Liquor industry summer training report

1. “A STUDY ON COMPARATIVE ANALYSIS OF LIQUOR
INDUSTRIES WITH SPECIAL REFERENCE TO INDIA
GLYCOLS LIMITED”
A SUMMER INTERNSHIP REPORT
Submitted by
Nitin Jaiswal
Registration No: 11608143
In partial fulfillment of Summer Internship for the award of the degree
MASTEROF BUSINESS ADMINISTRATION (MBA)
School of Business
LOVELY PROFESSIONAL UNIVERSITY
Phagwara, Punjab
July, 2017

2. CERTIFICATE BY THE FACULTY GUIDE REGARDING COMPLETION
OF WORK
This is to certify that the Internship Project entitled “A STUDY ON COMPARATIVE
ANALYSIS OF LIQUOR INDUSTRIES WITH SPECIAL REFERENCE TO INDIA
GLYCOLS LIMITED”” submitted towards the partial fulfillment of the Degree of Master of
Business Administration by Nitin Jaiswal is his original work under my guidance and the results
are based on the research done by him.
Mr. Jasdeep Singh Walia
Date:-
Signature: - Faculty Guide
LOVELY PROFESSIONAL UNIVERSITY

4. Acknowledgement
I express my respectable sense of in debtness and heartfelt gratitude to my industry guider.
Vishalika Srivastava (Assistant HR) of IGL, for learned and unending encouragement at every
step during the entire period of training.
My Respectable thanks to Mr. Sanjeev Khnana (Sr. Manager; HR and Administration) of IGL
and Mr. M.K Chaubey, (Asstt. Manager), IGL, for their kind interest and constant encouragement
during to training
Period and also giving me the opportunity to carry my internship in the organization.
I highly obliged (Deputy Production), IGL, for their guidance in the initial stage of my training.
My special thanks to Mr. P.N. Pandey G.M., IGL for allowing me to perform my training in the
organization.
My sincere thanks to all the retailers who gave me the vital information's.
Nitin Jaiswal
11608143
Mittal School of Business
Lovely Professional University

5. Table of Content
1 Introduction
2 Objective of the Study
3 Background
4 Major Players in Beer Brands
5 .Different Alcoholic Drinks
6 Process of Making Beer
7 Product Profile
8 Product of the Company
9 Competitors
10 Logistics
11 Liquor Marketing
12 SWOT Analysis
13 Findings
14 Conclusion
15 Suggestions and Recommendations
16 Bibliography

6. Introduction
Practical knowledge is an important suffix to theoretical knowledge. One cannot merely depend
upon the theoretical knowledge. Classroom lectures make the fundamental concept of management
clear. They also facilitate the learning of practical things. However, classroom lectures must be
correlated with the practical training situations. It is in the sense that practical training in a company
has a significant role to play in the subject of business management. Market research is indeed an
ancient art; it has been practiced in one form of the other since the of Adam & Eve. Its emergence is
of relatively recent origin for success of any business & with in this relatively short period it has
joined a carry great deal of importance:
Management Reading' towards a better profession as compared to other Professions. The demand
professional manager: increasing day by day. To achieve profession competence manager ought to
be fully occupied with theory and practical exposure of management. A comprehensive
understanding of the principle will increases their Decision making ability and sharpens there, tools
for this purpose. As an essential part of our course, I got the privilege to have training in India
Glycols Ltd. The work has carried over a span o! 2 months. My job profile includes making a
financial & market analysis of India glycols ltd so that to get aware of the financial & market
condition of the company.
Objective of the study
The objectives are:
• To determine the market position of beer produced by India glycols Ltd.
• To determine the perception of consumer towards beer of IGL
• To know the market share of India glycols Ltd., regarding to beer only.
• To determine the competitor of India glycols Ltd.
• To analyze the market expansion in future.

7. Background
First and only company in the world to produce Ethylene Oxide (EO) / Mono Ethylene Glycol
(MEG) from renewable agro route based on molasses, since 1989. Leading manufacturers of
Glycols, Ethoxylates, Performance Chemicals, Glycol Ethers & Acetates, Guar Gum and
Potable Alcohol. Completely integrated state - of - the - art manufacturing process with emphasis
on superior quality by deploying internationally proven technologies, innovative R&D and
customized approach.
• Catering to more than 1,000 customers in various end-use industries such as Textile,
Agrochemical, Oil & Gas, Personal Care, Pharmaceuticals, Brake Fluids, Detergent,
Emulsion Polymerization & paints etc.
• Offer customer specific products to meet their performance technical requirements.
• Customer base include large MNCs, Public Sector Undertakings and large as well as
medium & small Indian organization

8. Introduction of major players in beer brands
All Indian beers are either lager (5 % Alcohol — such as Australian lager) or strong lagers (8 %
alcohol-such as the popular MÅX super. Strong beer). International Breweries Pvt. Ltd. Have
recently announced" an. intention to work with India glycols to produce and launch an India's first'
brewery at, Solan. Kingfisher, Hayward. Foster's, Royal Challenge are Popular Indian beer brands.
The Indian beer industry has been witnessing steady growth of 7-9% per year over the last ten years.
The rate of. Growth has remained steady in recent years, with volumes passing 100m cases during
the 2006-2016 financial years. With the average age of the population on the decrease and income
levels on the increase, the popularity of beer in the country continues to rise.
The liquor industry in India
The alcohol industry is very important for the government. It generates an estimated Rs16,000 corer
per annum .in spite of the Tact that the per capital consumption of liquor in India is the lowest in the
world. The total liquor industry is worth Rs, 2,000 corers. IMFL accounts for only a third of the total
liquor consumption in India. Most IMFLs are cheap and are priced below Rs. 200 per bottle.
Alcohol sales proceeds account for 45% of the total revenue collection in the country. Whiskey
accounts for 60% of the liquor sales while rum; brandy any Vodka account for 17% 18% and 6%
respectively, MNC's share is
Only 10% and they have been successful Only in the premium and super premium ranges.
Post WTO the government may have opened India to foreign distilleries, but the duty has been
increased from 222% to 464-706%. This is due to the fact that there is a 100%.
Different Alcoholic drinks
1. Whisky
Whisky is amongst the most popular distilled liquor known all over the world. It is made of malt and
molasses spirit, which is obtained by distillation of mash or cereal grains like maize, rice barley
malt. Better the malt better the whisky. Large quantities of IMFL are manufactured in India and is
the maximum sold alcohol. The content is whisky is 42.8%.

9. 2. Rum
Rum is a distillate from the fermented juice of sugarcane of molasses. RUM is characterized with its
taste and aroma. Best rums are known to come from Jamaica, West Indies etc'. The alcohol content
of Rum is 42.8%.
3. Brandy
Brandy is generally obtained from fruits, thought the most commonly used 'fruit is grapes. The best
quality of brandy is cogiac, which is made in France.
4. Vodka
Vodka is a sprit resulting out of distillation, at Very high proof. This results in virtual NPN existence
of flavor in the resulting sprit.. Which is neutral, even after dilution required for palpability? The
traditional source of making vodka has been potatoes.
5. Beer
Beer is not a distillate like the drinks mentioned above but it is a beverage made by fermentation of
malt obtained from carbohydrate rich material barley. Hops are used to add taste while yeast is used
to ferment the beer.
Beer is to two types:
l. Pilsner or Lager
2. Draught
Lager Beer: - is the most common bottled Beer found in almost all the retail shops in the country
This Beer is served chilled and is of two types.
• Mild Beer alcohol content of 6.75%.
• Strong Beer alcohol content of 8,750/0.
Draught Beer: - is served chilled in mugs and is generally available in Pubs only. It can be stored
for 72 hours only and does not have any brand name. India glycols Makings support Draught Beer.

10. Process of making beer
Ingredients: The basic ingredients of beer are water; fermentable starch source, such as malted
barley; and yeast. It is common for a flavoring to: be added, the most popular being hops. A mixture
of starch sources may be used, with the secondary starch source, such as corn’s rice and sugar, often
being termed an adjunct, especially when used as a lower cost substitute for malted barley.
Water: Beer is composed mostly of water, and water used to make beer nearly always comes from a
local source. The mineral components of water are important to beer because minerals in the water
influence the character of beer made from it different regions have water with different mineral
components.
Starch source: The starch source in a beer provides the fermentable material in a beer and is a key
determinant to the character of the beer. The most common starch source sued in beer is malted
grain. Grain is malted by soaking it in water, allowing it to begin germination, and then drying the
partially germinated grain in a kiln.
Hops: The flower of the hop vine is used as a flavoring and preservative agent in nearly all beer
made today. The flowers themselves are often called "hops." .Hops were used in beer by jews in
Babylon around 400 BC, and by monastery breweries, such as Covey in Westphalia, Germany, from
AD 822, though the date normally given for widespread.
Product profile
This research 'focuses the study of alcoholic product of India glycols Meakins. Thus it is important
for us to known. what Alcolic drinks are. Alcoholic drinks are a mixture of alcohol or spirit water

11. and minor ingredients knows as cogeneries. The organic name of alcohol is ethyl alcohol, which is
derivative of hydrocarbon. Consumable alcohol has no flavor, only careful section of congeneries
which is added during fermentation process lead to a palatable product. Therefore alcohol drinks
offered world over are blended to provide.
The Indian liquor industry can be analyzed by segmenting into 3 parts
l. Country Spirit
2. Indian Made foreign liquor
3. Foreign Liquor
1- Country spirit: This is the unorganized sector occupying about 70% of the liquor market.
Country spirits are distilled spirits mixed or unmixed with spices or other ingredients in small
quantities to import taste and aroma. This spirit is most common among the lower class; it is
manufactured by local methods and has local names the most common being Dhara.
2. Indian made foreign liquor: This liquor is not the contemporary Indian liquor. In these category
products like whisky, rum, brandy and vodka are there. British's had brought in this liquor to India
later they set up distilleries and brewery to manufacturer it in India.
In post independence period there were 28 distilleries and 5-6 breweries. Today there are 233
distilleries and 75 breweries in India. This shows the tremendous growth and acceptance of IMFL
brands in India.
3. Foreign liquor: This is the imported liquor includes Beer and IMFL brands but the most common
is Scotch. Imported scotch is in great demand in India but the Indian. Govt. bans the import of
bottled scotch whisky, though a limited quantity can be brought in for duty free shops, five star's
hotels and in bulk for local bottling by joint ventures.
Product of the Company
1) Desi: Bunty Bubbly, Guru, Mr. Lemon, Wah Orange, Bullet No.1, Mauj Masti,
Mirch Masala

12. 2) Whisky: IGL Excellence select Whisky, IGL Supreme Whisky,IGLN0.l Whisky, IGLN0.l- Gold
Whisky, OB Deluxe Whisky, OB Whisky, Saturday’s Deluxe Whisk, Saturday's Aged I Whisky,
Silky Studs prestige Whisky • Silky Studs Deluxe Whisky
3) Rums:
• IGL No.l XXX Rum, Silky Studs XXX Deluxe Rum, Silky Studs XXX Rum, IGL No.l
XXX Gold Rum.

13. 4) Brandies:
• Triple Crown, Golden Eagle, Doctor's Reserve No. I
5) Gins:
• IGL No. I Dry Gin , Silky studs extra dry Gin , OB Orange Tango Gin , OB Deluxe Orange Tango
Gin, OB Lemon Duet Gin
6) Juice:
• India Glycols’ Gold Coin Apple Juice & Gold Reserve Mixed Fruit Juice
7) Mineral Water:
• Golden Eagle Mineral Water
8) Breakfast foods:
• India glycols’ New Life Corn Flakes & India glycols’ Wheat Porridge
Competitors
Today's world is the competition. In every filed there is competition and the success of any company
or product largely depends upon competition.
Competition provides a good quality of product to the customer. If a company has to survive in the
market, then it has to face throughout competition. In liquor industry to the competition is there. The
increasing awareness and exposure to beer among consumers and the removal of quantitative
restrictions gives big boost to the beer industry. It saw the emergence of new companies like future
wine and spirit brand (P) Ltd (FWSB), set up recently by two Non-Resident Indians (NRI's) from
USA. 'BEER ‘consumption in the country increased 7-9 % per year.

14. The major competitors of India Glycols Ltd. & their main Products are:
1. SAB miller
• Haywards 5000, Haywards 2000, Royal Challenge, Knock out, Castle lager, Foster,Hayward
s Black
2. UB group
• Kingfisher, Premium, San Mighen, London Lilsnex

15. 3. Cobra
• King cobra, Cobra bite, Cobra 5% premium, Cobra light,Cobra
1:- SAB Miller India
SABMiller India is a wholly owned subsidiary of SABMiller plc, the second largest beer company
in the world over a hundred Years of heritage.
SABMiller India sojourn began in 2000 and in just a few years, its has cornered nearly one third of
the India beer market with brands such as Haywards 5000. Haywards 2000, Haywards Black, Knock
Out, Royal Challenge. Castle Lager and Fosters.
Based on consumer insights, SABMiller India has taken innovative measures to fill up the
packaging, pricing, occasion and product gaps. Expertise on a global level has come in use to create
many firsts in India including the use of one-way bottles, flash pasteurization, establishing draught
standard, and now Haywards Black-a genuine stout beer.
2. United breweries Ltd.
The UB group commenced its brewing operations as early as the 19t century (1857) with fire small
breweries in south India. In 1951, a Scotsman named Thomas Fleishman combined. the five
breweries to form United Breweries . The company was taken over by Vijay Malaya in 1947. In
1952 the company shifted its registered office Madras to Bangalore. In 1958 the name of the
company was changed from United Breweries Ltd. To UB Ltd. In 1989 as a measure of
diversification the company stated manufacturer of bulk drug, the pharmaceuticals on a priority
basis.
In 1992, I I different breweries were and amalgamated with the parent company. In 1994 the
company launched its 'Kalyani Premier Strong' and started exporting 'Kalyani Export Special' to
U.K The Company presently has 21 breweries under its direct or indirect control. Recently the
company has started implementing restructuring excise unless which it has dedicated to split its
business into two-the core beer business and the group investment business. The company has
dedicated to focus on core business and to hive off non-core business.
3:- Cobra: - Back in 1990, Karan 'Cobra' Bilimoria, the now hugely successful UK-based beer
baron, came down to Bangalore with a dream. He had come to meet a brew master at Mysore
Breweries to develop a new international beer. The same year, Cobra beer was successfully shipped
from Bangalore to UK. And now 13 years later, the beer is now back in Bangalore, as a super brand

16. worth 56.9 million pounds. World over, the beer is considered less gaseous, apt for spicy Indian
food.
Priced at Rs 75 per bottle, Cobra beer will be placed in the premium category and will be made
available at all leading restaurants and 5-star hotels. It is already available in New Delhi, Mumbai,
Goa, Pune, Kolkata and Hyderabad selling 600 cases a month. The company would also launch
General Bilimoria wines which would be priced between Rs 500-800. "We are planning to sell 200
cases of wine a month. We are of the opinion that the Indian wine market which is already growing
at a rate of 40 per cent can be tapped better. And we want to become the number one player in the
national wine market, as other players only have a small presence,"
Power plant
IGL is setting up co-generation power plant at all the three units. The move is likely to reduce power
costs to less than Rs1/kwh vis-a-vis average power cost of ~Rs2.5-3/kwh
Logistics
Packing and Moving Wine, Alcohol or Liquor
1:- Check Inventory of What Needs to Get Packed and Moved
Check inventory and determine what you want to keep packing. Liquor and wine bottles are heavy
and if you're paying per pound to move them, consider what is worth moving and what isn't. If
you're moving a long distance and don't want to pay to move all your bottles.
2:- Get the Right Packing Supplies
If you don't have too much to move or if your wine or liquor is valuable and you want to make sure
nothing breaks during the move, I suggest purchasing a specialty wine shipping box. Most couriers

17. will sell them, in particular, if you live in a wine region like I do. Check with your local UPS or
FedEx.
Wine boxes are available in different sizes that will hold either 6 bottles or 12. Included in the box
are Styrofoam dividers that keep the bottles in place while protecting them from bumping against
one another. While expensive, these boxes will ensure your bottles arrive without breaking.
If you're not worried about shipping your wine or bottles of alcohol, then save some money by
buying cell boxes - moving boxes that have cardboard dividers to separate the bottles. You can
either purchase cell boxes or visit your local liquor store to pick up free boxes. Unlike used boxes
that you might get from a grocery store, used liquor boxes are usually clean and sturdy.
You'll also need packing tape, packing paper (if you're not using a wine shipping box) and a marker
for labeling.
Liquor Bottles of the Size 180ml, 375ml, and 750ml
Large bottles: 750ml fifth, this is the "standard" size. Virtually any liquor is available in a fifth this
is also the typical size used by bars.
1liter not uncommon but only some liquor is offered in this size.
1.5liter or 1.75liter magnum, also known as "handle" as these large bottles usually have handles or
grips. This is the "bargain" size and most liquor is available in this size. Magnums are usually
stocked by better liquor stores and "discount" clubs.

18. Small bottles: 187ml & 375ml "flask". These are usually in a flask-shaped bottle, and aren’t as
common as fifths, although they’re by no means rare. A supermarket will usually have these in the
most popular brands, but many types of liquor are available at a specialist liquor shop in this size.
They're also common at small convenience stores.
- 50ml "mini" or "single". Usually shaped to look like a tiny version of the brand's 750ml bottle,
these are common in mini-bars, planes, & trains. A limited selection is available at most liquor
stores and a surprisingly wide variety can be found at a specialty shop. They’re a great way to try
higher-priced liquors too!
Why Choose this Size: It is mainly because how a peg is defined. Even when people consume
alcohol in their homes they tend to prepare pegs and serve them.
Large peg = 60 ml.
Small peg = 30 ml.
so the bottles are made is multiples of small or large pegs.
180ml = 3 large pegs
750ml = 12 large pegs + 1 small peg
375ml ~ 6 large pegs (15ml provided extra probably to keep the amount half the size of the 750 ml
bottle)
So it's a combination of keeping a bottle's volume in line with a certain number of pegs and also to
divide a Liter in 4 sub categories so that people will have a number of options to choose from.
3:-Make sure the bottom of the moving box is secure.
If the bottom of the box feels flimsy, you can try lining it with a piece of thick, stiff cardboard.
Secure your box well. Reinforce it with packing tape. Check your box to make sure it will hold the
weight. Don't use a box that is too worn or damaged in any way.

19. 4:-Wrap Each Bottle
If you haven't purchased a wine shipping box, then you'll need to wrap each bottle to keep it safe
and secure. Place a stack of packing paper on a flat working surface.
If you're packing opened bottles, ensure they are properly sealed by tightening the caps. Place a
bottle on its side perpendicular to the corner of the top sheet of paper. Leave enough room at the
corner to be able to start wrapping the bottle. Select two to three sheets of paper and wrap it around
the bottle, rolling the bottle as you push forward. Wrap the ends of the paper into the roll as you go.
For wine bottles, mold the bottle's neck as you roll to ensure its tightly wrapped.
Secure the wrapping with tape and make sure there are no loose ends.
5:-Box up the Wine and Liquor Bottles
Place each wrapped bottle into the cell-divided box, making sure the bottom of each bottle is well
protected.
Once the box is full, gently shake it to see if you hear any bottles clanging together. If the bottles
are moving around too much, add extra packing paper or use other materials to fill the gaps.
6:- Tape the Box
Once you're happy that the bottles are safe and secure, tape the box closed using packing tape. Also
make sure you label the box with its contents and mark it as fragile, too.

20. 7:-Load the Box
If you're moving yourself, make sure you place liquor boxes on the moving truck bed's floor rather
than stacking them on top of furniture or other boxes. Not only are they heavy and can damage other
stuff if they fall, but also break even though you packed each box well.
Just be smart about how you load the truck, and your wine and alcohol will arrive safely.
Store Delivery Process & Licensed
• Drivers are required to deliver the liquor order into the Licensed Premises, out of the way of
customer flow and NOT in front of the cash register.
• Drivers will drop the order at the Class E licensee's designated dock area or in a designated
location adjoining the dock area.
• In some cases, driver may ask manager to watch product left outside when unloading for
safety and security reasons.
• Drivers will NOT transport freight through the store or to display areas.
• Licensees must provide adequate space for the delivery and counting of the order. Drivers
will NOT move or rearrange goods, fixtures, or materials preventing the normal described
liquor delivery process.
• As currently practiced, drivers are not to wait more than 15 minutes to make deliveries after
contacting store employees. At the conclusion of 10 minutes, the driver will call the Fleet
Manager/Supervisor to inform them of the problem and then the decision will be made to
continue on with the rest of the route. Arrangements may have to be made to pick up the
order at the state liquor warehouse.

21. Product count
• Driver’s licenses will participate in a bottle and case count inside the store. At the
conclusion of the count the licensees will sign and agree of the count.
• In the event the count indicates a product overage or shortage, the driver will document the
over or short. The driver then will get the store representative to sign the invoice
acknowledging the short or over and the driver will continue on with the rest of the route.
The licensee will determine the products that are in error and go to company under returns
and fill out the appropriate information of the error and submit with in 72hrs.
• If the count is correct but the licensee later discovers a miss-pick (wrong product), the
licensee will determine the products that are in error and go to company under returns and
fill out the appropriate information of the error and submit it with in 72hrs.
• Corrective action will be handled by the staff. The guarantees corrective action provided the
driver and licensees agree on the case and bottle count.

22. Return policy
• On rare occasions, a case ships from the factory with a missing or broken bottle or a bottle is
broken between the warehouse and the licensed premises. If this happens, the product must
be returned with its original packaging along with the case box; this includes boxes used to
transport split cases.
• Company cannot issue credit for products that have been marked for sale or that have been
purchased, left the property and then returned to the store for refund.
• No special order products are to be returned without approval from Comany management.
• Company cannot allow credit on products broken or damaged on the licensed premises if
damaged by store manager, store customer, or store employee.
• Unsalable products, along with merchandise transfers that are to be credited, must be ready
for return in the receiving area prior to the driver's arrival.
• Please visit Company to review the updated Returns Policy
• Company will give credit only on reasons stated above.
Record every delivery transaction. Even if a specific form is not required, most states do require
you to keep detailed records of every delivery transaction, including the name and address and
amount details.
• The records you keep for deliveries may require additional information that isn't necessary
for regular in-store transactions.
• Typically you must record the name and identification information for the customer, as well
as the address to which the alcoholic beverages were delivered.
• You also may need to include both the date and time of purchase and the date and time of
delivery.
• Details of the specific transaction, including the number of bottles sold and the volume of
those bottles is necessary so state inspectors can ensure you're complying with state
regulations that limit the quantity of alcoholic beverages sold or delivered to individual
consumers.
• Records must be kept for the period of time specified by your state's law, typically at least
two or three years from the transaction date.
• Keep in mind that state inspectors typically have the right to inspect your premises and
records at any time, and may come unannounced.

23. Liquor Marketing
It is very difficult to target young adult consumers without exposing cohorts of adolescents under
the legal age to the same marketing. The exposure of children and young people to appealing
marketing is of particular concern, as is the targeting of new markets in developing and low- and
middle-income countries with a current low prevalence of alcohol consumption or high abstinence
rates. Both the content of alcohol marketing and the amount of exposure of young people to that
marketing are crucial issues. A precautionary approach to protecting young people against these
marketing techniques should be considered.
For this area, policy options and interventions include:
(a) Setting up regulatory or co-regulatory frameworks, preferably with a legislative basis, and
supported when appropriate by self-regulatory measures, for alcohol marketing by:
(i) Regulating the content and the volume of marketing;
(ii) Regulating direct or indirect marketing in certain or all media;
(iii) Regulating sponsorship activities that promote alcoholic beverages;
(iv) Restricting or banning promotions in connection with activities targeting young people;
(v) Regulating new forms of alcohol marketing techniques, for instance social media;
(b) Development by public agencies or independent bodies of effective systems of surveillance of
marketing of alcohol products;
(c) Setting up effective administrative and deterrence systems for infringements on marketing
restrictions.

24. Marketing normally caters two functions
• The satisfaction of customer needs and wants.
• Providing an outlet for production.
Good produced have no value in themselves, it is only made when they are available to consumer
who want them and are willing to buy them, and they assume any value.
Liquor marketing face several restrictions
• No outdoor publicity.
• Limited outlets.
• Price restrictions.
• No direct marketing.
The tight of above constraints liquor sales can be performed through
Following catteries.
1. Advertising brand names through other related products like soda lime, juice etc.
2. Banner and posters at outlets en be made more eye catching.
3. Sales can be increased y giving incentives o retailers.
4. Frequent visit to personal to the retail outlets could also help increase products market position.
SWOT Analysis
Strengths
IGL is uniquely positioned as a petrochemical manufacturer through the organic route, and is
probably the largest player in the world in its segment. Though the gross block of the company is
Rs9.7bn, its replacement cost is estimated to be ~Rs32bn. This along with technological know, how
would act as a strong barrier for entry, thereby offering competitive safety for the company.
The Kashipur unit is fully integrated one, thereby ensuring operational smoothness. The company is
altering its mix in favor of EO derivatives. This offers higher realizations with stability in outlook
and prices. Improving product range (180 at present) would also enhance realizations and
consequently better margins.
IGL has the ability to switch its feedstock, between molasses, ethanol and sugarcane. Thus, it can
procure molasses or ethanol at the start of a season (Oct-Nov) and rationalize its raw material costs.
Its storage facility also enables it to manage inventories on a higher scale.

25. Weakness
IGL’s margins could face pressure if MEG prices continue to fall vis-a-vis hikes in prices of
molasses and ethanol. While IGL is integrating backwards to reduce the price volatility in its raw
materials, the same cannot be eliminated and hence would continue to dog the operations of the
company.
Newer capacity expansion being undertaken in the M. East (Saudi Arabia & Iran ) has the potential
to lower the landed cost of improved MEG in India and to impact realizations.
Currently, POY/PSF industry accounts for ~70% of MEG consumption in India and ~35%of IGL’s
revenues. This imparts high sensitivity to an industry and slowdown in that sector has the potential
to impact IGL’s earnings.
Opportunities
IGL has flexibility in using ethanol or molasses as its feedstock for MEG/EO manufacturing, which
can help optimize its raw materials cost.
By setting up co-generation plants, IGL will be able to lower its power cost (12% of net sales in
FY17) to 8% of net sales in FY19.
Expansions in the polyester industry (Indio Rama, JBF, Reliance and Garden mills) will ensure off
take of IGL’s incremental capacity.
IGL is diversifying its revenue stream through venturing into Nutraceuticals, CO2 and Real Estate,
which are expected to account for ~10% of revenues by FY19.
Threats
MEG capacity expansion in M. EAST may dampen IGL’s off take. Additional capacities may
impact global prices which will impose margin pressure. Also, any changes in custom duties on
MEG (7.5%) and swing in Rs/USD rates have the potential to dampen realizations and margins.
Currently the Reliance Group, which is the largest domestic manufacturer of MEG, consumes
majority of its production in-house. Any sharp scale up in its merchant sales can upset the business
prospects of IGL. After Shakumbbari expansion, there would be another factor influencing the
costing structure of IGL namely sugarcane. We have drawn our estimates on cane prices of Rs
125/qntl. Thus, any IGL is undertaking capex of Rs4.9bn over the next 2 years.

26. Findings
Are the consumers aware of the company's of whose brand they drink?
In Gorakhpur 98% of consumer were aware of the company*s name but it had 72% of the Beer
drinkers, A considerable of people knew the company's name thus it means that the awareness of
company and company's image affects the consumers attitude, From the graph it can seen that IGL
awareness among the consumer drinking its brand is 15% hence the company will have to do
something to improve it.
Options for other brands when preferred brand is not available
From the survey it was obvious that the consumer once in a mood to drink went for some other
brand if his preferred brand was not available. As from the response for question two in the
questionnaire in U.P, Kingfisher lager, Kingfisher Strong, Makings 10000 is the first preference of
most of the customers and Golden Eagle, Royal Challenge, are secondary choice that is Beer are
demanded when the consumer does not find first preference brand. In Gorakhpur Golden Eagle and
Meakins 1000 Beer are the maximum selling brands hence it is important for the company to
maintain its regular supply, The company should ensure that the supply of its brands which are
maximum demanded in Gorakhpur is regular so that consumer gets what the demanded and doesn't
switch over to other brands.
Wholesalers and retailers view about the company and its brand
In the survey when different retail shop and wholesaler were covered the vies the they gave about
IGL were as follows:
• The Company has good image in the market and its brands are in demand.
• IGL No. I XXX Whisky is their best product and hence the most demanded, but not easily
available everywhere.
• Some company should also improve and bring new packaging techniques Attractive packing
with more of shelf display can definitely influence the Buying behavior of the consumers.
• Giving free gifts to the people who can boost up the sales to great extent should encourage
the counter salesman.

27. Conclusion:-
During our research we found out that the brands of IGL in the Whisky Segment specially Meakins
10,000 and Golden eagle is performing well. The demand of Golden eagle in the market is good but
not easily available everywhere Company has got good image among the general public. Other
brands like kingfisher, Haywards 5000 have also got good presence in Gorakhpur.
HAYWARDS 5000 is the undisputed leader in the strong beer segment. Other brands like
Kingfisher, Cobra, Royal Challenge and Thunderbolt is also performing well in their segment.
Some international brands like foster have got very good presence in the beer segments in
Gorakhpur market.
As far as IGL is concerned the major position of its turnover through Bunty Bubly and Mauj Mastis
these are the largest selling brands in the industry after Haywards 5000 but the company badly needs
to promote other brands because neither of them has hot good presence at the national level. The
company needs to adopt aggressive marketing strategy and brand promotional schemes in order to
.compete with the increasing influence of UB group and SABMiller.
Suggestions and Recommendations
IGL's manufacturing prowess affords it strong flexibility in swinging to the cheapest feedstock i.e.
Sugarcane, ethanol or 'molasses. This, coupled with the altering product mix ‘towards EO
derivatives imparts huge operating leverage for the company and can propel its' profitability sharply
(as illustrated in .the sensitivity table below). Considering the sugar cycle (and thereby sugarcane
prices), softening international ethanol prices (imports at a landed cost of Rs 1 8,5/liter being a
viable proposition) and the huge storage facility of molasses and ethanol that afford it strong buffer
capacity, the earnings stream of the company is expected to turn more predictable and less cyclical.
Thus, we believe that valuation metrics would improve from low, single digit P/E multiples and
align with other commodity players.
From the survey of retailer and wholesaler it is clear that not only brand positioning, brand image
and consumer demands are the not only controlling factors of the sale of. product of the company
but the wholesaler and the retailer also play a major role. IGL should thus focus on the following
points.

28. Availability
It is necessary for the company to maintain a regular supply of its products and brands, They should
fulfill the demand of the wholesaler so that product can be available in the retail market. The
consumer should get the brand he demands otherwise he shifts to other brands and frequent shifting
affect the Ales of company and the consumer could even change the preference of his brand.
Profitability
AS we have seen form the wholesalers and retailers view that they sell those products which earn
them greater profit margins. Therefore the company should give the wholesaler greater profit.
Margins so that has more profit and in turn retailer also gets a greater profit margin.
Extra benefits
Since only 4-5 firms operate in the market it essential for the company to give extra benefits and gift
to the wholesaler and salesman at retail outlets to maintain good relation with them.
The company can offer them free gift like playing cards, Key-Rings, Wine, glasses and T-Shirts. In
return the salesman at the retail outlet creates the demand of the company's brand. The company
should send its marketing team into the market regularly so that the performance of the company’s
different brands could be studies and a follow through action plan be developed. This will also help
the company to maintain good relation with Beer & Hotels and the wholesalers and retailers:
Limitations
During the process of a research a person comes across certain restrictions certain limitations. Some
of these limitations are overcome while come have to be overlooked for the smooth conducting of
the research. Some of these restrictions are:
• Liquor is such a product that the wholesaler, retailers and consumer fear to come out with
information.
• Due to the wide area of the markets, it was impossible to cover each and every retail shop,
hence only few shops were covered.
• The such had to be completed in 8-10 weeks, which is not enough time to cover the market.
So time was the major constraints in conducting the study.

29. Bibliography
The readings which rendered al! Possible help and guidance in finalizing the marketing are:-
Marketing Concept Philip Kotler
Data from Press Release of IGL
Websites www.google.co.in
India glycols.com
Scribd.com
https://en.wikipedia.org
News Papers the Economic Times &
Times’ of India
Magazine Business Week