By: Ekansh

Introduction
Between 15 and 20 per cent of Indian people

consume alcohol. Over the past twenty years, the number of drinkers has increased from one in 300 to one in 20. India is predominantly a hard spirits market and beer is a minority preference. The Hindustan Times says that 65 per cent of the Indian liquor market is controlled by whiskey manufacturers.

 The varieties of alcohol manufactured for

consumption in India are: 1. Beer (5%-15%) 2. Country Liquor (more than 40%) 3. Indian Made Foreign Liquor (IMFL) 4. Wines (12%-16%)
The beer industry is highly regulated. 26 different

alcohol specific taxes constitute about 50% of the consumer price which is amongst the highest in the world.
Beer is actually taxed 60% more than hard liquor.

 Major revenue contributor to state govts hence it is unlikely

that the level of taxes or control would reduce.

In fact, courtesy the high duty levels, the Indian market has

not been flooded with cheap imports.

Key IMFL consuming states-

Andhra Pradesh-18% Karnataka-18% Tamil nadu- 16% Kerala-8%

The state of Kerala stands first in per capita consumption

of liquor at 8.3 liters followed by Punjab 7.9 liters.

Major Players
Diageo-Smirnoff, VAT69, Johnnie Walker. United spirits Whyte and Mackay, Black Dog, Antiquity,

White Mischief, Signature, Royal Challenge, McDowells, Bagpiper.

SABmillers Haywards, Foster. Radico Khaitan- 8pm, After Dark, Magic Moments,

Contessa.
Pernod Ricard- Chivas, Seagrams Blenders Pride.

Growth pattern
The Indian beer industry has been witnessing steady

growth of 7-9% per year over the last ten years.

The rate of growth of IMFL has remained steady in

recent years, with volumes passing 155 million cases during the 2008 from a mare 70 million cases in 2002.

2010-2011
Total Indian Alcohol industry-

660 million cases

Beer-181 million cases

Distilled spirits-478 ml cases

IMFL-236 ml cases Country liquor-242ml cases

Wine-Rs.6 billion

Case is defined as 12 bottles of 750ml for distilled spirits and 12 bottles of 650ml for beer.

 The sector grew at a compound annual growth rate of

13.2% for the period spanning 2004-2008. 12% for the period spanning 2005-09. 18.9% for the period spanning 2006-10.

Vodka, the fastest growing IMFL segment registered a

CAGR of 44.4% in the Past 5 Years.

Wine
Indias wine consumption is rapidly

increasing and is forecasted to grow at a compounded annual growth rate of 27 per cent from 2010-12.
The consumption of imported wines will rise at a CAGR of

around 33 per cent during 2010-2012, well above the industrys overall growth. the total alcohol beverage industry.
more than 10 million cases.

The value of the Indian wine market is around 2 per cent of In the next ten years the wine consumption could reach

Scope
Consumption of alcohol has

saturated in many countries, while India offers immense growth opportunities. Rising disposable income. Per capita liquor and beer consumption is extremely low in India-hence latent demand potential. Growing social acceptance of alcohol consumption and a large young population. Women in India have also started consuming more alcohol.

Expected Growth Rate