company is known to be an innovator in the industry and has several firsts to its
credit such as the first pre-mixed gin, the first Tetrapack in the spirits industry in
India, the first single malt manufactured in Asia and the first diet whisky in the
world. USL acquired Balaji Distilleries Limited in 2008. This acquisition gave the
company the strategic advantage to consolidate the Groups leadership position in a
critical, large and growing State like Tamil Nadu. Currently, the procedural
formalities are underway for the acquisition which will take retrospective effect from
April 1, 2009.

Financial Highlights

31

The Group turnover touched US$ 2.6 bn for the financial year ended Mar08 and the
Group
market
capitalization
as
on
Dec08
was
US$
3.2
bn.
United Breweries (Holdings) Limited : Net Sales is 7,149 Rs. In lacs, 2009
United Breweries Limited: Net Turnover 17475.7 Rs. In million, 2009
United Spirits Limited: Net Turnover is 71,130.831 Rs. In million, 2009

Brands

Whisky
Bagpiper
McDowells
No.1
Directors
Special
Old Tavern
Haywards
McDowells
Green Label
Gold Riband
Royal
Challenge
DSP Black
Signature

Brandy
McDowells
No.1
Honey Bee
John Ex-Shaw

Wine
KINGFISHER
BOHEMIA
Pinotage
Chenin Blanc
Chardonnay

32

Rum
Celebration
Rum
Old Cask
Rum
Old
Adventurer Rum

Vodka & Gin

White
Mischief
Romanov
Blue Riband

Dabur India Limited

Company

Overview

Dabur India Limited has marked its presence with significant achievements and
today commands a market leadership status. Our story of success is based on
dedication to nature, corporate and process hygiene, dynamic leadership and
commitment to our partners and stakeholders. The results of our policies and
initiatives speak for themselves. the three major strategic business units (SBU)
Consumer Care Division (CCD)
Consumer Health Division (CHD)
International Business Division (IBD)
Financial

Highlight
Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore
(FY09)
Brands

Dabur Fruit based drinks:

Ral
Ral has been the preferred choice of consumers when it
comes to packaged fruit juices, which is what makes India's
No. 1 Fruit Juice brand. A validation of this success is that
Ral has been awarded Indias Most Trusted Brand
status for four years in a row.Today, Ral has a range o f 14
exciting variants - from the exotic Indian Mango, Mausambi, Guava & Litchi to
international favourites like Pomegranate, Tomato, Cranberry, Peach, Blackcurrant &
Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range helps
cater different needs and occasions and has helped Ral maintain its dominant
market share.
India's No. 1 Fruit Juice brand
Voted as a Superbrand
Voted by consumers as the most trusted fruit juice brand for four years in a
row
Ral awarded the Readers Digest Trusted Brand Gold Award 2009 in the food
and beverages category

33

Ral Activ
Ral Activ is a range of unsweetened juices that contain NO
ADDED SUGAR, COLOURS OR PRESERVATIVES. Real Activ juices
are made from concentrated juices. After the juice is pressed from
the fruit, the water is removed to reduce trans portation load. At
our factories, during the manufacturing of juices/ juice blends, we
add back the equivalent quantity of water. Thus, Ral Activ Juices have as much
juice as present in respective fruit.
Ral Activ Juices contain

0% Added Sugar
No Added Colour or Preservatives
Naturally rich in antioxidant Nutrients
Helps meet 1 serve of your 5-a-day

Ral Burrst
Ral Burrst, the latest addition to Dabur's Foods portfolio, has a
range of light & refreshing fruit beverage.Available in 4 exciting
flavours
of Mixed
Fruit, Crispy
Apple, Orange
Bytez and Mango Mania, Ral Burrst promises an experience
that delivers refreshment through lightness of fresh fruits to
you.Ral Burrst comes in an attractive tetrapack highlighting the
'Lite and Refreshing' qualities of fruits that it brings to you. All 4
variants are made available in 1 liter and 200 ml packs, priced at Rs. 65 and Rs. 15
respectively.

LEMONEEZ
A 250 ml bottle of Lemoneez is equal to juice 25 lemons
approximately.

34

Red Bull

Company

Overview
In 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which
enjoyed widespread popularity throughout Far East. His idea to market these
functional drinks outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in
Hong Kong.In 1984, Mateschitz founded Red Bull. He fine-tuned the product,
developed a unique marketing concept and started selling Red Bull Energy Drink on
the Austrian market in 1987. This was not only the launch of a completely new
product, in fact it was the birth of a totally new product category.
In 2008, Red Bull launched its own Cola: Red Bull Simply Cola Strong & Natural.
Very much in line with the needs of today's consumers, Red Bull Cola - unlike
traditional colas - only contains ingredients of 100% natural sources.
In 2009, Red Bull extended its product portfolio with Red Bull Energy Shots: Starting
in the USA, now gradually rolling out globally.
Around 4 billion cans of Red Bull are consumed every year. The responsibility for the
success of the world's No. 1 energy drink is shared by the comp any's 6,900
employees around the world. Today Red Bull has annual sales of approx. 4 billion
cans in 160 countries.. As of the end of 2009, Red Bull employed 6,900 people in
160 countries (end 2008: 5,683 in 148 countries).
Despite the ongoing difficulties presented by the global economic downturn, plans
for growth and investment in the business year 2010 remain - typically for Red Bull very ambitious, but continue to rest on a solid and conservative financial footing.
Brands

Red Bull Energy Drink

Red Bull Energy Drink is a functional beverage with a
unique combination of ingredients. It has been specially
developed for times of increased mental and physical
exertion. Red Bull Energy Drink vitalizes body and mind.
Red Bull Energy Drink
- increases performance
- increases concentration and reaction speed
- improves vigilance

35

- improves the emotional status

- stimulates metabolism
Red Bulls effects are appreciated throughout the world by top athletes, busy
professionals, active students and drivers on long journeys.

Red Bull Sugarfree

Red Bull Sugarfree is a functional beverage with a unique
combination of ingredients. It has been specially developed for
times
of
increased
mental
and
physical
exertion.
Red
Bull
Sugarfree
vitalizes
body
and
mind.

RED BULL COLA

The cola from Red Bull is a unique blend of ingredients, all from
100 % natural sources. In addition, it is the only cola which
contains both the original Kola nut and the Coca leaf. The result
is a natural, not-too-sweet cola taste, which comes from using
the right plant extracts.
Available in AUSTRIA,SWITZERLAND,UNITEDKINGDOM,ITALY
IRELAND,RUSSIA.USA, BELGIUM/LUXEMBURG

RED BULL ENERGY SHOTS

Red Bull Sugarfree Shot is a concentrated Red Bull Sugarfree in a
60ml bottle with the same functional ingredients as in a Red Bull
Sugarfree 250ml can and only 2 calories.

36

Caf Coffee Day

Company

Overview

Indias favorite coffee shop where the young at heart unwind. Were a division of
Indias largest coffee conglomerate, the Amalgam ated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as Coffee Day, its a Rs. 750 crore, ISO
9002 certified company. With Asias second-largest network of coffee estates
(10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant
source of coffee. This coffee goes all over the world to clients across the USA,
Europe and Japan, making us one of the top coffee exporters in the country. Caf
Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first
caf at Brigade Road in Bangalore. Today, more than a decade later, Caf Coffee Day
is the largest organized retail caf chain in India with cafes functioning in every nook
and corner of the country. Drawing inspiration from this overwhelming success, Caf
Coffee Day today has cafes in Vienna, Austria and Karachi. Whats more, new cafes
are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia
in the near future.
Our Divisions

Coffee Day Fresh n Ground.

Coffee Day Xpress.

Coffee Day Take Away

Coffee Day Exports

Coffee Day Perfect

Beverages
Hot Coffees- Cafe Latte, Cafe Mocha , Cappuccino, Irish Coffee, Macchiato, Solar
Eclipse, Aztec, Black Coffee, Espresso, Ethiopian

37

Cold Coffees- All Day Refresh.., Cafe Frappe, Chill O Coffee, Devils Own, Kaapi
Nirvana, Mochachillo, Tropical Iceber...
Hoteas- Darjeeling-Divi..., Lemon Demon, Assam Express, Masala Garam
Frosteas- Lemon Freeze, Strawbrrrrrrry
Choco-lattes- Choco Rocks, Hot Choco Latte
Fruiteazers- Cool Blue, Green Apple Sod..., Lychee Chill, Mango Shake, Strawberry
Blus..., Black Currant B...

Nestle India

Company

Overview
Nestls relationship with India dates back to 1912, when it began trading as The
Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling
finished products in the Indian market. Nestl has been a partner in India's growth
for over nine decades now and has built a very special relationship of trust and
commitment with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to about one
million people including farmers, suppliers of packaging materials, services and
other
goods.
Nestl India manufactures products of truly international quality under
internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO,
KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has
also introduced products of daily consumption and use such as NESTL Milk, NESTL
SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita.
Financial

Highlight
Gross Sales 52,224.20 Rupees in Millions [2009]
Net Sales Growth upto 21.3%
Brands

BEVEARGES
NESCAF CLASSIC
NESCAF CLASSIC has the unmistakable taste of 100% pure
coffee and is made from carefully selected coffee beans

38

picked from the finest plantations, blended and roasted to perfection. 100% coffee
100% pleasure
NESCAF SUNRISE Premium
NESCAF SUNRISE Premium is an Instant Coffee-Chicory mixture
(Coffee: Chicory = 70%:30%).A fine blend of Arabica and Robusta
beans i s specially granulated to retain its fresh aroma and flavor,
giving you an incomparable coffee experience.

NESCAF SUNRISE
NESCAF SUNRISE Special is an Instant Coffee-Chicory mixture (Coffee:Chicory =
60%:40%).A special blend of select Robusta coffee beans are specially roasted to
give you great, stimulating coffee taste and aroma. And at a price that is so
affordable
NESCAF Cappuccino
The world's favourite instant coffee brand NESCAF brings two
delicious new Cappuccino variants - NESCAF Choco Mocha and
NESCAF Vanilla Latte. Treat yourself to its rich coffee taste and
delicious froth.Comforting, relaxing - a delicious cup of NESCAF
Cappuccino is a great way to enjoy a true caf experience at home.
NESTEA Iced Tea
New NESTEA Iced Tea with Green Tea brings natural, healthy
goodness of Green tea into your glass. Green tea is a good source
of NATURAL ANTIOXIDANTS which are known to protect body cells
from damage caused by free radicals.Feel good everyday with the
refreshingly light taste of NESTEA with Green Tea.
NESTEA Instant Hot Tea Mixes
New NESTEA Instant Tea gives you a full-bodied, rich tasting cup of
flavourful tea. Refresh yourself with a delicious cup anytime you want!

39

New NESTEA Instant Masala Tea is a delicious cup of tea with the flavour of
traditional Indian spices like ginger and cardamom. R efresh yourself with this aroma
filled, great-tasting tea!
NESCAF 3in1
Introducing new NESCAF 3in1, a perfectly balanced mix of 100%
pure instant coffee, skimmed milk and sugar that gives you a cup
with great coffee taste and aroma. Go ahead, enjoy the taste of your
favourite coffee anytime, anywhere! Available in two convenient
packs the single serve sachet for Rs. 5/- as well as the stylish
multi-pack, containing 5 sachets, for Rs. 25/-.

Tata Global Beverages Ltd

Company

Overview
Set up in 1964 as a joint venture with UK-based James Finlay and Company to
develop value-added tea, the Tata Tea Group of Companies, which includes Tata Tea
and the UK-based Tetley Group, today represent the world's second largest global
branded tea operation with product and brand presence in 40 countries. Among
India's first multinational companies, the operations of Tata Tea and its subsidiaries
focus on branded product offerings in tea but with a significant presence in
plantation activity in India and Sri Lanka.
The consolidated worldwide branded tea business of the Tata Tea Group contributes
to around 86 per cent of its consolidated turnover with the remaining 14 per cent
coming from Bulk Tea, Coffee, and Investment Income. The Company is
headquartered in Kolkata and owns 27 tea estates in the states of Assam and West
Bengal in eastern India, and Kerala in the south.
The company has a 100% export-oriented unit (KOSHER & HACCP certified)
manufacturing Instant Tea in Munnar, Kerala, which is the largest such facility
outside the United States. The unit's product is made from a unique process,
developed in-house, of extraction from tea leaves, giving it a distinctive liquoring
and taste profile. Instant Tea is used for light density 100% Teas, Iced Tea Mixes and
in
the
preparation
of
Ready-todrink
(RTD)
beverages.

40

With an area of approx 15,900 hectares under tea cultivation, Tata Tea produces
around 30 million kg of Black Tea annually.
Financial

Highlight
Net Sales / Income from Operations: 41783 Rs in lakhs[2009]
Brands

The company has five major brands in the Indian market - Tata Tea,
Tetley, Kanan Devan, Chakra Gold and Gemini -- catering to all
major consumer segments for tea. The Tata Tea brand leads market
share in terms of value and volume in India and the Tata Tea brand is
accorded "Super Brand" recognition in the country. Tata Tea's
distribution network in the country with 38 C&F agents and 2500
stockists caters to over 1.7 million retail outlets (ORG Marg Retail
Audit)
in
India.

Bulk Tea
All grades of CTC Teas
All grades of Orthodox Teas
Organic Tea - Orthodox grades
Teas are supplied in packaging as per ISO norms as well as customer requirements
viz. 4-ply Kraft Paper Sacks, Multiwall Paper Sacks, Rigid T--Sacks, Polywoven Sacks,
Currugated Fibre Carlons, Polylined Jute Bags etc.

Instant Tea
(All products are cold water soluble)
Instant Tea Division caters to customer specific product and are used for light
density 100% Teas, Iced Tea Mixes and in the preparation of Ready to Drink (RTD)
beverages. Instant Tea powder is packed in bulk packages of 20/25/35 kg each.
TEA- Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini

Coffee Tata's Coorg 100% Pure Filter Coffee

Coorg Pure is the connoisseurs' choice. It is becoming as much a part of the
purist's morning as the sound of temple bells, suprabatham and the morning

41

newspaper. A rich shot of the traditional hand-grinder, lit by shafts of morning light is a key image
- that triggers off memories of a time when coffee was ground at home. It is the only brand of
pure coffee available in triple laminate polypack (seals in aroma and freshness) in the market.

Tata's Coorg Double Roast

Tata's Coorg Double Roast has become India's 2nd largest filter coffee-chicory
brand. The brand has captured the hopes and aspirations of the archetypal
daughter-in-law. Confident, seeking to express herself and gain respect. For eg: in
the ad-film the daughter-in-law gains the approval of her husband and her motherin-law too, who both exclaim "Fantastic Malathi". A host of new packs like
internationally accept ed valve packs and the 'Chinna Thambi' (kid brother in
Tamil) Rs. 1.50 pack have opened up new markets for the brand.
Tata Cafe
Tata Cafe, a 100% Pure Instant Coffee, was launched in 1996, offer a "Bush to
Cup" experience in a cup of pure Instant coffee for a very competitive price.
The product was endorsed by Popular film artistes like Sridevi and Renuka
Sahane and ace cricketer Saurav Ganguly. Lot of innovative marketing
activities have given this brand larger than life image.

Tata Kaapi
Tata Kaapi, an Instant Coffee - Chicory mixture is the third player in the Instant
coffee-chicory segment. This brand attempts to strike a balance between Tradition
and Modernity. A blend of tradition and lifestyle imagery has been used to project
this brand. Innovative marketing has been the hallmark of this brand, with
everything larger than life and beyond ordinary. This brand has triumphantly
entered the Guiness Book of World Records with the world's largest Coffee mug.
Consumers are positively responding and it is heartening to note the acceptance
gained in the most discerning coffee state of them all - Tamil Nadu.

42

Major Market under Indian Beverage Industry

1.
2.
3.
4.
5.
6.
7.
8.

Indian Non-Alcoholic Beverage Market

Indian Soft Drink Market
Indian Tea Market
Indian Alcoholic Beverage Market
Indian Beer Market
Indian Wine Market
Key risks to the beverage industry
Future Projections Of Indian Beverage Industry

43

Indian Non-Alcoholic Beverage Market

Non-alcoholic beverages are broadly classified as carbonated drinks, non-carbonated
drinks and hot beverages.India n on-alcoholic drinks market to
grow at 15% CAGR.The fruit juices and fruit-based drinks market
is close to Rs 5,000 crore ($1.13 billion), growing at 35-40 per
cent annually.The carbonated drinks market is close to Rs 6,000
crore ($1.36 billion) with growth at 10-12 per cent.
Within the hot beverages category, India is the largest producer of
tea and accounts for 28 per cent of the global production at 956
million kilograms annually.The total turnover of the tea industry is
over Rs 8,000 crore ($ 1.8 billion), growing at a rate of 1.2 per
cent annually.India is the worlds 5th largest producer of coffee, accounting for 4 per
cent of the worlds production.
India has witnessed radical shift in consumption of non-alcoholic drinks over the
recent past. Fast expanding middle class population that is currently around 350
million, increased urbanisation and rising disposable income are some of the major
reasons
contributing
to
this
change.
Indian non-alcoholic drinks market was estimated at around Rs 216 billion in 2008
and is forecast to grow at a CAGR of around 15% during 2009-2012.

44

Growing health consciousness among Indias young population has brought about a
revolution in the Indian non-alcoholic drinks market. It has been seen that cola sales
have fallen dramatically due to rising health concerns and this seems to have
benefited the countrys non-carbonated drinks market such as energy drinks and
juices, the company said.
According to the segment level analysis, the highest growth will be seen in the
fruit/vegetable juice market which is forecast to grow at a CAGR of around 30% in
value terms during 2009-2012. It will be closely followed by the energy drinks
segment at a CAGR of around 29% during the same period. There is a greater
awareness of the functional benefits of health beverages and a greater willingness
to pay a premium for such beverages. With these strong drivers of growth, it is not
surprising that the beverage industry in India has begun responding with products
that
are
marketed
clearly
on
a
health
and
wellness
platform.
In India, the Coca-Cola and Pepsi soft drink brands suffered a setback in August of
last year due to a product contamination scare. Both have cut profit margins to the
bone in order to fend off competition from low-priced local fruit drinks.
Indian consumers are accustomed to drinking a variety of locally-produced soft
drinks that are sold in small stands throughout the country. Rural India is still a
highly price-sensitive marketplace, so the major soft drink companies are forced to
cut profit margins in order to compete there.
India's purchasing power parity per capita of US$2,850 is representative of a nation
in which the average consumer has insufficient income to engage in discretionary
spending. Nevertheless, during the hot season, spur-of-the-moment beverage sales
are commonplace. In order to position themselves for sales growth, the
major soft drink companies priced a 200-milliliter bottle at the equivalent of 11 U.S.
cents. Although that price is not sustainable beyond the short term, management
hopes that it will be enough to wrest market share away from local products and
substantially increase sales volume in 2004.
Beverage companies cannot afford to ignore India's rural consumers if they wish to
expand market share. According to data release by the PRB, only 28 percent of
India's population lived in urban areas in 2003. On average, rural consumers have a
lower income level than their urban counterparts and demand lower-cost beverage
options.
In order to remain cost competitive, soft drink companies have to contain the
transportation costs involved in expanding their distribution network into widespread

45

towns and villages. Faced with high fuel and vehicle costs, companies are turning to
less expensive means of transportation including ox carts and rickshaws.
Another challenge facing the major soft drink companies is regaining consumer
confidence in the aftermath of a well- publicized scandal over the presence of
pesticides in some soft-drink products. A major publicity campaign aimed at
regaining consumer confidence seems to be working, but bottlers need to avoid any
more issues that would throw product safety into doubt.
Recovering and maintaining an image of quality will be a key weapon in the struggle
to take market share away from locally produced fruit beverages. Indian consumers
are ready to opt for soft drinks, but not at a premium price.

Indian Soft Drink Market

India soft Drink markets provide the latest retail sales

data, allowing you to identify the sectors driving
growth. ISD identifies the leading companies, the
leading different types of brands and offers strategic
analysis of key factors influencing the market - be they
new product developments, packaging, Innovations,
economic / lifestyle influences, distribution or pricing
issues. India Soft Drinks can access in online strategic
market analysis and an interactive statistical database of volume and value market
sizes including on-trade and off-trade, company and brand shares, distribution and
pricing
data.
India soft drinks industry continued on its path to recovery from the low growth

46

seen between 2005 and 2006, with higher volume growth in 2008 than that seen in
2007. The mature sectors of bottled water and fruit/vegetable juice and carbonates
saw a dynamic year, with companies refreshing their products brand image and
packaging to attract to the new consumers. showing product categories, such as
energy drinks and reconstituted 100% juice, saw high and double-digit growth rates,
as companies increased their products penetration in India. Off-trade volume growth
was slightly higher than on-trade volume growth, its convenient on-the-go
packaging, company sponsored chillers in kiranas and attractive supermarket
displays fueled off-trade sales across the hole marketing shares.
Multinationals Companies are Coca-Cola India and Pepsi Co India Holdings saw
their off-trade value shares of soft drinks in India decline over the review in period,
as other national and regional players updated their brand portfolios and increased
the volume and demand of their brands in India. The bottled water players, such as
Parle Bisleri and Dhariwal Industries, were particularly successful in expanding their
consumer base through a concerted effort to increase their manufacturing capacity
and move to newer regions within India.The Dabur India and Parle Agro benefited
from their first mover advantage in being present in high-growth emerging product
categories, such as 100% juice and other non-cola carbonates from all companies in
India.
Market size for FY00 was around 270 m.n cases (6480mn bottles). The market
witnessed 5- 6% growth in the early90s. Presently the market growth has growth
rate of 7- 8% per Annam compared to 22% growth rate in the previous year. The
market size for FY01 was 7000 mn bottles. India soft drink market is developing
more than every year.
All market preference is highly regional based. different flavors of soft drink
companies marketing succeed in various cities, While cola drinks have main markets
in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored
drinks are popular in southern states. Sodas too are sold largely in southern states
besides sale through bars. Western markets have preference towards mango
flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated
beverage
market.
Soft Drinks Available in:

47

All Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers Nonalcoholic soft drink beverage market can be divided into fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,
lemon and oranges are carbonated drinks while mango drinks come under non
carbonated category and different tastes and flavors available.
India soft drinks Market Segmnetation:
Segmented on the basis of types of products into cola products and non-cola
products. Cola products account for nearly 61-62% of the total soft drinks market.
The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke,
Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4
categories based on the types of flavors available, namely: Orange, Cloudy Lime,
Clear Lime and Mango. different flavored drinks are named in different names in all
categories.
India Alcoholic Drinks Market expected to grow over 9% CAGR during 20092013.India represents one of the fastest growing alcoholic drinks markets in the
world on account of rise in disposable income and greater acceptance of alcoholic
drinks as a life style product especially by countrys middle class consumers.
In addition, one of the lowest per capita alcohol consumption rate coupled with
enormous consumer base is all set to drive the market which will secure an
exponential growth curve of over 9% CAGR (in volume terms) by 2013.

INDIAN TEA MARKET

The tea industry in India is about 172 years old. It occupies an important place and
plays a very useful part in the national economy. Robert Bruce in 1823
discovered tea plants growing wild in upper Brahmaputra Valley. In 1838
the first Indian tea from Assam was sent to United Kingdom for public
sale. Thereafter, it was extended to other parts of the country between
50's and 60 's of the last century.
However, owing to certain specific soil and climatic requirements its
cultivation was confined to only certain parts of the country. Tea
plantations in India are mainly located in rural hills and backward areas
of North-eastern and Southern States. Major tea growing areas of the country are
concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where
tea is grown to a small extent are Karnataka, Tripura, Himachal Pradesh,

48

Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya,Mizoram,

and Bihar. Unlike most other tea producing and exporting countries, India has dual
manufacturing base.
India produces both CTC and Orthodox teas in addition to reen tea. The weightage
lies with the former due to domestic consumers preference. Orthodox tea
production is balanced basically with the export demand. Production of green tea in
India is small. The competitors to India in tea export are Sri Lanka, Kenya, China,
Indonesia and Vietnam.
Tea is an agro-based commodity and is subjected to vagaries of nature. Despite
adverse agro climatic condition experienced in tea growing areas in many years,
Indian Tea Plantation Industry is able to maintain substantial growth in elation to
volume of Indian tea production during the last one decade.There has been a
dramatic tilt in tea disposal in favour of domestic market since fifties.
While at the time of Independence only 79 M.Kgs or about 31% of total production
of 255 M.Kgs of tea was retained for internal consumption, in 2008 as much as 802
M.Kgs or about 82% of total production of 981 M.Kgs of tea went for domestic
consumption. Such a massive increase in domestic consumption has been due to
increase in population, greater urbanisation, increase in income and standard of
living etc.
Indian tea export has been an important foreign exchange earner for the country.
There was an inherent growth in export earnings from tea over the years. Till 70s,
UK was the major buyer of Indian tea Since 80s USSR became the
largest buyer of Indian tea due to existence of the trade agreement between India
and erstwhile USSR. USSR happened to be the major buyer of Indian tea accounting
for more than 50% of the total Indian export till 1991. However, with the
disintegration of USSR and abolition of Central Buying Mechanism, Indian tea
exports suffered a set back from 1992-93.
However, Indian Tea exports to Russia/CIS countries recovered from the setback
since 1993 under Rupee Debt Repayment Route facilities as also due to long term
agreement on tea entered into between Russia and India. Depressed scenario again
started since 2001 due to change in consumption pattern, i.e. switch over from CTC
to Orthodox as per consumer preference and thus India has lost the Russian market.
Another reason for decline in export of Indian tea to Russia is offering of teas at
lower prices by
China, South Asian countries like Indonesia and Vietnam.
The major competitive countries in tea in the world are Sri Lanka, Kenya, China and
Indonesia. China is the major producer of green tea while Sri Lanka and Indonesia
are producing mainly orthodox varieties of tea. Kenya is basically a CTC tea

49

producing country. While India is facing competition from Sri Lanka and Indonesia
with regard to export of orthodox teas and from China with regard to green export,
it is facing competition from Kenya and from other African countries in exporting CTC
teas. Because of absence of large domestic base and due to comparatively small
range of exportable items, Sri Lanka and Kenya have an edge over India to offload
their teas in any international markets. This is one of the reasons of higher volume
of export by Sri Lanka and Kenya compared to India. Another important point is
that, U.K has substantial interest in tea cultivation in Kenya.
Most of the sterling companies, after Idealization due to implementation of FERA Act
started tea cultivation in Kenya. So, it makes business sense for U.K. to buy tea from
Kenya and Kenya became the largest supplier of tea to U.K. Tea is an essential item
of domestic consumption and is the major beverage in India. Tea is also considered
as the cheapest beverage amongst the beverages available in India. Tea Industry
provides gainful direct employment to more than a million workers mainly drawn
from the backward and socially weaker section of the society. It is also a substantial
foreign exchange earner and provides sizeable amount of revenue to the State and
Central Exchequer.
The total turnover of the Indian tea industry is in the vicinity of Rs.9000 Crs.
Presently, Indian tea industry s having (as on 18.12.2009 )
1692 registered Tea Manufacturers,
2200 registered Tea Exporters,
5848 number of registered tea buyers,
Nine tea Auction centres.

Indian Alcoholic Beverage Market

Alcohol consumption in India is growing by 8% this year. The total

consumption of alcoholic beverages in India is expected to touch
217.1 million cases in 2010.The total consumption of spirits in
the country stood at 200 million cases in 2009. A case has 12

50

bottles, totaling nine liters. The Indian alcoholic beverages market is dominated by
whisky, which accounts for more than half of the total spirits Consumed in the
country. The total consumption of whisky is estimated to be around 131 million
cases in the current year, a rise of 10 per cent from 119 million cases in 2009.

51

After whisky, rum is the most popular alcoholic beverage in India and the
total consumption is estimated to be at 42.4 million cases in the current
year, a rise of 8.7 per cent from 39 million cases in 2009.
The Indian alcoholic beverage market is currently dominated by local
brands such as McDowell, XXX, Bagpiper, 8PM and Officer's Choice,
collectively known as the semi-premium segment.
The Vijay Mallya-promoted United Spirits, which has brands like McDowell
and Bagpiper under its portfolio, is the largest player in the segment -with sales of over 100 million cases per annum. Diageo, the largest
spirits maker globally, is the second-largest player in the country with
brands
like
Johnnie
Walker
under
its
portfolio.
Among domestic companies, Radico Khaitan -- with brands like 8PM and
Magic Moments -- is the second-largest firm after United Spirits in the
country.
The Indian beer market is dominated by United Spirits' sister concern,
United Breweries, and Sabmiller. Both companies account for more than
80 per cent share in the beer category.
Almost all the segments analyzed in the report are found to be growing at
rapid pace even in the phase of economic crisis, especially the alcoholic
drinks segment, which is expected to reach 3 Billion Liter mark by 2012
from around 1.95 Billion Liters in 2008, has been outperforming other
segments in terms of sales growth and concreting a solid platform for
stiff competition in the domestic market among existing as well as new
market players.

52

The low brand loyalty and price-sensitive consumer behavior is still

preventing the Indian market to unfold its full potential. However, it will
require balanced brand portfolio strategies, comprising of diverse
product mix with superb level of quality and that too on an affordable
price. This is expected to result into an overall market progress in which
the
consumer
will
be
benefited
the
most.
India's liquor market is very prosperous these days. While still relatively
small, at $1 billion in annual sales, it is expanding 10% a year, thanks to
the middle class's growing thirst for alcohol. This is quite a switch for a
nation whose constitution encourages a tee totaling lifestyle. The likes
of Guinness/UDV, Seagram, Bacardi Martini, and LVMH are taking full
advantage, setting up distilleries and distribution joint ventures or
making their booze readily available. The result is an all-out war for the
Indian drinker--with bootleggers, multinationals, and local tycoons
slugging it out for a piece of the action.

53

Indian Beer Market

Drinking practices vary substantially among different

countries and different masses. But both alcoholic
beverages are very popular among all ages of people.
The alcoholic drinks market is broadly classified into
five classes, starting from beers, wines, hard liquors,
liqueurs and others. The Indian alcoholic market has
been growing rapidly for the last ten years, due to the
positive impact of demographic trends and expected
changes like rising income levels, changing age profile, changing lifes
tyles and reduction in beverages prices. Beer and wine are perhaps
the oldest and most popular of all alcoholic beverages in the world.
The Indian beer Industry has been witnessing a steady growth rate of 7-9
per cent per year for the last ten years. Apart from Kingfisher and
Fosters Beer, the other brands in the Indian market are Carling Black
Label, Carlsberg, Dansberg, Golden Eagle, Haywards 5000,Premium
Lager, Kingfisher Strong, Hi-Five etc. to name a few. India has
emerged as one of the fastest growing markets for wine consumption
on the global map.

54

The market is growing at a rate of up to 25% per annum each year. With a
population base of over 1.1 Billion, the consumption of wine is
extremely low, indicating vast potential for future growth. Champagne
Indage has been the pioneer in making French style wine in India.
Grover Vineyards and Sula Vineyards too have made smart strides in a
short time span. Recently, companies in the Indian Made Foreign
Liquor (IMFL) space like Diageo, United Breweries and Seagrams too
have ventured into making wine. Other majors players in this field are
United Spirits Ltd, Mohan Breweries & Distilleries Ltd, Jagatjit
Industries Ltd, Empee Distilleries Ltd. Radico Khaitan Ltd. etc. to name
a few.
India presents a huge growth potential for alcoholic beverages sales. The
domestic production of beer and wine is on the rise, especially beer
with official statistics reporting a 12 per cent increase in domestic
beer production. Increasing GDP, favourable growth in the
demographics with a growing urban middle class, growth of modern
retail formats, hopeful rationalization of the taxation rules and ban on
local country liquor and rising health consciousness, age preferences
will act in favour of the growth of alcoholic (beer and wine) beverages
in India in the near future.
Beer is a popular beverage all over the world and contains alcohol ranging from 8 to
9 %. It is found effective in improving appetite and is considered good for health.
Formulations of beer manufacturing are done with the availability of raw materials in
that particular part where the brewery is established. Beer units are concentrated in
the state of Maharashtra, Karnataka, U.P. and Goa with no units in Assam, Tripura,
Tami Nadu, Gujarat, Orissa, Rajasthan and Bihar. Keeping in view the tremendous
export potential, it would be worthwhile to explore the possibilities of setting up an
export-oriented unit. this can be a challenging investment for an entrepreneur.
Plant capacity: 10000 Bottles/Day
Working capital: Rs. 110.49 Lakhs
Return: 34.42%
Plant & machinery: Rs. 293.25 Lakhs
Break even: 52.90%
T.C.I: Rs. 549.74 Lakhs
Indian Made Foreign Liquor

55

Indian made foreign liquor basically prepared from ethyl alcohol of different
concentration with added flavour and coloured bottled hygienically. In India there are
about 260 units engaged in the production of alcoholic brandy, whisky, beer & other
beverages. The installed capacity of all those units is estimated of the order of 1400
to 1450 million liters per annum. India has been exporting alcohol in a substantial
quantities. The estimated growth rate of demand is 20% per annum with increase in
population and other industrial growth and consumption. There is good scope for
new comers.
Plant capacity: 10,000 Btls/Day
Working capital: Rs. 150.00 lakhs
Return: 50.93%
Plant & machinery: Rs. 201.00 lakhs
T.C.I: Rs. 450.00 lakhs
Break even: 44.86%
Glass Bottles For Beer
Glass bottles manufacturing occupies an important part in the glass manufacturing
industry in the field of glass container manufacturing. Glass is being more
extensively used today than ever before and its progress in India has been quite
satisfactory and well maintained. Amongst the various glass items being produced in
India, are glass bottles and containers of all types for pharmaceutical, soft drinks,
foods, breweries, gums, inks, chemicals etc. Glass industry is one of the prominent
industries in the world and its demand has ever since been on the increase. New
entrepreneurs may invest in this sector.
Plant capacity: 1,00,000 Nos./Day
Return: 70.00%
Plant & machinery: 1.95 Crores
T.C.I: 5.18 Crores
Break even: 35.00%
Apart from Wine, Beer is the potential area of opportunities as the market is
forecasted to post double digit growth during 2009-2013 due to its increasing
popularity among youngsters and western culture influence. In contrast, the
competition level in this segment is moderate; thus it asks additional players to
provide
answers
to
overflowed
demand.
The population is evidently huge (945 million in 1996 and over 1.1 Billion during
2004). It is still growing by 20 million plus every year, though this may have eased
in 2003. However, 600 million at least are still outside the market for anything
except very cheap Country Liquor. Advertising has always been officially illegal. In
practice, all major brands spent heavily on Surrogate brands under the same brand
name (on glasses, mineral waters, bottle openers, fashion articles for men etc.).

56

The Distribution system is still the same for Beer as for Spirits and Wine. All outlets
must be licensed; Wholesalers, Retailers, Bars and Restaurants, and Bonded
Warehouse operators. They pay the, varying, States licence fees. These can, at
present, only sell Indian-made Liquor over most States. It continues to be expected
that Beer and Wine may shortly be permitted to sell in more outlets.
South India is the largest consumer of IMFL and Beer. It is more important than
North and West together. Tax-paid Country Liquor is most important in North and
West. The West is declining due to high taxes, and the North increasing in Country
Liquor and Beer particular

Indian Wine Market

The Indian wine industry is in its nascent stage.However, the

Indian wine industry has been continuously growing over the last
ten years. Awareness about the benefits of wine drinking is also
on the rise and wine is gradually becoming a part of urban Indian
life style. Rising incomes of Indian population and exposure to
new culture is adding to the higher consumption. Wine volume

57

sales grew by 17% in 2005, keeping up with the pace of growth seen in 2004 to
clock reach 4.6 million litres. Value sales of wine were worth just under Rs4.5 billion,
which represented an increase of almost 20% in current terms on the previous year.
Despite the rapid growth, wine sales continued to represent a minor proportion of
total alcoholic beverages consumption in India, and barely measurable per capita
consumption. As per the types of wine consumed, red wine has the largest market
share (45% of total wine consumed) followed by white wine (40%), sparkling wine
(13%) and rose wine (2%). Further, the consumption of wine is unevenly spread
across the country as 4 major cities i.e. Mumbai (40%), Delhi (31%), Goa (8%) &
Bangalore (6%) contribute about 85% of total wine consumption. The Indian wine
market is mostly dominated by three major players / Companies. Grapes are the key
raw material in the production of wines. For wine manufacturing, uninterrupted
supply of grapes is must to ensure smooth production. Hence most of thewineries
have their own vineyards or make arrangements with farmers / growers for supply
of grapes as a backward integration. Recognising the scope of potential, the
Government of India has put more emphasis on the development of the wine
industry. The Maharashtra Government has announced a series of incentives like nil
excise duty and 4% sales tax same as that of agricultural produce for all the
wineries in the state, simplified licensing procedure for new wineries, winery has
been given status of Food Processing Industry, grant of subsidy, single window
clearance system etc. after it classified wine as agro based product. The state has
also established two wine parks, Godavari Wine Park in Nashik and Krishna Wine
Park in Sangli district
Plant capacity: 10500 Ltrs/day
Return: 68.00%
Plant & machinery: 453 Lakh
Break even: 32.00%
T.C.I: 1218 Lakh
The growth in production over the years has hovered at about 5 to 6 per cent,
whereas the demand is growing at 10 to 12 per cent per annum. The ten key
manufacturers are the producers of wines, liquors, and spirits in the organized
sector having a combined share of about 67 per cent are McDowell & Company,
Balaji Distilleries, Shaw Wallace & Co., Jagatjit Industries, Mohan Breweries &
distilleries, Shiva Distilleries, Maharashatra Distilleries, Pearl Distilleries, Herbert
sons and Mohan Meakin. The ten major beer manufacturers in the organised sector
having the combined market share of about 75 per cent are United Breweries,
Mohan Breweries and Distilleries, Skol Breweries, Balaji Hotels and Enterprieses,
Mohan Meakin, Mysore Breweries, Charminar Breweries, Aurangabad Breweries,
Hindustan Breweries, And Bottling and Mount Shivalik Breweries. Hops is another
major raw material in short supply. Most of the hops used for flavouring beer are
imported from Germany. Indian companies producing IMFL use the molasses route

58

for manufacture of IMFL as against the international pracouraging the use of nonmolasses route in India. The alcoholic beverages industry is one of the few industries
that still required licence under the Industries Act (Development & Regulation).
Through the minimum capacity has been fixed at 50,000 hectoliters, the government
in recent times has issued licences to manufacture 150,000 hectoliters to some
units. This has aroused expectations of the industry that the minimum economic size
may be hiked to this newer level. There is an ample scope for future developments
in the manufacturing technology adopted by advance countries since the demand for
alcoholic beverages is faster than the existing production capabilities of the alcoholic
beverages industry. Adequate availability of raw materials, improvements in
processing and manufacturing technologies, decontrol of liquor distribution, tax
concessions, and above all wide publicity of IMFL and beer brands through the media
would not only help the industry in enhancing its production but also in competing
the world with its products of international standards.

Key Risks To The Beverage Industry

59

As water is the essential ingredient in a beverage product, as well

as vital for cooling and cleaning during the production process. So
when one considers that Indias current water supply is
approximately 740 billion m3, but it has been estimated that by
2030 demand for water in India will grow to almost 1.5 trillion m 3,
the industry will clearly be facing a major problem there. There will
simply not be enough water.
Yet China, India and Indonesia are all a focus for beverage companies due to their
lower market penetration. There can be little doubt, however, that water security
issues will be
one of the biggest threats to developing market potential. Lets first take a look at
the alcoholic drinks industry.
The market growth for alcoholic drinks is particularly strong in emerging Asian
economies, driven by a range of socio-economic factors.These include favourable
demographics such as the greater proportion of young people reaching the legal
drinking age and increased per capita income and urbanization in countries such as
India and China.
The water bottles market is also booming. The market for bottled water is
developing rapidly in Asia. Health concerns of polluted municipal water sources and
increasing water shortages are expected to be key drivers of this, but wealth and the
increase in Asian middle classes will play the most significant role.
Consumer demand for purity, hygiene and convenience is on the increase. In India
the market is expected to grow by 100 percent over the next five years and there
are currently more than 2,000 bottled water producers. Whilst there has been a
backlash against bottled water in developed countries as the environmental impact
of plastic bottles becomes more apparent, in Asia it looks set to become an
increasing trend.

60

Future Projections Of Indian Beverage Industry

Beverage Industry is projected to have overall growth between 8%

-8.5 %

Indian non-alcoholic drinks market is expected to at a CAGR of around 15%

during 2009-2012.
India Alcoholic Drinks Market to Grow Over 9% CAGR during 2009-2013
The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion Liter Mark
By 2012
The sectors which are projected to achieve excellent growth of 20% from wine
Fruit/vegetable juice market will grow at a CAGR of around 30 per cent in value
terms during 2009-2012
The energy drinks segment which will grow at a CAGR of around 29 per cent
during the same period.
All in all, annual per capita consumption of packaged beverages is supposed to
triple from 2.6 litres in 2000 to 8.7 litres in 2012. Demand for milk and milk-based
beverages are also rising.
The estimated INR 340 bn Indian liquor industry is expected to maintain its CAGR
of 15%

61

62