The document provides information on the Indian liquor industry. It discusses that the industry is highly regulated and taxed. It notes that the industry is divided into IMFL and country liquor and has a market value of INR 350 billion growing at 12-15% annually. It also profiles several major players in the industry such as Diageo, Pernod Ricard, Beam Suntory, United Spirits Limited and United Breweries. It discusses regulations around alcohol consumption in different countries and states in India. In closing, it outlines some of the key risks and challenges faced by the industry related to taxes, regulations and social factors.

2. Indian Liquor Industry is high riskindustry
on account of high taxesand innumerable regulations
governing it.
The Liquor industry has seen players with strong brands,
diversifiedportfolios, and largeoperationsachieve market
leadership positions.
Indian Liquor Industry is divided into 2 broad categories
IndianMadeForeignLiquor(IMFL)
CountryMadeLiquor
 Has a marketvalueof INR 350 Billion, growing at
12-15% per annum over last 2 yrs.

3.  French company,
headquartered at Paris,
France, founded in 1975
after arch rivals Pernod &
Ricard joined hands.
 Major subsidiaries in
Australia, Greece, India,
Canada.
 Major brands : 100
Pipers, Absolut Vodka,
Blenders Pride, Chivas
Regal, Havana Club,
Imperial Blue, Royal Stag.
 Madeheadlinesfollowing
its tusslewith Vijaya
Mallya’sUnitedBreweries.

4. Current Status:
India set to become the third largest
market for the company after USA
and China, overtaking France.
Not allowedto operate in Andhra
Pradesh& Karnataka, the largest
consumer market for distilled beverages in
India.
Indian Liquor Industry is molasses
basedwhich adds on to the regulatory and
political risks.
Limited Price Flexibility.

5.  Britishmultinational whose
products are sold in over 180
countries.
 Formed in 1997from the merger
of Guinness and Grand
Metropolitan.
 Headquartered in London
 8th-largest company on the London
Stock Exchange.
 Major brands
include Smirnoff, JohnnieWalker,
Baileysand Guinness.
 Recently in news over restructuring
of its SouthAfricanandNamibian
operations.

6. Situation in Kenya
 Increase in illicitliquorsalesleading to ill health
effects on citizens.
 Introductionof low costbeer, Senator Keg to cater
to the Kenyan market by Diageo to game the
situation.
Proposedthe government to reducetaxesto make
liquor affordable by the masses, thus eliminating
trade of illicit liquor
 In 2012, Kenyan government waivedtaxes off
altogether after seeing the health benefits.
Current Status
 In 2014, Kenyan govt put an excisetax of 50% to increase its revenue from liquor industry.
 7,500distributors out of the original 12,000 that supplied Senator Keg have closedbusiness as an
effect of a tax.

7. ● Americanmanufacturer of spirits
headquartered in Deerfield, Illinois.
● Subsidiary of SuntoryHoldingsof
Osaka, Japan.
● Established as Beam Inc. on October3,
● Founder : Remainder company created
from Fortune Brands by Matthew
Stanton, top political lobbyist
● Marketpresencein Europe, China,
Japan, Southeast Asia, the
Oceania, and the Americas.
● Majorbrands:Jim Beam, Maker’s
Mark,Teacher’s.
● Investmentsin bottlingand
distributioninfrastructure
enhance company’s future
prospects in India.

8. • In US, Federal Uniform Drinking
Age Act of 1984 sets the minimum
legal drinking age to
• Alcohol duties applied in UK
• Canada has highesttaxrateon
alcohol in the world.

9. • Foundedby Scottish gentleman named
ThomasLeishmanin 1857.
•The Group is professionally managed and
is headedby Dr VijayMallya
•Headquartered in UB City,Bangalore
• The UB Group, is the marketleaderin
both Spirits & Beer in the country with 79
distilleriesand bottlingunitsacross the
world .
•Turnoverof Rs 3700Crores
•Marketshareof 48%by volume.
• The core Beverage Alcohol business
account for 80%of the group turnover
• Other interests include Fertilizer,
Engineering , Life Science,
Infrastructure development, Aviation &
Media
•Flagship brand: KingfisherBeer

10. M & A
•McDowell & Company Limited
(Listed)
•Herbertsons Limited (Listed)
•Triumph Distillers & Vintners
Private Limited
•United Distillers India Limited
•Baramati Grape Industries Limited
•Phipson Distillery Limited
•United Spirits Limited
•McDowell International Brands
Limited
•Shaw Wallace Distilleries Limited
with its subsidiaries Whyte and
Mackay
Products
Kingfisher Strong
Kingfisher Premium
Kingfisher Draught
Kingfisher Ultra
Kingfisher Blue
Kingfisher Red
Kingfisher Strong Fresh
London Pilsner
UB Export
Kalyani Black Label
Kalyani Black Label Strong
Bullet

11. • Indianalcoholic beverages company, and
the world's second-largest spirits company
by volume
•Originatedas a trading company called
McDowellandCompany,
founded in India in 1826by Angus
McDowell
•Subsidiary of the UnitedBreweriesGroup,
and headquarteredat UB Tower in
Bangalore, Karnataka.
•Largest Spirits Company in India, with
60%market share

12. •USL exports its products to over 37
countries.
•Has more than 140 liquorbrands, of
which 20 brands each sell more than
onemillioncases annually while 5
brands each sell more than 10 million
cases annually.
•Major brands include Antiquity,
Black Dog, Signature, White Mischief

13. •Information and Broadcasting
ministry of India has banned direct
advertisement
•‘Regulated’industry- movement,
prices of intermediate goods
(molasses, ethanol) tightly controlled
- state governments exert
considerable influence.
•Subject to licensingunder
Industrial Development and
RegulationAct, 1956
•Cap on licensed capacity; special
license for expansion.
•Plethora of dutiesandtaxes from
bottling to salesstage;varying from
state to state.
Political Risk

14. • Rs 45/litre
Liquorfrom
spirits
• Rs 60/litre
Premium
MaltWhisky
• 60%SalesTax
• 230%Importduty
•Limitedhoursof trading, prohibiting
sale of alcohol between 11 pmto 8 am.
• Consumption of alcohol prohibitedin the states
of Gujarat,Manipur, and the union
territory of Lakshadweep
•Keralagovernmenthas planned to implement
almost fullprohibitionof hard liquor
•Illegal to sell or supply any liquor to Andamanese,
Nicobareseor any other ScheduledTribes.
• Legaldrinkingage in india is in most of the states
and 18 in other states

15. • Low marginlevelsbecause of
State deciding the retail prices.
• Taxes and duties constituting
more than 50%of final consumer
price
• Decrease in salesof liquor, and in
turn revenue, which may lead to
decrease in supply
•Increasesaleof spurious country
liquor.
Economic Social & Technological
• Increase in consumer
awarenessregarding harmful
effects of liquor.
• Newproduct developments
needed– Diet Whisky.
•Newpackaginginitiatives
needed to reduce costs and
curtail counterfeiting.

16. PrateekKathuria
Chhavi Rahul
AishwaryaRaj Khanna
KshitizSinghal
ShubhamThukral
RitikaSinghPuria