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 industry’s 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

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PepsiCO India------------------------------------------------------23 • UB Group-----------------------------------------------------------28 • Dabur India Limited----------------------------------------------30 • Red Bull-----------------------------------------------------------32 • Café 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

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like the "TetraPak" or others. steel or aluminum cans as well as cardboard supported packages. Brandy Beer. Drinks often consumed include: Water (both flat or carbonated). Soda. Colas. Whisky or Beer.Coffee. Filling of beverages can be done cold. The Alcoholic beverages are based upon the fruit content and grain. Sports and Energy drinks.Juice based drinks. Coffee.Beverage Overview A beverage is a drink specifically prepared for human consumption. Non-Alcoholic beverages are further o two types based upon carbon content. Soda. Tonic Water Wine. Soft drinks.Dairy products like milk. It may be Wine.Alcoholic beverages like beer or spirits . ambient and coldaseptic filling to mention the latest trend of beverage marketing and technology. Coffee. hot. drinks are filled into containers. Tea. These beverages contain Fruit juices. tea . Packaged Water Colas. Tea. like glass or plastic bottles. Whisky 4 . Beverage Non-Alcoholic Beverages Alcoholic Beverages Non-carbonated Carbonated Fruit Based Grain Fruit Juices. Commonly. Brandy. Beverages almost always largely consist of water. The beverage is mainly categorized into two major categories based upon the alcoholic and nonalcoholic nature of the drink.

these figures might sound unbelievable. get purchasing power and can participate in consumer markets. through the new launch Real Burrst. Another factor is the sheer size of the number of people in India. the fruit beverages industry in India now stands at Rs 1100 crores (approx. various positive factors drive the beverage markets. According to the estimates. to listen longer during conferences.are already or soon entering the market. as long as the monsoon is good. for example." said a spokesperson at Spencer's Retail Ltd. FMCG in our stores has done very well. we registered 10-15% growth in this segment last year. In fact. According to Dabur. but also with unit case volume increasing by 31%. some of which are really good to enable people to work longer. Even the rural households. by 2030 India population will be around 1. Part of the industry of fast moving consumer goods is also the beverage industry. And eight quarters out of the 11 quarters had a double-digit growth. Euro 180 million) and the market has grown at the rate of 30% where Dabur India.Indian Beverage Industry India has a population of more than 1.150 Billions which is just behind China. Leader in this segment is Red Bull.Coca-Cola in India reported a solid first quarter 2009 results not only despite a challenging economic environment. One is the rising number of people in the middle class with extra money to spend on new beverages like wine. The Indian beverage market offers hot options. but some other good and very effective drinks – one even very healthy . The total beverage industry in India is being estimated to grow at 17% this year. or the fancy energy drinks. as Western markets are saturated and have not seen such figures for long time. To foreign observers of the market. is looking at establishing a market share of 4-5% in next 2-3 years. But in India. "Food and beverages segment has not suffered despite the slowdown in the economy. Beverage Industry which is directly related to the population is expected to maintain a robust growth rate. Beverage majors like Coca Cola India. again reported growing sales. The price stability throughout the year has contributed to the increase in domestic liquor sales.450 Billion and will surpass China to become the World largest in terms of population. Where ever the purchasing power is still not big 5 . and even to party longer and have fun. according to experts. new brands of imported whiskey.

In order to increase consumption and penetration of such beverages manufacturers will have to address the two primary reasons why some Indians abstain entirely. All in all. Hot summers in India also help a bit to sell beverages. This means that the country has the third-largest beverage consumption after the USA and China. Approximately 120 billion litres of beverages are consumed by Indians every year. companies offer smaller packs for Rs. Since India is (still) a country of tea and coffee drinkers. health concerns and undesirable taste.7 litres in 2012. It already accounts for about ten per cent of global beverage consumption today. The large untapped market potential for store-bought non-alcoholic beverages. The consumption of milk and milk-based beverages has increased by an annual average of 2. but only 5% represent store-bought packaged beverages. India is a booming market for the beverage industry as well.enough. highlighting a large untapped market opportunity. since milk plays a major role in the Indian diet.25 billion respectively). that is. annual per capita consumption of packaged beverages is supposed to triple from 2. India is the world’s biggest producer and consumer of milk. the importance of various product attributes. packaged cold drinks have enormous potential. The proportion of the market accounted for by packaged milk 6 . The majority of Indian consumers (75%) still consume non-alcoholic store-bought beverages ‘less than once a day’. Packaged water. spirits and carbonated drinks are recording what rates are in some cases high double-digit growth. This study has implications for manufacturers. city in India and beverage category. The study investigates consumption frequency and habits. and brand preferences across age. beer.6 litres in 2000 to 8. especially to be seen in the snack market. Demand for milk and milk-based beverages are also rising. distributors. juice based drinks and energy or sports drinks among urban/suburban consumers in India.7 per cent in the last four years and most of them (65 per cent) are sold “loose” / unpackaged. Market analyses indicate that beverage sales in India will be increasing by more than 60 per cent between 2008 and 2012. household income. 10 or Rs. retailers and investors hoping to capitalize on the growth of these beverage categories in India and distinguish themselves in the increasingly crowded marketplace. But that is not the end of the road. 5. particularly in the carbonated drinks and juice or juice-based categories (estimated to be worth $1.5 Billion and $. in particular carbonated beverages.

which increases to 5. The market is predominantly urban with 25 per cent contribution from rural areas.2 million during peak season. The rising consumption is making it necessary for appropriate investments to be made by the beverage industry. Consumers in different parts of the country have heterogeneous tastes. more than half of this is available in unpacked or loose form. The size of the total packaged coffee market is 19. Of this. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. Indian hot beverage market is a tea dominant market. while loose tea in preferred in western India. while the fi gure for milk in cartons is about 25 per cent.9 million crates. The Indian beverage industry faces over supply in segments like coffee and tea. The urban-rural split of the tea market was 51:49 in 2000. however. demand for milk filled in pouches has grown by 4. In the past four years. Coffee is consumed largely in the southern states. the monthly consumption is estimated at 4. 7 . On an average. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. Mineral water market in India is a 65 million crates ($50 million) industry. Dust tea is popular in southern India.600 tonnes or $87 million. However.5 per cent annually.and dairy products are increasing. Coca cola and Pepsi dominate the Indian soft drinks market. for example. the health beverage industry is valued at $230 million. The sector is highly fragmented and 95 per cent of these producers have small or very small operations.

00% 2.00% 2002 2003 2004 2005 2006 2007 Milk Tea Bottled Water Coffee Distilled Spirits Carbonated Soft Drinks Beer Fruit Beverages Wine Years 8 .Share of Volume by Beverage Category of India 12.00% Share% 6.00% 10.00% 8.00% 0.00% 4.

0% Subtotal 17.4% 0.0% 0.1% 0.0% 0.2% Soft Drinks Beer 0.4% 10.4% 6.1% 81.0% 0.3% 17.PER CAPITA CONSUMPTION IN INDIA Segment Milk Tea Bottled Water Coffee 0.2% 0.0% 18.2% 0.0% 0.2% Distilled 0.2% 0.1% 6.8% 100.0% 18.1% 0.1% 0.9% 100.6% 10.0% 100.4% 0.3% 6.4% 0.0% 0.1% 0.3% 100.2% TOTAL 100.0% 100.8% All Others* 82.7% 81.7% 82.2% 0.0% 9 .1% 0.2% 81.0% 2007 11.6% 17.4% 82.0% 0.2% 0.5% 6.1% 0.2% 0.3% 0.5% 10.0% 0.2% 0.2% 0.0% 18.1% 0.0% Source: Beverage Marketing Corporation INDIAN BEVERAGE MARKET SHARE OF VOLUME BY CATEGORY 2002 2003 2004 2005 2006 10.2% 0.1% 0.4% 0.3% 10.1% Fruit 0.2% 0.2% 0.1% 0.0% Beverages Wine -0.1% Spirits Carbonated 0.8% 6.6% 6.5% 0.1% 0.2% 0.

Indian Mineral water market size : 50 million industry. 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. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. Coca cola and Pepsi dominate the Indian soft drinks market. Milk-based beverages consumption has increased by an annual average of 2.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.7 per cent in the last four years Total packaged coffee market size: 19. 21.600 million a year with a growth of around 7%. 10 . The Indian soft drink market is worth Rs.8 % Indian Beverage Industry is 10% of Global beverage consumption today. 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.600 tonnes or $87 million.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 .

Hotels etc. The increase in the India population has given a high demand of beverage market products. In India. there is increase in the competition among the manufacturers. The Indian beverage market is segmented into the two major segments – Alcoholic and Non-Alcoholic Beverages. Restaurants. dealers to promote their products at competitive prices. There are certain factors which are driving developments into the Indian Beverage sector: • Economic growth 11 . retailers. Again these categories of beverages are sub-divided into the carbonated and fruit based drinks. Due to the developing economic condition. Tea and Coffee also contributed majorly into the Beverage Industry. here are various forms of beverage market get to be seem in the form of retailers. Sport events. Coffee shops.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. Indian Beverage market has a very approach to developments there is Beverage markets which distribution and marketing channel is highly networked and the customers. Due to the globalization and technological highly innovative products are coming into the Indian are appreciated by the Indian population.

05. whisky. has changed the scope for this industry exponentially. 7. with implementation of various technologies and market promotion activities. 1.000 million in the year 2005.500 million a year has been growing at the rate of 15% per annum. The Indian soft drink market is worth Rs. country liquor and beer. extend their share in the large market. The current trend is to improve the conventional containers. gin.000 crores. IMFL industry in India is roughly valued at Rs. The traditional returnable glass bottle has given way to newer plastic containers as well as cartons. growing at a rate of 9-10% per annum in volume terms.• • • • • • • • Population growth Competition for Raw materials Power of retailers Globalization / Regionalization Research & Development Technological Developments Food safety and regulation Consumer Demands and trends 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 alcoholic beverages industry. is a complex technological branch in the Food Processing /Packaging industry. The soft drinks segment had grown to Rs. 28. The Indian beer market estimated currently at Rs. covers Indian Made Foreign Liquors (IMFL). brandy and other white spirits. IMFL includes Carbonated Beverages in PET Bottles wine. 12 . extend the shelf-life of the products. The production of soft drinks has increased from 6230 million bottles in 19992000 to 6560 million bottles during the year 2001-2002. 21. The packaging of beverages both carbonated and non-carbonated. The changing Indian scenario. provide greater consumer convenience and ultimately to produce economic packages. rum.600 million a year with a growth of around 7%.

India is a very different market from that of the 1980s or 1990s. Increased urbanization and rising disposable incomes are creating new and large target markets for beverage products that go beyond commodity status and 13 . Average GDP growth of the last 10 years has been 6. 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). And this has not been the result of some freak surge in growth.  Economic drivers: With strong economic drivers of consumer spending. There are compelling demographic trends in the country that promise new and sustained opportunities for beverage product suppliers who can read right the signals. India is now the third largest economy in Asia.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.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.With a GDP of USD800 billion and a GDP growth rate in 2005-06 of over 8 percent. easy to use and dispose • Good aesthetic appearance 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.

Cadbury (with ‘Bournvita’). while Dabur's ‘Real Fruit Juice’ leads the juice segment. India has. to set the record straight. The beverage industry’s response towards Health and Wellness With these strong drivers of growth. ‘Boost’. Global market leader in Probiotic fermented milk drinks. Calcium-fortified beverages are a rapidly growing market. had a thriving health food drinks market. has had iconic brands ‘Horlicks’. a greater awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. 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. 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. rather than the focus on specific benefits or ingredients that is characteristic of most mature health food markets. GlaxoSmithKline Consumer Healthcare (GSKCH).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. Market leader. ‘Viva’ and ‘Maltova’ create 'top-of-the-mind' recall across generations of Indians. Heinz (with ‘Complan’) and Gujarat Co-operative Milk Marketing Federation (GCMMF) (with ‘Nutramul’ and now ‘Amul Shakti’) also enjoy a loyal following. 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. Nestle (with ‘Milo’). Yakult. 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. Other suppliers. 14 . much of the marketing for health food drinks in the past has been general health and energy positioning. However. has teamed up with Danone to start manufacturing its probiotic fermented milk drink in India from 2007. In the non-carbonated beverages sector. for decades. However. Parle Agro's ‘Frooti’ remains the largest brand in the fruit drink segment. There is a greater inclination to ‘self-care’ rather than ‘medicate’. ‘health and wellness’ is not a wholly new platform for the Indian market.

the retail sector. be overcome by moving from ‘imported’ to manufactured in India’ products. ‘Complan’ (Heinz). It can be given as follow:  Price resistance can. beverage suppliers need to approach the market with a multi-pronged strategy for increasing penetration. ‘Red Bull’ was launched in India in 2003. Finally. the market is still plagued by low levels of awareness and a lack of sophistication in consumer choices. Converting Barriers into the Opportunities To overcome these challenges. there is competition from other products such as dietary supplements. ‘Amul Masti’ Spiced Buttermilk was launched (in a 200 ml tetra pack). For example. imported ‘Gatorade’ cost INR45 per 200 ml bottle. GCMMF launched sports drink 'Stamina' in early 2006. and malted drinks such as ‘Horlicks’ (GSKCH). to some extent. Carbonated beverage giants Coke and Pepsi have also planned to widen their product portfolio with ‘health-based’ beverages (non-carbonated). made in India. Barriers to taking ‘functional’ beverages mainstream Despite this flurry of activity. preservatives. And then of course. And in what must be among the most significant recent commercialization efforts of a traditional Indian drink. Price remains a stumbling block. Coca-Cola India’s ‘Mazza’. despite its growth. Furthermore. it costs INR25. ‘Anlene’ (Britannia New Zealand Foods) and ‘Protinex’ (EAC Nutrition). Pepsi’s ‘Gatorade’ is already on the market. Now. there is a lack of detail and clarity in food safety regulation regarding nutraceuticals and functional beverages. ‘Milo’ (Nestle). 15 . and regarding health claims. 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.Some examples of brands that have introduced calcium-fortified products are ‘Amul Shakti’. 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. Within the beverage industry there is inadequate understanding of how to take traditional ingredients into the modern food processing environment. acids and sucrose sugar. marketed on the platform of being free of colour. Skepticism from the scientific community continues to limit product endorsement.

 Substitution or modification is in some ways easier to execute than addition. herbal or oleoresin ingredients. 16 Indian Beverage Distribution & Marketing Network . The entry of multinationals. These drinks are said to hurt less than Indian whiskey. colleges and gyms) presents suppliers with new place and form of consumption options (for example. whisky is also quite high in the upper middle segment at restaurant and Hotels. as unlike most Indian whisky. convenient and consistent form. Examples of modification would be ‘low-fat’. 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.  In the end. but delivered in a modern. safe. (Examples of substitution would be herbal tea replacing regular tea or soy milk replacing regular cow’s milk. ‘lite’ variants of established beverage brands). 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 Indian Beverage Market Perspectives growing market. could create whole new markets that derive their strength from known and trusted traditional ingredients or drinks. India is now fervently poised for the beverage revolution. or packaging and branding traditional Indian health drinks such as buttermilk and lassi. The market demand of beer. aggressive rise of commodity branding and low cost of technology is changing the economics of the Indian food & beverage industry. Bacardi Rum also preferred over other drinks. 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. ‘nofat’. The soft drinks perspectives the demand is quite high in the category of carbonated drinks. in schools.  The growing trend towards on-the-go consumption/out-of-home consumption (at the workplace. The trend of white spirits like Vodka.  Abandoning the ‘one-size-fits-all’ positioning and generic selling points of the past. vending machines for dispensing health drinks at schools). With the overwhelming successes of the Green and White Revolutions.

these white spirits are not made out of molasses. these taste like cough syrup. And they are also highly priced. Domestic violence and an exacerbation of poverty have 17 . the taste of energy drinks are not liked by many of people. When it comes to Energy drinks. and in developing country contexts the portion of spending on alcohol versus basic needs. for example many like Vodka mixes of Vodka with Red Bull. as for some. to under-age drinking. But there are also people who like to mix it. 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.

Companies that rely on agricultural supply chains.  Environmental Issues 18 . relationships with consumers and government authorities to avoid corrupt business practices. monitoring and capacity building initiatives to prevent these. good supply chain management can create a competitive advantage. links between remuneration and performance. Companies should look to providing more transparency and accountability in terms of the selection of board members. Strong governance is clearly vital for companies to ensure the integrity of their organizations. especially in relation to corruption and bribery. The report points out that as prosperity levels increase across Asia. local NGOs and international agencies to better manage social risks.made alcohol abuse the single most important problem for women in India. natural sweetner for their products and Vietnamese and Chinese brands tapping into the demand for alternatives to carbonated soft drinks. Soft drink companies are advised to anticipate government regulations. 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. 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. particularly in relation to their marketing approaches to children. it also presents significant challenges. should look to developing partnerships with government. particularly large numbers of small holding farmers. As consumers become more aware of supply chain issues. remuneration. Companies should assess their supply chain risks and put in place codes of conduct. This presents both an opportunity for listed companies in Asia. we can expect to see increasing levels of alcohol consumption.  Governance Issues A typical challenge in the Indian beverage sector’s fight against corruption is the complex interrelationship between politics and the private sector. but given the potential negative social impacts.

Companies need to first assess to what extent they and their suppliers depend on water and the associated risks. Companies should measure their water footprint and look to how they can best manage water resources through enhanced processes and infrastructure. Companies need to assess their contribution to climate change. requiring versatility and local management support. put in place measures to reduce emissions and waste and report on progress. Companies should disclose water performance and the initiatives that they are putting in place. This should be done in consultation with key stakeholders. Companies need to realize that global commitments to improve water efficiency can only be implemented locally. 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. 19 . Companies should implement rigorous water testing and monitoring systems and install treating equipment.

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 20 .SWOT Analysis Of Indian Beverage Industry  • • • • STRENGTH Renewal and investment Innovation and Technological development Experience in searching for new markets. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. niches and partners Availability of key raw materials.

Coffee shops. The leading Indian Beverage sector players are as follows: Coca-Cola Company PepsiCo UB Group Dabur India Ltd TATA Global Beverages Ltd [TATA Tea] Nestlé India Café Coffee Day Red Bull India Pvt Ltd 1. and Fruit based wine. 6. Lemon based drinks. Coffee. 3. 4. 8. Whisky. Restaurant.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. These companies have a strong distribution and marketing channel which supply the beverages products to customers through retailers. Fruit based drinks. and Tea etc. These companies are having a large variety of products like soda. 5. water. The companies are having large annual turnovers with wide range of product portfolios which include all kinds of beverage drinks from soda to energy drinks. 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. Hypermarket and Supermarkets. 21 . beer. with so many health and energy drinks portfolio. Colas. Milk beverages. 7. 2.

2 per cent over a 10-year period.Coca Cola Company  Company Overview Established in 1886.  22 . sports drinks.26 billion July. including non-carbonated beverages such as waters. Coca-Cola is the world’s most ubiquitous brand.000 individuals and generating revenues to the tune of US$ 21 billion. Latest Update • Coca-Cola net revenue up 5%. Coca-Cola has invested over US$ 1 billion in India and employs over 5. 36 per cent share in fruit drinks segment and 33 per cent share in the packaged water segment. The company and its subsidiaries are present in over 200 countries employing over 49. its beverage products encompass nearly 400 brands. The company’s net income registered a CAGR of 7.000 people. A network of 27 contract-packers also manufactures a range of products for the company.Cola system in India comprises 25 wholly owned Bottling operations and another 35 franchisee-owned bottling operations. The Coca-Cola Company markets four of the world’s top-five soft drink brands. juices. Till date.July 2010 • India sales jump 22%.July 2010 • Net revenue of $8. The Coca. teas and coffees.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.

Coca-Cola adopts a hub and spoke format distribution network ensuring that large loads travel longer distances and short loads travel short distances. Rural India now accounts for 30 per cent of Coca-Cola’s sales volumes. the company has an extensive rural and urban distribution network. and a high tax environment. Diet Coke. Coca-Cola has a presence in multiple segments. • Carbonated soft drinks (Coke. 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. Fanta.  Diverse product portfolio In keeping with its goal of emerging as the single largest entity in the beverage market.” Today.  Factors for success Coca-Cola has succeeded in spite of an extremely price-sensitive consumer with entrenched beverage consumption habits – tea. Thums Up.000 villages today. Sprite and Limca) • Fruit juice based drinks (Maaza) • Powdered soft drinks (Sunfill) • Coffee and tea (Georgia)  23 .Coca Cola Business In India 60 50 40 Share% 30 20 10 0 Share% Carbonated Fruit Drinks Soft drinks Packaged Drinking Water Drinks Segment Outsourcing distribution and manufacturing Coca-Cola India minimized its capital needs by meeting new manufacturing capacity needs through external co-packers. nimbu-paani (lemonade) and a fragmented and geographically dispersed retail market. The company has increased its village penetration from 9 per cent in 2000 to 28 per cent in 2004 and covers approximately 175.

300ml.500ml+100ml 330ml FOUNTAIN Various 24 .2l.5l.2250ml 330ml Various sizes bottles. GLASS PET CAN 200ml. 500ml. 300ml. 1.This brand known for its strong.• Bottled water (Kinley) and Bottled soda (Kinley Soda) The company leverages this comprehensive portfolio.2000ml. Originally introduced in 1977.500ml.1250ml. mature and uniquely masculine attitude. fizzy taste and its confident.alcoholic beverages in the world.2l. which includes a mix of its global brands as well as the locally acquired brands like Thums Up.5l. The world’s most valuable brand. is the largest parkling beverage brand in India.2. coffee and tea segment) and flavours (Vanilla Coke)  Brands Coca –Cola The worlds favorite drink.25l.300ml.1.Sprite with its cut thru perspective has managed to be a true teen icon. Launched in 1999.from a humble beginning in 1886.1000ml 500ml.500ml+100ml 330ml FOUNTAIN Various sizes Thumps up It is a leading sparkling soft drink and most trusted brand in India.5 l GLASS PET CAN FOUNTAIN 200ml. tetra packs as well as through vendors (fountain machines) • Explores new markets with the introduction of new drinks (Georgia.it is now the flagship brand of the largest manufacturer.500ml. marketer and distributor of non. Limca and Maaza • It sells these beverages in multiple volumes of 200 ml.1000ml 500ml. The most recognizable word across the world after OK. Availabilty: GLASS PET CAN 200ml.25l. Coca –Cola has a truly remarkable heritage. Thums up was acquired by the Coca Cola Company in 1993.1500ml.600ml.1. SPRITE Sprite is global leader in the lemon line category.300ml 500ml.2.

100ml in PET.25 L and also in PET pack size.300ml PET CAN 500ml.300ml PET CAN 500ml.8 250ml RGB Rs.15 Pocket 200ml Rs.Kinley water comes with the assurance of safety from the Coca-Cola Company.25 L.The main point in the brand is the “Freshness”. 2 330ml L.15 KINLEY Kinley water understands the importance and value of the life giving fore. Available in 500ml. GLASS 200ml.25 Rs.2 L Rs.2. Coca-Cola introduced Kinley with reverse osmosis along with latest technology.1.tempting taste and tingling bubbles.500+100 ml FOUNTAIN Various sizes PULPY ORANGE The company developed a process that eliminated 80 % of the water in orange juice. MAAZA Mango.It is a fruit associated with good times like no other.25 L.5 L. 1 sparkiling Drink in the cloudy lemon segment.forming a frozen concentrate that when reconsitituted created orange juice. 2 330ml L.5 L. GLASS 200ml. 25 .Apy called the king o fruits.10 250ml PET Rs.Limca has remained unchallenged as the No.sizes FANTA Fanta has entered in Indian market in the year 1993. Available in 400 ml. RS.45 PET 600 ml 200ml RGB.500+100 ml FOUNTAIN Various sizes LIMCA Born in 1971.1.1 L and 1. PET 1.Fanta stands for its vibrant color.2.

Cold Coffee PepsiCO India Company Overview PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. Tropicana Twister and Slice.GEORGIA GOLD Introduced in 2004. non-carbonated beverage and a new innovation 26 .Gatorade. and juice based drinks – Tropicana Nectars. isotonic sports drinks . in addition to low calorie options such as Diet Pepsi. PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. Cinemas. hydrating and nutritional beverages such as Aquafina drinking water. 7 UP. Caffe Latte. Machaccino . good taste. Tropicana 100% fruit juices.  PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi. Hot chocolate. Mirinda and Mountain Dew. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always. Cappucino. Cardamom Tea Cold Bevarages: Iced Teas. One of the largest multinational investors in the country. Americano.the Georgia gold of tea and coffee beverage is perfect solution for the office and restaurant needs!It is available at quick service restaurant. Airports and in Coporates across all major matros in India. Hot Bevarges : Espresso.

Dukes Lemonade and Mangola add to the diverse range of brands. Local brands – Lehar Evervess Soda. Lay’s.  Brands Foods PepsiCo’s food division. Beverages PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi. hydrating and nutritional beverages such as Aquafina drinking water. Mirinda and Mountain Dew. PEPSI 27 . The group has built an expansive beverage and foods business. Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. Frito Lay’s core products. Local brands – Lehar Evervess Soda.Nimbooz by 7Up. in addition to low calorie options such as Diet Pepsi. of which 13 are company owned and 23 are franchisee owned. PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. consumers and farmers. and juice based drinks – Tropicana Nectars. The company’s high fibre breakfast cereal. Nimbooz. In addition to this. It manufactures Lay’s Potato Chips. Kurkure. PepsiCo has 36 bottling plants in India. 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. Frito-Lay. Dukes Lemonade and Mangola add to the diverse range of brands. Quaker Oats. Tropicana Twister and Slice. isotonic sports drinks Gatorade. 7 UP. Cheetos extruded snacks. is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. To support its operations. Tropicana100% fruit juices. and low fat and roasted snack options enhance the healthful choices available to consumers. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today.

500ml. Bottled across India in 19 plants. high-energy. On the strength of its brand appeal and distribution. Md. the refreshing clear drink with natural lemon and lime flavour was created in 1929. Mountain Dew It is a soft drink that exhilarated like no other because of its daring.1 Sports Drink. Irfan Pathan. extreme citrus taste. has become an integral part of the kitbags of many top sports people. active. S. 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. Challenge. Aquafina In India. a can do attitude. Top sports stars and professionals have tried and endorsed Gatorade in India including Sachin Tendulkar. Kaif. To cater to varied consumer needs and occasions. World’s No. was indeed born on the field of sports! Gatorade was launched in India in 2004 and over the years. Youngistaan loves it. Aquafina ensures its availability across more than half a million outlets. 1 ltr. 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. 2 ltr bottles and in bulk water jars of 25lts. adventure and exhilaration 28 . Sreesanth Ramji Srinivasan and Javagal Srinath. The largest single selling soft drink brand in India is the ubiquitous'socialiser'at every occasion.Pepsi is a hundred year old brand loved by over 200 million people worldwide. Aquafina has become one of India's leading brands of bottled water in a relatively short span. Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out nationally by the year 2000. 7UP’s brand communication is premised on the product’s natural lemon flavor . 200 million people worldwide love it. Gatorade Gatorade. guaranteed to provide uplifting lemon refreshment that raises one’s spirits. it is available in various pack sizes like 300ml.

Tropicana Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008. The product is available in 3 convenient formats. Tropicana comes in 2 varieties: 100% Juices (sold as Tropicana 100%) and Juice beverages & nectars (sold as Tropicana). 200ml RGB and 200ml Tetra at magic price points of Rs. In 2007.is deeply entrenched in its brand DNA and the brand has always celebrated the bold and adventurous spirit of the youth.3 Kg Mixed fruits= 1L Tropicana 100% Mixed fruit juice 29 . Slice was relaunched with a 'winning' product formulation which made the consumers fall in love with its taste. 10 respectively. create original products.In 2008. 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.15.It continues to select the best in fruit to craft high-quality juices. 350ml PET. 20 oranges= 1L Tropicana 100% Orange juice 8 apples= 1L Tropicana 100% Apple juice 1. pioneer innovative processes and explore new markets for its products. Categories in India. Nimbooz Nimbooz was launched in India this year on the 28th of February 2009. the brand was re-launched with a completely new. punchier formulation with communication that aimed at forging a strong emotional connect with our audience. Rs. Latest addition to portfolio of Pepsi Beverages. With refreshed pack graphics and clutter breaking advertising. 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.25 Kg grapes= 1L Tropicana 100% Grape juice 1. Slice has driven strong appeal within the category. 10 and Rs. It is devoted towards a healthful lifestyle by ensuring that the products are naturally nutritious and provide the daily benefits that one needs.

In 2008. to deliver a brand philosophy that resonates with the audience. the brand decided to up the ante on the brand from a being led by physical attribute-taste. Kingfisher Airlines Limited and United Breweries Limited. is one of India’s 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. the holding company which in turn owns controlling stakes in other Group companies including United Spirits Limited . great orangey taste and sparkling bubbles encourages one to be more carefree. Now. Mirinda's bold and vibrant colour. UB Group  Company Overview The UB Group led by Dr. fertilizers. spontaneous and playful. and biotechnology The UB Group comprises of United Breweries Holding Limited (UBHL). 30 .Mirinda Mirinda is an international soft drink brand from Spain that was launched in India in 1991. and also has interests in the areas of engineering. Vijay Mallya.

USL acquired Balaji Distilleries Limited in 2008. 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. USL was earlier McDowell and Company Limited. 2009. the procedural formalities are underway for the acquisition which will take retrospective effect from April 1.Group has grown in past through both inorganic (Deccan Aviation. Financial Highlights The Group turnover touched US$ 2. our unstinting commitment to understanding and fulfilling the needs of our Indian consumers has helped UBL to not just retain its leadership. In lacs. that all these international brands are retailed at prices cross line with Kingfisher rather than at a significant premium. but to garner market share. Currently.149 Rs. United Spirits recorded global sales of 90 million cases for the fiscal year that ended on March 31. India has been seeing the entry of all major brewers who have brought their flagship international brands to the Indian market. In million. the first single malt manufactured in Asia and the first diet whisky in the world. USL has a portfolio of more than 140 brands. 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. Whyte & Mackay. United Breweries (Holdings) Limited : Net Sales is 7. which in the first quarter of the financial year has for the first time ever crossed 50%. Widely acknowledged as being the last major growth market for beer in the world.2 bn. This acquisition gave the company the strategic advantage to consolidate the Group’s leadership position in a critical. with deep pockets and international brands. UNITED BREWERIES LIMITED (UBL): UBL continues to rule the roost in the brewing industry. In million.831 Rs.130. the first Tetrapack in the spirits industry in India.6 bn for the financial year ended Mar’08 and the Group market capitalization as on Dec’08 was US$ 3. United Spirits Limited (USL): It is India’s largest and the world’s 2nd largest spirits company. 2009   Brands 31 . 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. 2009 United Spirits Limited: Net Turnover is 71. large and growing State like Tamil Nadu. 2009 United Breweries Limited: Net Turnover 17475.7 Rs. Such is the dominant presence of Kingfisher in this sector. Despite the efforts of these international companies.

1 • Honey Bee • Director’s • John Ex-Shaw Special • Old Tavern • Haywards • McDowell’s Green Label • Gold Riband • Royal Challenge Dabur India Limited • DSP Black • Signature Wine Rum • Celebration K Rum • Old Cask • Rum Pi • Old Adventurer Rum • • Vodka & Gin • White Mischief • Romanov • Blue Riband C  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.1 No.Whisky Brandy • Bagpiper • McDowell’s • McDowell’s No. dynamic leadership and commitment to our 32 .

from the exotic Indian Mango. • 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 • Réal awarded the Reader’s Digest Trusted Brand Gold Award 2009 in the food and beverages category Réal Activ 33 .11 Crore (FY09) Brands   Dabur Fruit based drinks: Réal Réal has been the preferred choice of consumers when it comes to packaged fruit juices. Cranberry. which is what makes India's No. Mausambi.Today. This large range helps cater different needs and occasions and has helped Réal maintain its dominant market share. The results of our policies and initiatives speak for themselves. Tomato. 1 Fruit Juice brand. Peach. 2834. Guava & Litchi to international favourites like Pomegranate. Blackcurrant & Grape and the basic Orange.partners and stakeholders. Apple & Mixed Fruit. Pineapple. 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. A validation of this success is that Réal has been awarded ‘India’s Most Trusted Brand’ status for four years in a row. Réal has a range o f 14 exciting variants .

has a range of light & refreshing fruit beverage. Red Bull 34 . 65 and Rs.Réal Activ is a range of unsweetened juices that contain NO ADDED SUGAR.Réal Burrst comes in an attractive tetrapack highlighting the 'Lite and Refreshing' qualities of fruits that it brings to you. during the manufacturing of juices/ juice blends. the latest addition to Dabur's Foods portfolio. COLOURS OR PRESERVATIVES. Thus. we add back the equivalent quantity of water. LEMONEEZ A 250 ml bottle of Lemoneez is equal to juice 25 lemons approximately. the water is removed to reduce trans portation load. priced at Rs. At our factories. Orange Bytez and Mango Mania. After the juice is pressed from the fruit. All 4 variants are made available in 1 liter and 200 ml packs. Crispy Apple. Réal Activ Juices have as much juice as present in respective fruit. Real Activ juices are made from concentrated juices. Réal 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 Réal Burrst Réal Burrst. 15 respectively. Réal Burrst promises an experience that delivers refreshment through lightness of fresh fruits to you.Available in 4 exciting flavours of Mixed Fruit.

Today Red Bull has annual sales of approx. Mateschitz founded Red Bull. plans for growth and investment in the business year 2010 remain . He fine-tuned the product.  In 2008.unlike traditional colas .stimulates metabolism Red Bull’s effects are appreciated throughout the world by top athletes. In 2009. 1 energy drink is shared by the comp any's 6.683 in 148 countries). Around 4 billion cans of Red Bull are consumed every year. which enjoyed widespread popularity throughout Far East.increases concentration and reaction speed . developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987.  Brands Red Bull Energy Drink Red Bull Energy Drink is a functional beverage with a unique combination of ingredients. in fact it was the birth of a totally new product category. busy professionals. This was not only the launch of a completely new product. active students and drivers on long journeys. Red Bull Energy Drink . The responsibility for the success of the world's No. Red Bull employed 6. now gradually rolling out globally.Company Overview In 1982.increases performance . As of the end of 2009. Dietrich Mateschitz became aware of products called "tonic drinks". 4 billion cans in 160 countries.improves the emotional status . Very much in line with the needs of today's consumers.900 people in 160 countries (end 2008: 5.900 employees around the world. but continue to rest on a solid and conservative financial footing.only contains ingredients of 100% natural sources. Despite the ongoing difficulties presented by the global economic downturn. His idea to market these functional drinks outside Asia evolved whilst he sat at a bar at the Mandarin Hotel in Hong Kong. 35 .improves vigilance ..In 1984. Red Bull extended its product portfolio with Red Bull Energy Shots: Starting in the USA. Red Bull Energy Drink vitalizes body and mind. Red Bull Cola . It has been specially developed for times of increased mental and physical exertion.typically for Red Bull very ambitious. Red Bull launched its own Cola: Red Bull Simply Cola – Strong & Natural.

Red Bull Sugarfree Red Bull Sugarfree is a functional beverage with a unique combination of ingredients. 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. RED BULL COLA The cola from Red Bull is a unique blend of ingredients.SWITZERLAND.USA. In addition. It has been specially developed for times of increased mental and physical exertion.ITALY IRELAND.RUSSIA. Available in AUSTRIA. The result is a natural. it is the only cola which contains both the original Kola nut and the Coca leaf. Red Bull Sugarfree vitalizes body and mind.UNITEDKINGDOM. which comes from using the right plant extracts. not-too-sweet cola taste. all from 100 % natural sources. 36 .

Day Xpress... Eurasia. the Amalgam ated Bean Coffee Trading Company Limited (ABCTCL). more than a decade later. Devils Own. Mochachillo... Aztec. Assam Express. Cappuccino. Chill O Coffee.Cool Blue. Today. Masala Garam Frosteas. Irish Coffee. Popularly known as Coffee Day. Macchiato.000 small growers. Kaapi Nirvana. Cafe Mocha . Drawing inspiration from this overwhelming success. This coffee goes all over the world to clients across the USA. 37 . Europe and Japan.Darjeeling-Divi.Café Coffee Day  Company Overview India’s favorite coffee shop where the young at heart unwind.All Day Refresh. Black Currant B... Strawbrrrrrrry Choco-lattes. With Asia’s second-largest network of coffee estates (10.500 acres) and 11. Café Coffee Day today has cafes in Vienna. Strawberry Blus. Egypt and South East Asia in the near future. Lychee Chill. Our Divisions • Coffee • Coffee • Coffee • Coffee • Coffee Day Fresh ‘n Ground. Black Coffee. Ethiopian Cold Coffees.... Espresso.. 750 crore.. Austria and Karachi. new cafes are planned across Middle East.. Eastern Europe. Hoteas. Solar Eclipse. Hot Choco Latte Fruiteazers.Choco Rocks... making us one of the top coffee exporters in the country. Green Apple Sod.Lemon Freeze..Cafe Latte. What’s more. Coffee Day has a rich and abundant source of coffee. Cafe Frappe. We’re a division of India’s largest coffee conglomerate. Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. ISO 9002 certified company. Mango Shake. it’s a Rs. Tropical Iceber. Lemon Demon. Day Take Away Day Exports Day Perfect Beverages Hot Coffees. Café Coffee Day is the largest organized retail café chain in India with cafes functioning in every nook and corner of the country.

suppliers of packaging materials.Nestle India  Company Overview Nestlé’s relationship with India dates back to 1912. NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita. 38 . MILKYBAR. Nestlé 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. MAGGI. 100% coffee…100% pleasure NESCAFÉ SUNRISE Premium NESCAFÉ SUNRISE Premium is an Instant Coffee-Chicory mixture (Coffee: Chicory = 70%:30%). MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk. when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. importing and selling finished products in the Indian market. MILO. blended and roasted to perfection.224. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers. giving you an incomparable coffee experience.20 Rupees in Millions [2009] Net Sales Growth upto 21. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ. Financial Highlight Gross Sales 52. KIT KAT.3%   Brands BEVEARGES NESCAFÉ CLASSIC NESCAFÉ CLASSIC has the unmistakable taste of 100% pure coffee and is made from carefully selected coffee beans picked from the finest plantations. BARONE. NESTLÉ SLIM Milk.A fine blend of Arabica and Robusta beans i s specially granulated to retain its fresh aroma and flavor. services and other goods.

NESCAFÉ SUNRISE NESCAFÉ 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 NESCAFÉ Cappuccino The world's favourite instant coffee brand NESCAFÉ brings two delicious new Cappuccino variants - NESCAFÉ Choco Mocha and NESCAFÉ Vanilla Latte. Treat yourself to its rich coffee taste and delicious froth.Comforting, relaxing - a delicious cup of NESCAFÉ Cappuccino is a great way to enjoy a true café 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! 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! NESCAFÉ 3in1 Introducing new NESCAFÉ 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

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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 inhouse, 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. 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

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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 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

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A blend of tradition and lifestyle imagery has been used to project this brand.Tamil Nadu. with everything larger than life and beyond ordinary. Lot of innovative marketing activities have given this brand larger than life image. The product was endorsed by Popular film artistes like Sridevi and Renuka Sahane and ace cricketer Saurav Ganguly. 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 mother-in-law too. Innovative marketing has been the hallmark of this brand.daughter-in-law. This brand has triumphantly entered the Guiness Book of World Records with the world's largest Coffee mug. 42 . A host of new packs like internationally accept ed valve packs and the 'Chinna Thambi' (kid brother in Tamil) Rs. Tata Kaapi Tata Kaapi. 1. a 100% Pure Instant Coffee. This brand attempts to strike a balance between Tradition and Modernity. Consumers are positively responding and it is heartening to note the acceptance gained in the most discerning coffee state of them all . was launched in 1996. offer a "Bush to Cup" experience in a cup of pure Instant coffee for a very competitive price. Tata Cafe Tata Cafe.Chicory mixture is the third player in the Instant coffee-chicory segment. an Instant Coffee .50 pack have opened up new markets for the brand. Confident. who both exclaim "Fantastic Malathi".

5. 4. 6.Major Market under Indian Beverage Industry 1. 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 . 7. 3. 2.

non-carbonated drinks and hot beverages.The total turnover of the tea industry is over Rs 8. “Growing health consciousness among India’s young population has brought about a revolution in the Indian non-alcoholic drinks market.000 crore ($ 1.8 billion).000 crore ($1. growing at 35-40 per cent annually. According to the segment level analysis.The carbonated drinks market is close to Rs 6. Fast expanding middle class population that is currently around 350 million.India n on-alcoholic drinks market to grow at 15% CAGR.” the company said.36 billion) with growth at 10-12 per cent. India is the largest producer of tea and accounts for 28 per cent of the global production at 956 million kilograms annually. 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. India has witnessed radical shift in consumption of non-alcoholic drinks over the recent past. It will be closely followed by the energy drinks segment at a CAGR of around 29% during the same period.2 per cent annually.The fruit juices and fruit-based drinks market is close to Rs 5.India is the world’s 5th largest producer of coffee. growing at a rate of 1. 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 2009-2012.000 crore ($1. Within the hot beverages category. accounting for 4 per cent of the world’s production. There is a greater 44 . It has been seen that cola sales have fallen dramatically due to rising health concerns and this seems to have benefited the country’s non-carbonated drinks market such as energy drinks and juices.Indian Non-Alcoholic Beverage Market Non-alcoholic beverages are broadly classified as carbonated drinks.13 billion).

companies are turning to less expensive means of transportation including ox carts and rickshaws. the major soft drink companies priced a 200-milliliter bottle at the equivalent of 11 U. Another challenge facing the major soft drink companies is regaining consumer confidence in the aftermath of a well. so the major soft drink companies are forced to cut profit margins in order to compete there. rural consumers have a lower income level than their urban counterparts and demand lower-cost beverage options.850 is representative of a nation in which the average consumer has insufficient income to engage in discretionary spending. In India. the Coca-Cola and Pepsi soft drink brands suffered a setback in August of last year due to a product contamination scare. A major publicity campaign aimed at regaining consumer confidence seems to be working. soft drink companies have to contain the transportation costs involved in expanding their distribution network into widespread towns and villages. Although that price is not sustainable beyond the short term. spur-of-the-moment beverage sales are commonplace. Both have cut profit margins to the bone in order to fend off competition from low-priced local fruit drinks. during the hot season. In order to position themselves for sales growth. According to data release by the PRB. In order to remain cost competitive. but bottlers need to avoid any more issues that would throw product safety into doubt. India's purchasing power parity per capita of US$2.publicized scandal over the presence of pesticides in some soft-drink products. Rural India is still a highly pricesensitive marketplace.S. On average. Nevertheless. Faced with high fuel and vehicle costs. management hopes that it will be enough to wrest market share away from local products and substantially increase sales volume in 2004. With these strong drivers of growth. only 28 percent of India's population lived in urban areas in 2003. Indian consumers are accustomed to drinking a variety of locally-produced soft drinks that are sold in small stands throughout the country. 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. 45 .awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. cents. Beverage companies cannot afford to ignore India's rural consumers if they wish to expand market share.

Off-trade volume growth was slightly higher than on-trade volume growth. the leading different types of brands and offers strategic analysis of key factors influencing the market . Indian Soft Drink Market India soft Drink markets provide the latest retail sales data. packaging. economic / lifestyle influences. such as energy drinks and reconstituted 100% juice. ISD identifies the leading companies. distribution and pricing data. showing product categories.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. but not at a premium price. company and brand shares. as companies increased their products’ penetration in India. Indian consumers are ready to opt for soft drinks. Innovations. saw high and double-digit growth rates. 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.be they new product developments. with higher volume growth in 2008 than that seen in 2007. distribution or pricing issues. allowing you to identify the sectors driving growth. 46 . India soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006. 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. its convenient on-the-go packaging.

7% of the total carbonated beverage market. Diet coke presently constitutes just 0. The bottled water players. The market witnessed 5. Western markets have preference towards mango flavored drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. such as 100% juice and other non-cola carbonates from all companies in India. lemon and oranges are carbonated drinks while mango drinks come under non carbonated category and different tastes and flavors available. The market size for FY01 was 7000 mn bottles.8% per Annam compared to 22% growth rate in the previous year. 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. Orange flavored drinks are popular in southern states.company sponsored chillers in kiranas and attractive supermarket displays fueled offtrade sales across the hole marketing shares.6% growth in the early‘90s. aluminum cans and PET bottles for home consumption. 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. Cola.  Soft Drinks Available in: All Soft drinks are available in glass bottles. as other national and regional players updated their brand portfolios and increased the volume and demand of their brands in India. Sodas too are sold largely in southern states besides sale through bars. Presently the market growth has growth rate of 7. 47 . Market size for FY00 was around 270 m.n cases (6480mn bottles). Haryana etc. India soft drink market is developing more than every year. All market preference is highly regional based. 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. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. such as Parle Bisleri and Dhariwal Industries. Punjab.

Uttaranchal. In 1838 the first Indian tea from Assam was sent to United Kingdom for public sale. Sikkim. owing to certain specific soil and climatic requirements its cultivation was confined to only certain parts of the country.Cola. Cola products account for nearly 61-62% of the total soft drinks market. 48 . Tamil Nadu and Kerala. West Bengal. Robert Bruce in 1823 discovered tea plants growing wild in upper Brahmaputra Valley. Tripura. Tea plantations in India are mainly located in rural hills and backward areas of North-eastern and Southern States. The other areas where tea is grown to a small extent are Karnataka. The weightage lies with the former due to domestic consumers’ preference. Indonesia and Vietnam. Diet Pepsi etc. Production of green tea in India is small. Thumps Up.Mizoram. India Alcoholic Drinks Market expected to grow over 9% CAGR during 20092013. Manipur. It occupies an important place and plays a very useful part in the national economy. Arunachal Pradesh. Clear Lime and Mango. and Bihar. In addition. Himachal Pradesh. India produces both CTC and Orthodox teas in addition to reen tea. Thereafter. Meghalaya. Major tea growing areas of the country are concentrated in Assam. India has dual manufacturing base. it was extended to other parts of the country between 50's and 60 's of the last century. different flavored drinks are named in different names in all categories. Unlike most other tea producing and exporting countries. Kenya. Coca. namely: Orange. The brands that fall in this category are Pepsi. India soft drinks Market Segmnetation: Segmented on the basis of types of products into cola products and non-cola products.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 country’s middle class consumers. 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. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available. Cloudy Lime. diet coke. China. Nagaland. INDIAN TEA MARKET The tea industry in India is about 172 years old. The competitors to India in tea export are Sri Lanka. Orthodox tea production is balanced basically with the export demand. However.

South Asian countries like Indonesia and Vietnam.e. 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. Indian tea export has been an important foreign exchange earner for the country. Depressed scenario again started since 2001 due to change in consumption pattern. However. Another important point is that.Kgs of tea went for domestic consumption. Another reason for decline in export of Indian tea to Russia is offering of teas at lower prices by China. it is facing competition from Kenya and from other African countries in exporting CTC teas. switch over from CTC to Orthodox as per consumer preference and thus India has lost the Russian market.Tea is an agro-based commodity and is subjected to vagaries of nature. The major competitive countries in tea in the world are Sri Lanka. However. i. While at the time of Independence only 79 M. There was an inherent growth in export earnings from tea over the years. increase in income and standard of living etc. greater urbanisation.Kgs of tea was retained for internal consumption. This is one of the reasons of higher volume of export by Sri Lanka and Kenya compared to India.K has substantial interest in tea cultivation in Kenya. Indian tea exports suffered a set back from 1992-93. USSR happened to be the major buyer of Indian tea accounting for more than 50% of the total Indian export till 1991. Indian Tea Plantation Industry is able to maintain substantial growth in elation to volume of Indian tea production during the last one decade. Sri Lanka and Kenya have an edge over India to offload their teas in any international markets. Kenya.Kgs or about 82% of total production of 981 M. Such a massive increase in domestic consumption has been due to increase in population.There has been a dramatic tilt in tea disposal in favour of domestic market since fifties. Because of absence of large domestic base and due to comparatively small range of exportable items. Despite adverse agro climatic condition experienced in tea growing areas in many years.Kgs or about 31% of total production of 255 M. Till 70s’. in 2008 as much as 802 M. with the disintegration of USSR and abolition of Central Buying Mechanism. 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. U. Kenya is basically a CTC tea producing country. China and Indonesia. China is the major producer of green tea while Sri Lanka and Indonesia are producing mainly orthodox varieties of tea. 49 . 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.

a rise of 10 per cent from 119 million cases in 2009. The total consumption of whisky is estimated to be around 131 million cases in the current year. Tea is also considered as the cheapest beverage amongst the beverages available in India.The total consumption of spirits in the country stood at 200 million cases in 2009. • 2200 registered Tea Exporters. So.K.12. Indian tea industry s having (as on 18. totaling nine liters. The total consumption of alcoholic beverages in India is expected to touch 217. Tea is an essential item of domestic consumption and is the major beverage in India.1 million cases in 2010. it makes business sense for U. A case has 12 bottles. after Idealization due to implementation of FERA Act started tea cultivation in Kenya.9000 Crs.2009 ) • 1692 registered Tea Manufacturers. 50 . which accounts for more than half of the total spirits Consumed in the country.Most of the sterling companies. The Indian alcoholic beverages market is dominated by whisky. Indian Alcoholic Beverage Market Alcohol consumption in India is growing by 8% this year. • Nine tea Auction centres. The total turnover of the Indian tea industry is in the vicinity of Rs. • 5848 number of registered tea buyers. Presently. Tea Industry provides gainful direct employment to more than a million workers mainly drawn from the backward and socially weaker section of the society. to buy tea from Kenya and Kenya became the largest supplier of tea to U. It is also a substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer.K.

Among domestic companies. Diageo. Radico Khaitan -.7 per cent from 39 million cases in 2009. which has brands like McDowell and Bagpiper under its portfolio.is the second-largest firm after United Spirits in the country. The Vijay Mallya-promoted United Spirits. especially the alcoholic drinks segment. is the largest player in the segment -with sales of over 100 million cases per annum. rum is the most popular alcoholic beverage in India and the total consumption is estimated to be at 42. the largest spirits maker globally. Bagpiper.with brands like 8PM and Magic Moments -. 51 . The Indian beer market is dominated by United Spirits' sister concern. 8PM and Officer's Choice. The Indian alcoholic beverage market is currently dominated by local brands such as McDowell. is the second-largest player in the country with brands like Johnnie Walker under its portfolio. 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.4 million cases in the current year.After whisky. a rise of 8. Both companies account for more than 80 per cent share in the beer category.95 Billion Liters in 2008. which is expected to reach 3 Billion Liter mark by 2012 from around 1. XXX. Almost all the segments analyzed in the report are found to be growing at rapid pace even in the phase of economic crisis. collectively known as the semi-premium segment. United Breweries. and Sabmiller.

Seagram. Bacardi Martini. at $1 billion in annual sales. thanks to the middle class's growing thirst for alcohol. The likes of Guinness/UDV. India's liquor market is very prosperous these days. it is expanding 10% a year.The low brand loyalty and price-sensitive consumer behavior is still preventing the Indian market to unfold its full potential. 52 . The result is an all-out war for the Indian drinker--with bootleggers. However. While still relatively small. it will require balanced brand portfolio strategies. This is quite a switch for a nation whose constitution encourages a tee totaling lifestyle. multinationals. and local tycoons slugging it out for a piece of the action. comprising of diverse product mix with superb level of quality and that too on an affordable price. and LVMH are taking full advantage. setting up distilleries and distribution joint ventures or making their booze readily available. This is expected to result into an overall market progress in which the consumer will be benefited the most.

Carlsberg. the other brands in the Indian market are Carling Black Label. Apart from Kingfisher and Foster’s Beer. Kingfisher Strong. wines. due to the positive impact of demographic trends and expected changes like rising income levels. Golden Eagle. India has emerged as one of the fastest growing markets for wine consumption on the global map. The Indian beer Industry has been witnessing a steady growth rate of 7-9 per cent per year for the last ten years. 53 . changing age profile.Premium Lager.Indian Beer Market Drinking practices vary substantially among different countries and different masses. Haywards 5000. starting from beers. to name a few. The alcoholic drinks market is broadly classified into five classes. But both alcoholic beverages are very popular among all ages of people. Beer and wine are perhaps the oldest and most popular of all alcoholic beverages in the world. Dansberg. The Indian alcoholic market has been growing rapidly for the last ten years. liqueurs and others. changing lifes tyles and reduction in beverages prices. hard liquors. Hi-Five etc.

The market is growing at a rate of up to 25% per annum each year. Orissa. to name a few. Rajasthan and Bihar. Grover Vineyards and Sula Vineyards too have made smart strides in a short time span. age preferences will act in favour of the growth of alcoholic (beer and wine) beverages in India in the near future. India presents a huge growth potential for alcoholic beverages sales. With a population base of over 1. this can be a challenging investment for an entrepreneur. Empee Distilleries Ltd.1 Billion. The domestic production of beer and wine is on the rise.C. Mohan Breweries & Distilleries Ltd. and Goa with no units in Assam. 110. Increasing GDP. Jagatjit Industries Ltd. Formulations of beer manufacturing are done with the availability of raw materials in that particular part where the brewery is established.90% T. Champagne Indage has been the pioneer in making French style wine in India.49 Lakhs Return: 34. Tami Nadu. Gujarat. hopeful rationalization of the taxation rules and ban on local country liquor and rising health consciousness. Beer is a popular beverage all over the world and contains alcohol ranging from 8 to 9 %. Recently. companies in the Indian Made Foreign Liquor (IMFL) space like Diageo. especially beer with official statistics reporting a 12 per cent increase in domestic beer production. Radico Khaitan Ltd. Plant capacity: 10000 Bottles/Day Working capital: Rs.42% Plant & machinery: Rs. indicating vast potential for future growth. Other majors players in this field are United Spirits Ltd. etc.P. 549. the consumption of wine is extremely low. 293. Keeping in view the tremendous export potential. U. It is found effective in improving appetite and is considered good for health. Karnataka. Tripura. favourable growth in the demographics with a growing urban middle class. Beer units are concentrated in the state of Maharashtra.I: Rs.25 Lakhs Break even: 52. growth of modern retail formats. it would be worthwhile to explore the possibilities of setting up an export-oriented unit.74 Lakhs  Indian Made Foreign Liquor 54 . United Breweries and Seagrams too have ventured into making wine.

It is still growing by 20 million plus every year. bottle openers. inks.Indian made foreign liquor basically prepared from ethyl alcohol of different concentration with added flavour and coloured bottled hygienically.I: 5. India has been exporting alcohol in a substantial quantities.18 Crores Break even: 35. the competition level in this segment is moderate.00 lakhs Return: 50. though this may have eased in 2003. chemicals etc. mineral waters. The estimated growth rate of demand is 20% per annum with increase in population and other industrial growth and consumption. In contrast. foods. The installed capacity of all those units is estimated of the order of 1400 to 1450 million liters per annum. 55 .I: Rs. Plant capacity: 1.C.93% Plant & machinery: Rs.95 Crores T./Day Return: 70. There is good scope for new comers.). fashion articles for men etc. However.00 lakhs T. 600 million at least are still outside the market for anything except very cheap Country Liquor.00% Apart from Wine. New entrepreneurs may invest in this sector. 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. 450. The population is evidently huge (945 million in 1996 and over 1. thus it asks additional players to provide answers to overflowed demand. gums. all major brands spent heavily on Surrogate brands under the same brand name (on glasses. In India there are about 260 units engaged in the production of alcoholic brandy.86%  Glass Bottles For Beer Glass bottles manufacturing occupies an important part in the glass manufacturing industry in the field of glass container manufacturing. Amongst the various glass items being produced in India. 201.1 Billion during 2004). are glass bottles and containers of all types for pharmaceutical.C. beer & other beverages. 150.00% Plant & machinery: 1. soft drinks.00 lakhs Break even: 44.00. breweries. In practice. Advertising has always been officially illegal. Glass is being more extensively used today than ever before and its progress in India has been quite satisfactory and well maintained. Plant capacity: 10.000 Btls/Day Working capital: Rs.000 Nos. Glass industry is one of the prominent industries in the world and its demand has ever since been on the increase. whisky.

It continues to be expected that Beer and Wine may shortly be permitted to sell in more outlets. the Indian wine industry has been continuously growing over the last ten years. The West is declining due to high taxes. States licence fees.However. Rising incomes of Indian population and exposure to new culture is adding to the higher consumption. Wine volume 56 . These can.The Distribution system is still the same for Beer as for Spirits and Wine. They pay the. Bars and Restaurants. and Bonded Warehouse operators. varying. South India is the largest consumer of IMFL and Beer. at present. All outlets must be licensed. Retailers. only sell Indian-made Liquor over most States. Wholesalers. Awareness about the benefits of wine drinking is also on the rise and wine is gradually becoming a part of urban Indian life style. Tax-paid Country Liquor is most important in North and West. It is more important than North and West together. and the North increasing in Country Liquor and Beer particular Indian Wine Market The Indian wine industry is in its nascent stage.

Value sales of wine were worth just under Rs4. Balaji Hotels and Enterprieses. the consumption of wine is unevenly spread across the country as 4 major cities i. sparkling wine (13%) and rose wine (2%). Herbert sons and Mohan Meakin. Mohan Meakin. Mohan Breweries & distilleries. Recognising the scope of potential. and spirits in the organized sector having a combined share of about 67 per cent are McDowell & Company. which represented an increase of almost 20% in current terms on the previous year. Shiva Distilleries. Mohan Breweries and Distilleries. whereas the demand is growing at 10 to 12 per cent per annum. Hops is another major raw material in short supply. 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.C.6 million litres.. Further. Jagatjit Industries. Goa (8%) & Bangalore (6%) contribute about 85% of total wine consumption. The state has also established two wine parks. Pearl Distilleries. Indian companies producing IMFL use the molasses route for manufacture of IMFL as against the international pracouraging the use of non-molasses route in 57 . Charminar Breweries.00% T. liquors. the Government of India has put more emphasis on the development of the wine industry. Mysore Breweries. and barely measurable per capita consumption. uninterrupted supply of grapes is must to ensure smooth production. Mumbai (40%). And Bottling and Mount Shivalik Breweries. Hindustan Breweries.00% Plant & machinery: 453 Lakh Break even: 32. The Indian wine market is mostly dominated by three major players / Companies. Aurangabad Breweries.sales grew by 17% in 2005. simplified licensing procedure for new wineries. Hence most of thewineries have their own vineyards or make arrangements with farmers / growers for supply of grapes as a backward integration.5 billion. red wine has the largest market share (45% of total wine consumed) followed by white wine (40%). Maharashatra Distilleries. Balaji Distilleries. Despite the rapid growth. after it classified wine as agro based product. Grapes are the key raw material in the production of wines. Shaw Wallace & Co. The ten major beer manufacturers in the organised sector having the combined market share of about 75 per cent are United Breweries. single window clearance system etc. As per the types of wine consumed. keeping up with the pace of growth seen in 2004 to clock reach 4. grant of subsidy. winery has been given status of Food Processing Industry. Most of the hops used for flavouring beer are imported from Germany.I: 1218 Lakh The growth in production over the years has hovered at about 5 to 6 per cent.e. Skol Breweries. wine sales continued to represent a minor proportion of total alcoholic beverages consumption in India. For wine manufacturing. Delhi (31%). Godavari Wine Park in Nashik and Krishna Wine Park in Sangli district Plant capacity: 10500 Ltrs/day Return: 68. The ten key manufacturers are the producers of wines.

The alcoholic beverages industry is one of the few industries that still required licence under the Industries Act (Development & Regulation).India. tax concessions. improvements in processing and manufacturing technologies.000 hectoliters to some units. This has aroused expectations of the industry that the minimum economic size may be hiked to this newer level. Key Risks To The Beverage Industry 58 .000 hectoliters. 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. Through the minimum capacity has been fixed at 50. 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. Adequate availability of raw materials. decontrol of liquor distribution. the government in recent times has issued licences to manufacture 150.

India and Indonesia are all a focus for beverage companies due to their lower market penetration.000 bottled water producers. that water security issues will be one of the biggest threats to developing market potential. Whilst there has been a backlash against bottled water in developed countries as the environmental impact of plastic bottles becomes more apparent.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. There can be little doubt. Let’s first take a look at the alcoholic drinks industry. Consumer demand for purity. driven by a range of socio-economic factors. The market for bottled water is developing rapidly in Asia. So when one considers that India’s current water supply is approximately 740 billion m3. but wealth and the increase in Asian middle classes will play the most significant role.5 trillion m 3. but it has been estimated that by 2030 demand for water in India will grow to almost 1. the industry will clearly be facing a major problem there. The water bottles market is also booming.As water is the essential ingredient in a beverage product. as well as vital for cooling and cleaning during the production process. in Asia it looks set to become an increasing trend. hygiene and convenience is on the increase. Yet China. Health concerns of polluted municipal water sources and increasing water shortages are expected to be key drivers of this. In India the market is expected to grow by 100 percent over the next five years and there are currently more than 2. There will simply not be enough water. however. 59 . The market growth for alcoholic drinks is particularly strong in emerging Asian economies.

Future Projections Of Indian Beverage Industry  Beverage Industry is projected to have overall growth between 8% -8.  All in all.7 litres in 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. Demand for milk and milkbased beverages are also rising.6 litres in 2000 to 8.  The estimated INR 340 bn Indian liquor industry is expected to maintain its CAGR of 15% 60 . annual per capita consumption of packaged beverages is supposed to triple from 2.5 %   Indian non-alcoholic drinks market is expected to at a CAGR of around 15% during 2009-2012.

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