...ME PROJECT REPORT | | ON INDIAN LIQUOR INDUSTRY Table of Contents 1. INTRODUCTION…………………………………………………………………….4 2. INDUSTRY OVERVIEW…………………………………………………………..5 3. EVOLUTION OF MARKET STRUCTURE…………………………………..8 4. MARKET PLAYERS AND STRATEGIES…………………………………….10 5. NATURE OF COMPETITION……………………………………………………16 6. ENTRY BARRIERS FOR POTENTIAL ENTRANTS…………………….19 7. CONCLUSION………………………………………………………………………… 21 LIQUOR INDUSTRY IN INDIA INTRODUCTION The Indian alcoholic beverages market is gradually opening up as quantitative restrictions are being lifted, import duties are being lowered and domestic regulations are being simplified. These developments are attracting the attention of foreign players, who are faced with a slowdown in developed markets. According to some recent reports, by 2005, the total supply of liquor in the world will be close to 282 hl but consumption will be only about 198 hl. In such a scenario, India would be an attractive market for international players. An estimated 10 million people consume alcohol in India, out of a population of about 1.2 billion. The liquor industry in India is highly government regulated in terms of constraints on manufacturing, storage as well as distribution. The industry faces threat of prohibition in several states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc. However, the deep-rooted social conditioning against alcohol consumption is gradually starting to...
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...ORGANISATIONS- THEORY AND PRACTICE PROJECT – WORKSHEET 1 group- L2 Name of the Adopted Company : United Spirits Limited The business the company is into: United Spirits Limited is the largest spirits company in the world by volume. United Spirits Limited (USL) is involved in the production, distribution and sale of alcohol beverages across different regions in India. It is also involved in the exports of alcohol beverages to over 37 countries thus enjoying a global footprint as well. Besides Whyte & Mackay and Bouvet Ladubay being 100% subsidiaries of USL, the company has 22 millionaire brands (selling more than a million cases a year) in its portfolio and enjoys a strong 59% market share for its first line brands in India. Its brands include Dalmore, Black Dog Reserve Scotch Whisky(Scotch); Antiquity Blue, Signature(Indian whisky); Honey Bee(Brandy); Blue Ribbon( Gin); Romanov(vodka)etc. A brief introduction to the History of the company: The company was established in 1826 by McDowell & Co as a trading company with its headquarters in Madras, by an enterprising Scotsman Angus McDowell. McDowell’s rapidly became the preferred purveyors of fine imported liquors and cigars that gratified the rich souls in the British India. In 1951, Vittal Mallya acquired McDowell’s initiating a new era in the history of the company. Its first distillery was established in Cherthala in 1959 in Kerala and began bottling brandy. Its first product was launched in 1962 which...
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...Indian Wine Industry January 2011 - Posts * ------------------------------------------------- S p e c i a l f e a t u r e AP market to grow by 10% After a total sale of 40 million cases of IMFL between 2009-2010, the Andhra Pradesh Beverages Corporation Limited (APBCL) is expecting a growth of 10 per cent in volume in the coming financial year. This is in keeping with the sales over the last three years which have been increasing consistently. Since April 2010 the monthy sales have fluctuated, with the highest sale months being July and August (refer to table). Last year (2009-2010) the total sales of the AP Beer market decreased to approximately 24.9 cases from 29.2 million cases in the previous year (2008-2009), however an estimate of the monthy sales this year show an increase from 2 million (2009- 2010) to 2.5 million (2010-2011). AP Beverages Corporation Limited (APBCL) is the sole wholesale distributor of Indian made foreign liquor (IMFL) and other alcoholic drinks in the state of Andhra Pradesh. Formed in 1986 with the objective of providing pure, clean and hygienically packed arrack, the Corporation also has the functions of setting up Arrack Bottling units for carrying arrack operations and controlling the IMFL Depots located in the state. The Corporation invites tenders from manufacturers all over the country by issuing an open tender notification in the press for supply of IMFL and Beer on Rate Contract basis. The Government constitutes a Subcommittee...
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...ICRA EQUITY RESEARCH SERVICE UNITED SPIRITS LIMITED September 20, 2011 Industry: Alcoholic Beverages ICRA Online Grading Matrix Valuation Assessment A Fundamental Assessment Fundamental and Valuation Grades ICRA Online has assigned the Fundamental Grade ‘4’ and the Valuation Grade ‘B’ to United Spirits Limited (United Spirits). The Fundamental Grade “4” assigned to USL implies that the company has “strong fundamentals”. The Valuation Grade assigned to implies that the company is “moderately undervalued” on a relative basis (as on the date of the grading assigned). Company Profile United Spirits is the largest spirits company in India’s branded spirits market with more than 43% market share. With 112.2 million cases in sales in FY11, the company surpassed Diageo Plc to become the largest spirits company in the world. United Spirits has a very strong and wide portfolio of spirits with 21 of its brands selling more than a million cases a year. The company enjoys a strong 59% market share for its first line brands in India. United Spirits has a well established manufacturing and distribution footprint comprising of 37 owned manufacturing units, 57 contract manufacturing tie-ups and distribution network covering almost 98% of the sales channel in India. The company has grown rapidly over the years through several acquisitions and greenfield expansion. Acquisition of Shaw Wallace in 2005 (second largest player at that time in India) and Whyte & Mackay (fourth largest scotch...
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...A. EXECUTIVE SUMMARY Page 2 B. INTRODUCTION a. COUNTRY OVERVIEW Page 3 b. INDUSTRY ANALYSIS Page 4 C. SITUATION ANALYSIS c. COMPANY ANALYSIS Page 5 d. MACRO ENVIRONMENT ANALYSIS Page 6 e. COMPETITIOR & INDUSTRY ANALYSIS Page 10 f. CUSTOMER ENVIRONMENT Page 15 D. STRATEGY FORMULATION g. THREATS OPPORTUNITY WEAKNESS STRENGTH ANALYSIS (TOWS) Page 17 h. PROBLEM STATEMENTS & POTENTIAL CHALLENGES FACED Page 18 E. INTERNATION ENTRY SELECTION Page 19 F. OVERACHING STRATEGY SELECTION Page 20 G. MARKETING MIX PROGRAMME DEVELOPMENT Page 23 i. PRODUCT j. PRICE k. PLACE l. PROMOTION H. IMPLEMENTATION & CONTROL m. RECOMMENDATIONS & CONCLUSION Page 27 References & Appendix Page 28 A. EXECUTIVE SUMMARY Any business which sets its eye on the Indian market understood the fact that selling its product in such a big country is not easy. China, India, Brazil, these emerging marketing are constantly being target as business people alike know that these market are extremely attractive. The fact that wine growth rate was at 20% annually, India in its own way became an attractive market for Wine producers and exporters. Opportunity thrives throughout urban cities of India, Mumbai, New Delhi and Banglore. However, risk such as government protectionism regime of alcohol...
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...abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a lagerin the 1960s, when due to East European influence, most brewers in India switched from brewing Ales to brewing lagers. Today no brewer in India makes India Pale Ale. All Indian beers are either lagers (4.8% alcohol — such as Australian lager) or strong lagers (15 % alcohol - such as Australian Max super strong beer). In various parts of north-eastern India, traditional rice beer is...
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...sign of the end of recession start appearing on the horizon. With this positive transformation taking place at the macro level, your company too has started gearing itself to reach new heights of business success. It will be our endeavor to take advantage of the emerging optimism in the global as well as Indian economy in the larger interest of our stakeholders. India today is at the cusp of a major growth era that may last for a very long time. Your company is well poised, after emerging relatively well from the recessionary period, to ride the rising curve of Indian growth story. While we intend to retain the ‘old is gold’, we are fully conscious to grab the new business opportunities that synthesize well with the growth pattern of the Indian economy. Year 2009-10 was indeed a fruitful year as we achieved an overall 23% net revenue growth. Our total volume stood at 14.6 mn c/s. Our brands like Magic Moments Vodka, 8 PM Whisky and Old Admiral Brandy were top earners and our new brand last year, Morpheus, struck a chord with our esteemed consumers. I assure you that your company will continue to gain significant market share in the Brown Spirits and the fastest growing White Spirits segments in the premium and super premium categories. Research backed innovative product launches along with meeting the growing aspirations of the young will remain our main focus for the times to come. We have launched two brands in whisky segment i.e. “After Dark and Eagles Dare”. Though the new initiatives...
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...firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Disclosures and analyst certifications are located in Appendix 1. Anand Rathi Research India Equities 18 April 2012 India Consumer - Alcoholic Beverages – Holding the fort Snapshot of liquor industry in India Liquor industry break-up Imported 3% Beer 13% Indian-made foreign liquor (IMFL) industry break-up Rum 20% Beer industry break-up Premium 1% Country liquor 48% Brandy 16% IMFL 36% Whisky 59% Standard 45% Strong 54% White spirits 5% Per-capita consumption: IMFL (ltr/p.a./person) 120 100 80 Per-capita consumption: beer (ltr/p.a./person) 140 120 80 Market share: IMFL and country liquor (%) 100 100 80 60 40 20 0 Brazil South Africa Hong Kong Philippines Indonesia Mexico Malaysia China Australia Taiwan Russia India Argentina Thailand Vietnam Egypt 60 40 20 60 40 20 0 New Zealand Denmark India Germany China 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 IMFL Country liquor Market share of IMFL companies Others 13% Mohan Meakins 9% Tilak Nagar 4% Jagatjit 9% Radico 12% Source: Companies, Anand Rathi Research Market share of beer companies Others 13% Mohan Meakins 6% UB 50% SAB Miler 31% Region-wise market structure: IMFL North 12% East 9% South...
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...firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Disclosures and analyst certifications are located in Appendix 1. Anand Rathi Research India Equities 18 April 2012 India Consumer - Alcoholic Beverages – Holding the fort Snapshot of liquor industry in India Liquor industry break-up Imported 3% Beer 13% Indian-made foreign liquor (IMFL) industry break-up Rum 20% Beer industry break-up Premium 1% Country liquor 48% Brandy 16% IMFL 36% Whisky 59% Standard 45% Strong 54% White spirits 5% Per-capita consumption: IMFL (ltr/p.a./person) 120 100 80 Per-capita consumption: beer (ltr/p.a./person) 140 120 80 Market share: IMFL and country liquor (%) 100 100 80 60 40 20 0 Brazil South Africa Hong Kong Philippines Indonesia Mexico Malaysia China Australia Taiwan Russia India Argentina Thailand Vietnam Egypt 60 40 20 60 40 20 0 New Zealand Denmark India Germany China 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 IMFL Country liquor Market share of IMFL companies Others 13% Mohan Meakins 9% Tilak Nagar 4% Jagatjit 9% Radico 12% Source: Companies, Anand Rathi Research Market share of beer companies Others 13% Mohan Meakins 6% UB 50% SAB Miler 31% Region-wise market structure: IMFL North 12% East 9% South...
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...IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN ITS EXTRAORDINARY ORIGINAL CIVIL JURISDICTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA WRIT PETITION NO. [Ω] OF 2011 In the matter inter alia of Art. 21 r/w. Art. 14 of the Constitution; And In the matter of the provisions of the Bombay Prohibition Act, 1949 [as applied to the State of Maharashtra (except Wardha District)]; And In the matter of Part VI-A of the Bombay Foreign Liquor Rules, 1953; And In the matter of Respondent No. 1’s Notification (No. FLR. 1104/CR-21/EXC-2) dated 26th September, 2005, thereby notifying the Bombay Foreign Liquor (Fourth Amendment) Rules, 2005 1. Imran Khan, about 28 years of ) age, an Actor by occupation, ) holding Overseas Citizen Card ) No. [Ω], residing at 24, Pali Hill, ) Bandra (West), Mumbai – 400 050 ) 2. Vedant Malik, about 22 years of ) age, a student by occupation, ) residing at 301, Aquamarine, ) 273-B, Carter Road, Bandra ) (West), Mumbai – 400 050 ) … Petitioners Versus 1. State of Maharashtra, through ) its Home, Finance, Prohibition ) and Excise and Social Justice ) Departments, Mantralaya, ) Mumbai – 400 032 ) 2. The Commissioner...
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...The Making of a Successful Duty-Free Retail in the newly privatised International Airports in India – ‘Major Challenges and Strategies’ Vinay Bhuwania M.M.S., University of Mumbai Dissertation presented in partial fulfilment of the requirements for the degree of MSc. In Retail Management, University of Stirling University of Stirling 2006-2007 Declaration VINAY BHUWANIA 1. I confirm I have submitted an electronic version of the dissertation and give my permission for the Department of Marketing to run this through a programme which will check for plagiarism. I also give my permission for the Department of Marketing to reserve the right to place my dissertation on the University website for future students to access and view. 2. Signature: ………………………………… Date: ………………………………………. i Acknowledgements Firstly I would like to thank to my parents for their unwavering trust and wholehearted support; thanks to them I had the opportunity to live one of the most wonderful and unforgettable year of my life. Many thanks, to all my seniors and colleagues in all the organisations that I have worked, for their encouragement. I am also deeply grateful to my wife Preeti (Tofu), for her heartfelt support all throughout. I take this opportunity to express my gratitude to my supervisor, Dr. Paul Freathy, for his support and guidance and enhancing my knowledge on the subject of airport-retailing. Also wish to thank Cathy Butts - Resource Centre Manager, University...
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...Contents External environment analysis 2 1. Define the type of organisation and the industry in which it operate 2 a. What type of organisation is 2 b. What industry, product segments/market in 2 c. What is the current life-cycle position of the industry 2 2. Assess the industry’s future growth (8 factors industry life cycle analysis) 3 d. What have been the key issues affecting historical industry growth? What was their impact? 3 e. What are the key issues that will affect future industry growth? What is their like impact and the overall assessment of the industry’s future growth 5 3. Assess the industry’s future profitability (Poter’s five forces and extended forces analysis and value chian analysis) 7 f. What are the key issues that will affect historical industry profitability? What was their impact 7 g. What are the key issues that will affect future industry profitability? What is their likely impact and the overall assessment of the industry’s future profitability? 9 Internal environment analysis 11 4. Answer the five questions in relation to the stated current/future strategy 11 5. What are the strategic capabilities of the company, and are they aligned with its stated strategy (Strategic Capability tests) 11 6. Who are the key stakeholders, what are their objectives, and are they aligned with the company’s strategy 12 7. Assess how the company has performed to date using the balanced scorecard approach 13 8. Who are the main competitors, what are their...
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...STUDY OF THE SCENARIO OF INDIAN AVIATION INDUSTRY IN A SPAN OF FIVE YEARS AND THE RISE AND FALL OF KINGFISHER AIRLINES IN THOSE YEARS. Indian Aviation Industry It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to $ 51 billion by 2011, from $16.3 billion in 2005-06. Origin of Indian civil aviation industry India occupies an eminent position in the civil aviation sector with a large fleet of aircrafts. Estimates show that the domestic and international passenger traffic in India is growing tremendously PEST ANALYSIS – AIRLINE INDUSTRY Political Factors India’s political environment – Tension with Pakistan, Government’s inability to control issues (riots etc) September 11 th - huge drop in air traffic due to safety and security concerns Trade relations with other countries have to be good Economic Factors Recession- airlines are considered as a luxury High operation costs due to low demand resulted in laying off employees Social Factors People from varied income groups have to be catered Destination, kinds of food served have to be chosen carefully Technological Factors Use of Internet- online ticket booking, updated flight information & handling of customer complaints restructuring the existing airports to world class appeal ...
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...equity from Mallya himself. Media reports often analyze how Mallya promotes the `Kingfisher' brand by associating it with lifestyle events like horse-racing, Formula 1 racing and prestigious launches. Reflecting on how he contributes enormously to it through his own flamboyant lifestyle, it is pertinent to probe into the prospects of Kingfisher's brand extension. The Kingfisher brand has come to epitomize a lifestyle that encompasses some of the finest things in life and is today synonymous with delivering a premium experience. - Vijay Mallya Brand Kingfisher I am the brand ambassador; I am the `King of Good Times',said Mallya, the brainchild of Kingfisher brand launched in the year 1980. Reports say that Mallya, while working in Kolkata (Indian city in the eastern state of West Bengal), felt that none of the existing beer brands Black Label, Kalyani, etc., were stimulating. Mallya, wanting to create a vibrant brand, went back to Bangalore (Mallya's hometown), rummaged through archives and stumbled upon an old label with a picture of Kingfisher on it. That manifested the birth of the...
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...LEGAL ELEMENT West Bengal's Nano Impasse: A Roadblock for Tata The slogans on signs in Singur -- the West Bengal site where Tata Motors plans to manufacture the Nano, its $2,500 small car -- say it all. Most are in Bengali, but the few in English capture the overriding sentiment. "Nano No No," reads one. "Atta not Tata," says another. Atta, which is flour made from whole wheat, refers to the core question of the dispute: Should fertile farmland be requisitioned for industrial purposes? Does food get priority or factories? According to faculty at Wharton and the Indian School of Business, the impasse over the plant in West Bengal threatens to increase the Nano's production costs and could delay its entry into the domestic market. Moreover, they say, it will likely impact investment in the region, as outside companies shy away from antiquated land laws and political disruption. As things stand today, work has been suspended at the Nano plant. Tata has closed shop because, as chairman Ratan Tata told journalists in Kolkata (formerly Calcutta): "I can't bring our managers and their families to West Bengal if they're going to be beaten, if there is going to be violence constantly, if their children are afraid to go to school." Tata has faced trouble ever since it got the go-ahead for the plant on May 18, 2006. Just a week later, there were angry demonstrations by farmers objecting to the "forcible" acquisition of land for the project. The Trinamool Congress, a political party...
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