...Liquor industry-In 2013… * India is the 3rd largest liquor market in the world. * One of the fastest growing markets in the world, on the back of demographics & economy. * The overall retail market size of liquor is ~$35 billion per annum. * Strong MNC presence with Diageo, Beam Global, Pernod Ricard, Heineken, SAB Miller, Carlsberg and more. * There are 3 broad categories – IMFL (Indian Manufactured Foreign Liquor which includes whiskey, rum, brandy, vodka & gin), Beer and Country Liquor (cheaper, spiced liquor). * Each of these segments has a volume of between 230-260 million cases per annum. Hence, the market is divided almost equally by volume. * Overall growth of the market is ~8% per annum, mainly driven by IMFL and beer, Country liquor is a slow growth market. * Beer has been consistently growing at over 15% per annum over the last few years. * However, the IMFL market is much larger in terms of value – by the sheer difference in price per bottle. Hence, the IMFL market would be over 65% by value and beer would be ~15% by value. * FDI – 100% FDI is permitted in the alcoholic beverages sector. * Taxation is high, Price is controlled – Excise duties, sales tax, VAT and various intermediary margins contribute bulk of the retail price. * In most states, the government tightly controls the retail price of liquor; a tender process is used to determine prices and volumes that will be bought by the distributors. * It...
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...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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...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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... (Haider, 2010) As a result, social environment will give marketing a new guidance. And demographic and cultural will be included as two main factors in social environment. Demographic is to gather people in groups that share with same common criteria. Because of the variables of demographic, demographic is divided in many parts. Such as age, gender, income, race, religion. (Naik, 2013) Cultural is the values and ideologies of a particular group of individuals. And it consists of languages, regions, habits, arts and so on. (Zimmermann, 2015) Besides, both demographic and cultural have direct link with marketing. Demographic will direct determine the potential capacity of the market. What’s more, the structure of population age and the level of education will have profound influence on market structure. Due to different cultural will cause different consumption concept, so cultural will affect customer’s consumption idea directly. Further to say, different consumption ideas will require companies to design different marketing strategies. Without a good knowledge of different cultural in different districts, it is very easy to make mistakes in marketing strategies. For example, a brand name for the product’s quality and reliability of a language may cause severe negative...
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...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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...ABSTRACT The paper looks at the interactive relation of the prohibition act with market and stakeholders. The findings are based on interaction with different stakeholders and uses a qualitative research approach. LIQUOR PROHIBITION ACT: THE CASE OF GUJARAT Focus on Public Policy & Marketing Rahul|Edwick|Vishnu IRMA PRM 35 About the Authors Edwick P. Bilung P35027 PRM 35 Institute or Rural Management, Anand. Contact: p35027@irma.ac.in Rahul Singh P35170 PRM 35 Institute or Rural Management, Anand. Contact: p35170@irma.ac.in Vishnu Vijayan P35106 PRM 35 Institute or Rural Management, Anand. Contact: p35106@irma.ac.in Table of Contents Introduction ...................................................................................................................... 4 The Prohibition Act .................................................................................................................... 5 Background ................................................................................................................................ 6 Objective & Scope ............................................................................................................ 7 Objective of the study ............................................................................................................... 7 Scope of the study ...............................................................
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...one stop investor that provided patient capital ( vs. venture capitalist) * Invest $11.2 mn with controlling interest- will buy 23% for majority control- purchase existing shareholders for $7 mn * Persuasion required for existing investors to sell: German friends convinced easily, friends and families in US difficult to appease ( pot of gold attitude) * Robert Carrau- godfather of Dean & chairman- sold his stake along with 3 more- control completed * Time spent on future plans & Structure – open new, brewing biz, mgt team, structure of BoD * BoD wont set up formal quarterly meetings, conference calls to discuss issues as they arise & one annual meeting Growth * Plans in detail (goals) & organizing: * Hire a new mgt. team: Nelson Exec. To help * Expansion plans: 2 more in 1996, 3 in 1997, 6 in 1998 so on- from 5 to 22 * Construction of new brewing facility: to be completed by 1996 end * New organizational structure and well defined roles * Staffing : * Qualities of Managers searched for: * Experience working in a rapidly growing restaurant/food service industry * Needed to fit well in the org. culture * Method of selection : * Recruitment * Initial Interviews and reference checks by Nelson to prune the pool and got 5, narrowed further * Multiple meetings with final...
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...“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 maker in the world) have been the two most significant in-organic investments so far. Grading Positives The company’s key strengths include a) its strong market position in the Indian alcoholic beverages industry supported by leadership position across segments, wide product portfolio and well established brands. With the industry being highly regulated and governed by restrictions across...
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...“Consultant Report On United Breweries Limited ” Student Name: Gangadharan Renganathan Student Id Course Subject : 1229047 : Master of Business Administration : Strategic Management Submitted To: William Naylor Table of Contents Introduction: ........................................................................................................................ 3 Objectives: ............................................................................................................................. 3 Recommendations: ............................................................................................................ 4 Prior Recommendation for future development: ................................................... 7 Conclusion: ............................................................................................................................ 7 Reference: ............................................................................................................................. 7 Appendix: .............................................................................................................................. 9 Introduction: United Breweries was founded on early 19th century. This group is operating more than 100 years. A Scotsman, Thomas Leishman in 1857, founded UB GROUP. He started this business as a big producer of beer from a south Indian based British Breweries. Thomas Leishman was founded the United Breweries Limited (UBL) on15th March...
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...History Beer began to be exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an 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...
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...Markets & Regulations Wine Industry in Maharashtra: An Analysis Sudipto Mitra Two of the countryʹs biggest grape-producing districts, Nasik and Sangli, are in Maharashtra; 20,000 hectares of vineyards here grow more than one lac tons of grapes a year. As much as 99 per cent of the grapes is used for making honey, crushes and jams, or consumed fresh or dry. The rest is used for making wine. Thus the opportunity in this sector is immense and given proper help and guidance this sector can be of great help for employment as well as for earnings. General rules for bar owners as framed and maintained by the local municipal corporation (as per schedule “e” or “fl3”for grant of licenses) are: • Silver plating of the utensils to be used in the bars compulsory. • Fire license to be procured before starting off with the operations. • Glass tumblers a must for all bars for serving wines etc. • Pest control to be done regularly. • The minimum size to be operational is 450 sq. feet. • Tiles compulsory for the floor. • Clean uniforms for the waiters in the bars. • Separate place for washing utensils. • Kitchen to be a minimum distance from the actual serving place. • Twice painting of the walls of the bars every year. • Restaurant/ bar to be cleaned twice per day. Before actually applying for the license, one is required to operate the bar /restaurant for six months. After applying for the license one is required to pay the fees which may vary between one and half lacs to two lacs...
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...China. Based its general conditions, this paper mainly focus on its capital structure with very leverage ratio and very high liquidity ratio of debt and asset, as well as its payout policy which returns relatively small amount of cash back to the investors. Simultaneously we also take the interest conflicts and the competitive scenario with other rivals into consideration. It can be concluded that the financial response of its leverage level and dividend policy is not significant. While the major suggestions given from this paper contend that it should raise more debt when faced with worthwhile investing projects and should increase the dividend ratio for the feedback of its investors, which can also reduce its excess cash at hand. Key words: Kweichow Moutai Co., Ltd, Capital Structure, Payout Policy 1. Introduction 1.1 Company introduction Kweichow Moutai Co., Ltd. is mainly engaged in the manufacture and distribution of Maotai liquor series products. The Company’s main products portfolio consists of Maotai liquors and other liquor series. It distributes its products in domestic and overseas markets. The Company is also involved in the manufacture and distribution of drinks and food packaging materials, the development of anti-counterfeit technology, as well as the research and development of information technology related products. 1.2 Industry introduction Chinese white spirit is the unique liquor originated from China. As a special and important way of emotional communication...
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...Background Project Proposal Project Title: The Production of Cassava Peels Vodka in Bolisong Women Wine Makers, Inc Proponent: Bolisong Women Wine Makers Project Cost: Objectives: The main objective is to introduce a new product line to Bolisong Women Wine Makers, Inc. It aims to: 1. Provide additional income for the cooperative 2. Provide additional livelihood for the members of the cooperative 1. Background A. Company Profile Bolisong Women Wine Makers, Inc is a cooperative consists of 18 women. These women are neighbors who were upset about the duhat and cashews littered on the community. They decided to do something about it and it turned out to be wine-making. They started producing wine since 2006. The women themselves were only armed with the basic knowledge and tools for wine-making. The group went through trials and errors, a necessary step in perfecting their homegrown wine products. With the help of inter-governmental agencies in Region 10, like the DTI, DSWD, Department of Agrarian Reform, and with the help of Xavier University’s Food Tech Center, the women were empowered and stimulated to take their business seriously. The cooperative produces duhat, cashew, jackfruit, pineapple, banana, ube, and watermelon wines carrying the brand name Salvadore Fruit Wines. It is located in Brgy. Bolisong, El Salvador City. The company’s products are already registered with the Department of Health and the Bureau of Food and Drugs. Over...
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...likelihood of profitability verses risk of failure. Shadowed by the fact that the restaurant was new and would serve as a centerpiece for public scrutiny and too, the investment was highly supported by a foreign investor group, there was still the prospect of reward due in part by the infamous and experienced support structure in that of UGH. The establishment will obtain assistance from cost control to sales experience. The goals, although not mutual, would be also be attained by the regard given to Jacquard's ability and subsequent thorough input into the development and implementation of business strategies. B. A key aspect to take note of is that the budget provided by the Hotel’s accounting department did not provide for the cost of wine waiters, nor the cost of wine and liquor served in the restaurant. This is to Jacquard’s benefit. Because the wine cellar and liquor inventories are managed by the hotel, the restaurant does not have to endure product-level costs associated with these items. For instance, costs will not have to be incurred to follow state liquor guidelines, various inventory costs, insurance, maintenance and storage. In essence, the wine and liquor is viewed to be outsourced without the cost. C. Facility level costs were listed in the monthly expense budget that included charges for laundry, cleaning, utilities, maintenance, depreciation and general administration. As denoted in the case profile, the restaurant did not have to pay directly for a number...
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...China's consumption-driven development model basically established http://news.hexun.com/2015-04-17/175037256.html The 2015-04-17 00:17:46 source: China business times author: ren-ping li "Consumption rate exceeded 50% for the first time in the past decade, ranking first in the Troika." The 2015 Consumption Market Development Report which is issued by Ministry of Commerce pointed out that the consumption-driven development model will be basically established this year, and the growth rate, structure, hotspots, drive of consumption will change accordingly. Unlike the spokesman of Statistics Bureau Sheng Yun’ opinion that the contribution of consumption to GDP ratio in the first quarter may reach 60%, according to Zhao Ping’s interpretation, who is deputy director of Consumption Economic Research Department of Ministry of Commerce, the full-year contribution ratio of consumption was always used to clarify the status of consumption, which in fact only reflected the proportion of consumption in economic growth, while consumption proportion in the stocking economy has always been low and hovering around 40% for a long time. However, consumption rate, which means the consumption share of GDP, is a more comprehensive measure of the proportion of consumption. Therefore, “consumption rate exceeded 50% for the first time in the past decade with the specific measurement data of 50.5 percent, which means the consumption-driven development model is basically established...
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