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White Spirits Market – India August 2010
White Spirits Market – India August 2010

White Spirits Market – India

August 2010

Executive Summary

Market
Market
Drivers & Challenges
Drivers &
Challenges
Trends
Trends
White Spirits Market in India was valued at INR X bn in 20– and is
White Spirits Market in India was valued at INR X bn in 20– and is expected to grow at Y% over
20-- - --
The market primarily includes – Vodka and Gin with white rum and tequila accounting for a
small share
Changing profile of consumers and their propensity to experiment with premium brands and
varieties of spirits has fueled growth potential in the market
Drivers:
Challenges:
Rising income levels
Changing lifestyles & higher acceptance
High tax structure and improper
regulations
Advertising ban on alcohol
Huge market potential
Entry of International brands
Growth in Organized retail

Innovative packaging and flavours Increasing joint ventures Rising mergers and acquisitions

Promotional activities Launch of flavoured energy drinks

Competition
Competition

The market has a huge influx of foreign players who have either set up joint ventures or have set up subsidiaries to capitalize on the potential in the market Market entry has barriers owing to the stringent regulations and tax structure of Indian government Leading players are also setting up their own liquor outlets to reach the end consumers in an efficient manner

Introduction •Market Overview •Drivers & Challenges •Trends •Competition

White spirits is a very small segment of the IMFL market

however it is showing huge growth prospects

IMFL Market
IMFL Market

IMFL Market – Overview

Market Size & Growth

• IMFL market in India is characterized by brown and white spirits

White spirits occupy a very nominal share

• With growing number of people in the drinking age,

the industry on a whole is set to grow rapidly

• The industry has rapidly spread to even Tier II and

Tier III cities with leading players offering their

brands through licensed outlets

IMFL Market (Segmentation by Players)

Company 5

E% D% C% B%
E%
D%
C%
B%

Company 4

Company 3

A% Company 1

Company 2

INR bn A% x q p y z 0 2008 2009 Spirits Market Segmentation
INR bn
A%
x
q
p
y
z
0
2008
2009
Spirits Market Segmentation

Segment 4

Total Market – INR Q bn

R%

Q%

S%

P%

Segment 3

Segment 2

Segment 1

Source:

White spirits market in India is dominated by vodka and is emerging as a lucrative segment in the liquor industry

White Spirits Market
White Spirits Market

White Spirits

Market

White Spirits Market – Overview

Market Size & Growth

White spirits is an emerging segment in the liquor market in India and accounts for a% of the industry

Led by vodka, white spirits also comprises of gin, white rum

and tequila

With changing profile of drinkers, especially in the age group

c-d yrs, the consumption of white spirits such as vodka and gin

is fast catching up in India

Social drinking habits and experimenting attitude with variety

of drinks as cocktails is spurring growth especially in vodka

Launch of international brands in the premium spirits segment

is attracting consumers to shift from dark spirits like A and B

~ A mn cases of white spirit was sold in 20-- - --; a growth
~ A mn cases of white spirit was sold in 20-- - --; a growth of
Z% over the previous year wherein vodka occupied b%
INR bn
B%
b
j
a
k
l
0
2008
2009

Growth of Segments

INR bn B% b j a k l 0 2008 2009 Growth of Segments % 20YY

% 20YY to 20YY

p e q d b r a c 0 Segment Segment Segment Segment Segment 1
p
e
q
d
b
r
a
c
0
Segment
Segment
Segment
Segment
Segment
1
2 3
4 5
Source:
Segment 5 has Predominant been the fastest growing segment share of 1 l and is
Segment 5 has
Predominant
been the fastest
growing segment
share of 1 l
and is expected to
bottles
maintain its
position

p

q

0

-r

% 20XX to 20XX j i f g -h Segment Segment Segment Segment Segment 1
%
20XX to 20XX
j
i
f
g
-h
Segment
Segment
Segment
Segment
Segment
1
2 3
4 5

Vodka consumption in India is growing manifold with changing profiles of drinkers

Vodka Market – Overview Market Size & Growth • Vodka forms a huge market under
Vodka Market – Overview
Market Size & Growth
• Vodka forms a huge market under white spirits in
India followed by gin and white rum
Vodka’s current share is ~A-B% of the total liquor
industry and is projected to grow to C-D% in X yrs
• Consumption is growing owing to its increasing
popularity amongst youngsters as it is viewed as
very trendy and youthful
mn cases
• Maximum consumption of Vodka takes place in W
a
part of India which is followed by X, Y and Z
y
• More than Z% of vodka sales in Asia is from the
b
B%
Indian market
x
c
w
Vodka Market Segmentation (20--)
v
d
u
Market
Price Band
A%
t
Segments
Brands
Share
(INR)
s
e
r
Segment 1
A%
X-Y
Brand 1, Brand
2, Brand 3
p q
0
B%
P-Q
Brand 4, Brand
5, Brand 6 ,
Brand 7
2006
2007 2008
2009 2010
2011
2012
2013 2014
2015
Segment 2
Forecast

Source:

Drivers & Challenges – Summary

Drivers Rising income levels Changing lifestyles & higher acceptance Huge market potential Entry of International
Drivers
Rising income levels
Changing lifestyles & higher
acceptance
Huge market potential
Entry of International brands
Growth in Organized retail

Challenges

High tax structure and improper regulations

High tax structure and improper regulations

Advertising ban on alcohol

Advertising ban on alcohol
High tax structure and improper regulations Advertising ban on alcohol WHITE SPIRITS MARKET IN INDIA 2010.PPT

Trends – Summary

Innovative packaging and flavours

Key Trends
Key
Trends

Launch of flavoured energy drinks

Increasing joint ventures

Promotional activities

Rising mergers and acquisitions

Major Domestic Players (2/9)

Company Snapshot: Company 1

Corporate Information

Financial Performance

Headquarters

State 1

Founded

19XX

Products

Product 1, 2, 3, 4

Key People

Mr. X – MD

Revenue Revenue Profit INR mn Profit / Loss INR mn d p t c q
Revenue
Revenue
Profit
INR mn
Profit / Loss
INR mn
d
p
t
c
q
b
u
a
r
v
s
0
0
2005-06
2005-06

2006-07

2007-08

2008-09

Business Highlights

• Is engaged in the business of manufacture, marketing and sale of Industrial Alcohol comprising X and Y, Z, and Indian

Made Foreign Liquor (IMFL)

• In the IMFL segment, it has brands like ‘Brand 1

• Launched its own IMFL brands in state 1, 2, 3, 4, 5, 6, 7

Has 2 distilleries in state 1 and 2 Expansion Plans:

The company has embarked upon an expansion plan of INR X mn to upgrade and expand its production facilities,

along with setting up latest facilities in utility management to enable it to lower the cost of production while

continuing with its production

Source:

it to lower the cost of production while continuing with its production Source: WHITE SPIRITS MARKET

WHITE SPIRITS MARKET IN INDIA 2010.PPT

9

Thank you for the attention

The White Spirits Market report is part of Research on India’s Food & Beverage Industry Series. For more detailed information or customized research requirements please contact:

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