LIQUOR INDUSTRIES

Presented by: Arun kumar Manish Kumar Santa kumar

INDEX
Introduction History Market share Market leaders Change in Govt. policy Economic growth Future aspects

INTRODUCTION
Origin of "liquor" and its close relative "liquid" was from the Latin Verb liquor, meaning "to be fluid  Earliest reference to alcohol ( Somras & Sura) traced to year 2000bc

HISTORY..

First brewery in India set up in Kasauli, in Himalaya mountains by Englishman Edward Dyer in 1820s. Dyers brewery produced asias first beer,called LION.

LIQUOR INDUSRY AN EXAMPLE OF OLIGOPOLY MARKET.

Oligopoly is a form of market where there is domination of a limited number of suppliers and sellers . In Liquor Market UB Group is having a domination in Indian liquor Market.

MARKET SHARE
Category
Whisky Gin Rum Brandy Others Total

share of market (%)

66 1 16 16 1 100

Market Share

Whisky Gin Rum Brandy Others

Market leaders
UB

Group is the market leader

in the alcoholic beverages industry. Largest producer of beer with approximately 48% market share. Market leaders in Spirits division with about 60% market share.

Market leaders contd

Other

major players in spirit industry.(IMFL) khaitan 12% Meakin 9% 8.5%

Radico Mohan

Jagatgit

CURRENT SCENARIO

However post-globalization, the scenario is dramatically opposite. Most contemporary Indians have unearthed themselves from religious bindings and seem to harbor liberal views regarding liquor intake. The significance of alcohol, quite surprisingly, is class-specific;

For Elite class It is prestige issue. For Middle class it represents Modernity and sophistication.  For Lower class An antidote to eliminate thoughts of social and economic deprivation.
 

CHANGE IN GOVT. POLICY

The governments decision to cut duty on the liquor imports(2002-03) has reinvigorated the liquor business. The paradigm shift in the policy of the government stems from the fact that alcohol contributes to over 10% of the total sales tax revenue. Bagpiper, McDowell, Seagram, Whyte and Mackey, Old Traven and Kingfisher are some of the brands flourishing in the Indian liquor markets.

GROWTH OF LIQUOR INDUSTRY

SEGMENT

VOLUME (mn cases) 137

GROWTH RATE

Volume (milloins cases)

250

BEER

12%

200
COUNTRY LIQUOR IMFL WHISKY BRANDY RUM VODKA GIN OTHERS 225 7%

150
160 86 28 38 4.5 3.4 3 12% 10% 6% 8% 25% 10% 7%

100 50 0 Country Liquor Whisky Vodka Beer Rum Gin Brandy Others IMFL

Volume (milloins cases)

Economic Growth
Research

has suggested that around 50% of all consumption of liquor in India is not recorded. drivers for growth in total consumption are: - Population growth - Average age of initiation into drinking coming down - Favorable change in societal perception

Some

ECONOMIC GROWTH contd

Increase

in purchasing power and a constantly upgrading consumer base. Opening up of trade channels.

INDIAN WINE CONSUMPTION

WHAT STATISTICS SAY

India has been one of the largest producers of the alcohol in the world and there has been steady increase in its productions over last 15 years. India is the dominant producer of alcohol in the SouthEast Asian region with 65% of the total share and contributes around 7% of the total alcohol beverage imports into the region. There has been steady increase in the production of alcohol in the country, with production doubling from 887.2 million liters in 1992-93, to 1732 million liters in 2000-01, to 2450 million liters in 2009-10.

FUTURE ASPECTS

Indian Liquor Industry expected to grow by 19% per annum. Country liquor likely to grow 400 million cases by 2015-16 Beer likely to grow to 500 million cases by 2015-16 Indian Companies exporting wine & also making global acquisitions.