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Alcoholic Beverages Market – India

July 2017
Executive Summary

• Alcoholic beverages market in India is the third largest liquor market in the world
• Alcoholic beverages market in India is expected to expand at a CAGR of X% between FY 2016 and FY 2026, to reach a value of INR X tn from its FY
2016 value of INR X tn
Market Overview • Ban on alcohol in some regions of India such as Bihar, Kerala, Gujarat has adversely affected the alcoholic beverages market in the country
• Rise in income and increasing social acceptance are expected to support the growth of alcoholic beverages market in India
• Major competitors such as Pernod Ricard, SABMiller, United Spirit Ltd. are launching new products in the premium segment to lure upper class people

Drivers Challenges
 Rising income and increased spending on alcoholic  High cost of operation
beverages  Ban on advertisements
Drivers and  Increased rural consumption  Tax reforms
Challenges  Increased alcohol accessibility and availability
 Premiumization
 Favorable Demographics
 Growing urbanization and changing lifestyle

Major Players
Competitive Allied Blenders and Distillers Pvt. Ltd. Carlsberg India Pvt. Ltd. John Distilleries Ltd. Mohan Meakin Ltd.
Landscape
Pernod Ricard India Pvt. Ltd. Radico Khaitan Ltd. Tilaknagar Industries Ltd. United Breweries Ltd.

Alcoholic Beverages Market in India 2017 2

Socioeconomic Indicators

Market Overview

Trade Analysis

Market Influencers

Competitive Landscape

Recent Developments

Appendix

3
Socioeconomic Indicators

Total Population

mn
X%
1,500

1,000

500

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Population Density

Persons per sq. km

X%
500
400
300
200
100
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Alcoholic Beverages Market in India 2017 4

Market Definition & Structure

• Alcoholic beverages are drinks that contain ethanol or ethyl alcohol

SAMPLE
• Alcohol is prepared through a process called fermentation
• Fermentation is a natural process when the yeast converts the sugar contained in fruit, cereals, and sugar-canes into alcohol
• As the yeast is fed by sugar, alcohol and carbon dioxide are produced
Sugar → energy + alcohol + carbon dioxide

Alcoholic Beverages

X X X

X X X X

X X X X

Focus of study

Alcoholic Beverages Market in India 2017 5

Market Overview

Market Size & Growth Forecast

INR tn
6
X%
4

0
FY 2016 FY 2017e FY 2018e FY 2019e FY 2020e FY 2021e FY 2022e FY 2023e FY 2024e FY 2025e FY 2026e

Current Market Scenario

• Alcoholic beverages market in India is expected to expand at a CAGR of X% between FY 2016 and FY 2026, to reach a value of INR X tn from its FY 2016 value of INR X tn
 Alcoholic beverages market in India is the third largest liquor market in the world in terms of sales
 It is considered as a sunrise industry owing to its high growth potential and increasing social acceptance
• xx

Alcoholic Beverages Market in India 2017 6

Market Overview (Continued)
SAMPLE
Indian Made Foreign Liquor (IMFL) Market in India

Market Size CAGR (FY 2016 - FY 2026)

FY 2016 FY 2026e
X%
INR X INR X

Beer Market in India

Market Size CAGR (FY 2012 - FY 2017)

FY 2012 FY 2017e
X%
INR X INR X

Alcoholic Beverages Market in India 2017 7

Market Overview (Continued)

State-Wise Sales (FY 2016)

SAMPLE Region-Wise Domestic Sales (FY 2016)

Revenue from Alcohol

States
(INR bn)
120%
Tamil Nadu
100%

Haryana 80%

60%
Maharashtra
40%

Karnataka 20%

0%
Uttar Pradesh North East South West

Telangana
United Breweries Mt. Shivalik Carlsberg India
Andhra Pradesh SABMiller AB-Inbev Others

Madhya Pradesh

Rajathan

Punjab

Alcoholic Beverages Market in India 2017 8

Market Overview (Continued)
SAMPLE
States With Highest Consumption of Toddy (Per Capita / Per Week) (FY 2016)

Rural Urban
ml ml
800 80

600 60

400 40
200 20

0 0
Andhra Bihar Jharkhand Kerala Madhya Andhra Bihar Arunachal Kerala Chattisgarh
Pradesh Pradesh Pradesh Pradesh

States With Highest Consumption of Country Liquor (Per Capita / Per Week) (FY 2016)

Rural Urban
ml ml
1,000 600
800
400
600
400
200
200
0 0
Arunachal Assam Jharkhand Nagaland Tripura Arunachal Odisha Jharkhand Manipur Assam
Pradesh Pradesh

Alcoholic Beverages Market in India 2017 9

Market Overview (Continued)
SAMPLE
States With Highest Consumption of Beer (Per Capita / Per Week) (FY 2016)

Rural Urban
ml ml
250 400
200 300
150
200
100
50 100

0 0
Arunachal Sikkim Karnataka Rajasthan Tamil Nadu Arunachal Sikkim Goa Andhra Delhi
Pradesh Pradesh Pradesh

States With Highest Consumption of Foreign Liquor/ Wine (Per Capita / Per Week) (FY 2016)

Rural Urban
ml ml
100 250
80 200
60 150
40 100
20 50
0 0
Sikkim Kerala Andhra Karnataka Arunachal Arunachal Sikkim Himachal Kerala Meghalaya
Pradesh Pradesh Pradesh Pradesh

Alcoholic Beverages Market in India 2017 10

Market Segmentation
SAMPLE Player-Wise Sales of Beer

FY 2014 FY 2015

United Breweries SabMiller Carlsberg Mohan Meakin Mount Shivalik Others

Player-Wise Sales of Spirits

FY 2014 FY 2015
Diageo Pernod Ricard Allied Blenders & Distillers Radico Khaitan John Distilleries Others

Alcoholic Beverages Market in India 2017 11

Market Segmentation
SAMPLE Brand-Wise Sales of Beer

FY 2014 FY 2015

Kingfisher Haywards knock Out Tuborg Carlsberg Others

Brand-Wise Sales of Spirits

FY 2014 FY 2015
McDowell’s Officers Choice Royal Stag Imperial Old Tavern Others

Alcoholic Beverages Market in India 2017 12

Export : HS Code 2204
SAMPLE Export (Value)

INR mn
600 X%

400

200

0
FY2013 FY2014 FY2015 FY2016 FY2017

Country-Wise Segmentation (Value-Wise)

UAE Netherland
Netherland Sri Lanka
Sri Lanka UAE
Japan France
UK UK
Bhutan Japan
Others Others

FY2016 FY2017
HS Code 2204 refers to wine of fresh grapes, including fortified wines; grape must other than that of heading 2009

Alcoholic Beverages Market in India 2017 13

Import : HS Code 2204
SAMPLE Import (Value)

INR mn
2,000
X%
1,500

1,000

500

0
FY2013 FY2014 FY2015 FY2016 FY2017

Country-Wise Segmentation (Value-Wise)

France France
Australia Australia
Italy Italy
UK UK
Chile Chile
USA USA
Others Others

FY2016 FY2017
HS Code 2204 refers to wine of fresh grapes, including fortified wines; grape must other than that of heading 2009

Alcoholic Beverages Market in India 2017 14

Market Drivers
Rising income and increased spending on
alcoholic beverages
• Per capita disposable income in India is
increasing at a steady rate and is resulting
in demand for alcohol
• xx
Alcoholic Beverages Market in India 2017
Increased rural consumption
• Increase in literacy level in rural areas has
improved standard of living of rural
consumers, and they are more inclined to
buy Indian Made Foreign Liquor instead of
country liquor
• xx
Increased alcohol accessibility and
availability
• There are a variety of alcoholic brands
available in the market that caters to
people belonging to different income
groups such as low-end brands and high-
end brands
• xx
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Competition

List of Major Players

Name Website

Company 1

Company 2

Company 3

Company 4

Company 5

Company 6

Company 7

Company 8

Company 9

Company 10

Alcoholic Beverages Market in India 2017 16

Public: Domestic Company – Company A

Company Information Business Description

• xx
Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products and Services Key People

Category Products/Services Name Designation

xx xx Person 1 Chief Executive Officer

xx xx Person 2 Chief Operating Officer

xx xx
Person 3 Head – Operations
xx xx
Person 4 Chief Marketing Officer

Alcoholic Beverages Market in India 2017 17

Public: Domestic Company – Company A (Contd.)

Financial Snapshot Key Ratios

Particulars 2013 2014 2015 2016
Total Income Net Profit / Loss
Profitability Ratios
a x
Gross Margin %
b y
Net Income Margin %
z
c EBITDA Margin %
x
d EBITA Margin %
c
e EBIT Margin %
d
Return on Assets %
f0 e
FY 2012 FY 2014 FY 2015 FY 2016 Return on Capital %
Return on Equity %
Return on Common Equity %
Liquidity Ratios
Current Ratio
Quick Ratio
Key Financial Performance Indicators
Leverage Ratios
Indicators Value Total Debt/Equity
Total Debt/Capital
Market Capitalization (INR mn)
Interest Coverage
Efficiency Ratios
Total Enterprise Value (INR mn)
Total Asset Turnover
EPS (INR) Fixed Asset Turnover
Accounts Receivable Turnover
PE Ratio (Absolute)
Inventory Turnover

Alcoholic Beverages Market in India 2017 18

Public: Domestic Company – Company A (Contd.)

Key Business Segments Key Geographic Segments

100%
100%
80%
80%
60% 60%
40% 40%
20% 20%
0% 0%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2013 FY 2014 FY 2015 2016

Segment 1 Segment 2 Segment 3 Country 1 Country 2

Alcoholic Beverages Market in India 2017 19

Private: Domestic Company – Company B

Company Information Business Description

• xx
Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products and Services Key People

Category Products/Services Name Designation

xx xx Person 1 Chief Executive Officer

xx xx Person 2 Chief Operating Officer

xx xx
Person 3 Head – Operations
xx xx
Person 4 Chief Marketing Officer

Alcoholic Beverages Market in India 2017 20

Recent Developments
Date Category Description Impact

May 6, 2017 Product Launch Medium

Feb 28, 2017 Promotions and Branding Medium

Feb 6, 2017 Product Launch Medium

Sep 26, 2016 Restructuring Medium

Jul 13, 2016 Capacity Expansion Medium

Dec 18,2015 Product Expansion High

Alcoholic Beverages Market in India 2017 21

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