Ost United Spirits

INTRODUCTION INDUSTRY PROFILE: Alcohol Industry In India Indian Liquor Industry with estimated market value of INR 340 billion is growing at 12-15% over the last two years. The industry is estimated to have sold 115 million cases of IMFL last year. The sector is expected to maintain its CAGR of ~15% while the premium segment Wine and Vodka is expected to grow at a higher rate. With consolidation and foreign acquisitions gaining steam the sector is about to witness next phase with realization rising in line with that of their foreign counterparts. There are 325 distilleries in India, with an installed capacity of about 3.58 billion liters of liquor. However, production rate is about 40% of total licensed capacity as total requirement of liquor stands at 1.3 billion liters. About the Industry India’s country liquor industry is known for chaotic business, and estimated at Rs 220 billion, with annual volume sales of over 200 million cases. Of course, the India-made foreign liquor (IMFL) sales are pegged at around 150 million cases, and growing at 8 to 10 per cent annually. IMFL and country made liquor account for the bulk of alcoholic consumption. The Indian beer Industry has been witnessing a steady growth rate of 7-9 per cent per year for the last ten years. Per capita beer consumption is still low at 0.7 litre per year. Though the current growth is pitched at 13 per cent, the total beer market is expected to more than double to 23.3 million hectoliters by 2012. Apart from Kingfisher and Foster’s Beer, the other brands in the Indian market are Carling Black Label, Carlsberg, Dansberg, Golden Eagle, Haywards 5000,Premium Lager, Kingfisher Strong, Hi-Five etc. to name a few. India has emerged as one of the fastest growing markets for wine consumption on the global map. The Indian wines are growing annually at the rate of 25 per cent. With a population base of over 1.1 Billion, the

consumption of wine is extremely low, indicating vast potential