Industry Overview
The global wine industry was projected to grow at a rate of two to two and a half percent during 2018-22, supported by increasing demand for premium wines, rising disposable incomes, lifestyle changes, and greater consumer awareness. Premiumization has encouraged major producers to acquire vineyards and expand higher-value product portfolios. Alcoholic beverages contain ethyl alcohol produced through fermentation or introduced during processing.
India has a large and rapidly developing alcoholic beverage industry comprising Indian Made Foreign Liquor (IMFL), country liquor, foreign liquor bottled in origin (BIO), beer, wine, and illicit alcohol. The industry is highly regulated and subject to significant taxation, with market conditions and alcohol policies varying considerably across states. IMFL includes products such as whisky, rum, brandy, vodka, and gin, while beer and wine have developed distinct consumer markets.
The report covers the Indian liquor and wine industry, including market characteristics, growth drivers, competitive dynamics, regulatory and social factors, wine and IMFL manufacturing processes, packaging, machinery and equipment, raw materials, suppliers, BIS specifications, and industry analysis. It also examines premiumization, production technologies for wine and spirits, and the financial and operational considerations associated with an alcoholic beverages processing and bottling plant.
Cost Estimation
| Particulars | Value |
|---|---|
| Land & Building (4 Acres) | Rs. 11.07 Cr |
| Plant & Machinery | Rs. 6.50 Cr |
| Working Capital for 2 Months | Rs. 3.08 Cr |
| Total Capital Investment | Rs. 21.28 Cr |
| Rate of Return | 66% |
| Break Even Point | 33% |
Content Index
- INTRODUCTION
- INDIAN MADE FOREIGN LIQUOR:
- COUNTRY LIQUOR:
- BEER:
- FOREIGN LIQUOR BOTTLED IN ORIGIN (BIO):
- WINE:
- INDIAN LIQUOR INDUSTRY IS DIVIDED INTO TWO BROAD CATEGORIES
- INDIAN LIQUOR INDUSTRY IS GROWING AT 12-15% P.A OVER LAST 2 YRS.
- LEGAL ENVIRONMENT
- CUSTOM & DUTIES
- SOCIAL ENVIRONMENT
- WESTERN CULTURE INFLUENCE
- PROHIBITION IN INDIA
- THREAT OF NEW ENTRANTS
- BARGAINING POWER OF CUSTOMERS
- BARGAINING POWER OF SUPPLIERS
- PREDICTIONS REGARDING RAW MATERIALS
- RIVALRY
- ALCOHOLIC BEVERAGE
- THERE ARE A LARGE VARIETY OF ALCOHOLIC BEVERAGES
- OTHER FORMS OF ALCOHOL
- DIFFERENT ALCOHOLIC DRINK
- 1. WHISKY
- 2. RUM
- 3. BRANDY
- 4. VODKA
- 5. BEER
- 6. GIN
- WHISKY:-
- WHISKY
- TYPES OF WHISKY:
- SPARKLING WINE
- SPARKLING WINES
- CHAMPENOISE METHOD
- THE TRANSFER METHOD
- METHODE ANCESTRALE
- BULK METHOD
- USES AND APPLICATIONS
- CHARACTERISTICS OF THE INDIAN LIQUOR MARKET
- FACTORS INFLUENCING THE GROWTH OF ALCOHOL INDUSTRY IN INDIA
- URBANIZATION:
- FAVOURABLE DEMOGRAPHICS:
- CHANGING SOCIAL NORMS:
- INCREASED ALCOHOL ACCESSIBILITY AND AVAILABILITY:
- STRATEGIES FOR PROMOTION AND ADVERTISEMENT OF ALCOHOL PRODUCTS
- SURROGATE ADVERTISING OF ALCOHOL PRODUCTS:
- SPONSORSHIP OF EVENTS:
- PROMOTION AND THE ENTERTAINMENT INDUSTRY:
- ATTRACTIVE PACKAGING AND LABELING OF ALCOHOL PRODUCTS:
- NEWER PROMOTION CHANNELS:
- MARKET OVERVIEW OF WINE INDUSTRY
- LIQUOR MARKET IN INDIA
- ALCOHOL COMPANIES AND THEIR MAJOR BRANDS IN INDIA
- MARKET OVERVIEW OF IMFL (INDIA MADE FOREIGN LIQUOR)
- 1. AT AN INFLECTION POINT
- INITIATE BUY; 50% POTENTIAL UPSIDE FROM CMP
- 2. INVESTMENT THESIS
- 2.1 INVESTMENT POSITIVES–OPPORTUNITY TO RE-RATE
- RDCK’S CURRENT VALUATION DOES NOT TRULY REFLECT ITS PREMIUM POSITIONING
- PREMIUM PORTFOLIO EXPANDING
- PREMIUM VODKA AND BRANDY BRANDS ALREADY POSITIONED STRONGLY
- PREMIUM BRANDING AIMED AT OFFERING A WIDER PRODUCT PORTFOLIO AND WIDEN CUSTOMER BASE
- MARKET SHARE GAINS GOING FORWARD
- PREMIUM MARKET TO OUTPERFORM REGULAR MARKET GROWTH
- VERTICAL INTEGRATION TRANSFORMED THE COMPANY
- TRANSFORMATION INTO A PREMIUM LIQUOR COMPANY FROM A BULK PRODUCER
- SCOPE OF RE-RATING ON CONSISTENT MARKET SHARE GAINS IN PREMIUM SEGMENT
- 25% EPS CAGR, IMPROVEMENT IN RETURN RATIOS
- 2.2 INVESTMENT NEGATIVES
- STRINGENT LAWS MAKE LIFE TOUGH
- HIGHLY REGULATED INDUSTRY
- PROHIBITION HAS MADE A COMEBACK IN THE POLITICAL VOCABULARY – KERALA AND BIHAR HAVE ANNOUNCED PHASED PROHIBITION
- PROHIBITION RELATED UNCERTAINTIES
- VOLUMES TO BE IMPACTED IN SHORT TERM
- ALMOST NO PRICE HIKES HAVE COME THROUGH IN THE PAST 18-24 MONTHS FROM STATES WITH PRICE CONTROLS
- PRICE HIKE IN THE HANDS OF GOVERNMENT BODIES
- GST IMPACT COULD HAVE A NEGATIVE MARGIN IMPACT
- RISK FOR MARGINS POST GST
- HIGHER TAXES FOR LIQUOR COMPANIES
- 3. RDCK’S PREMIUMISATION STRATEGY HAS BEEN SUCCESSFUL
- STRONG SUCCESS IN MAGIC MOMENTS, POSITIVE EARLY SIGNS ON MORPHEUS BRANDY
- PREMIUMISATION IS THE KEY CATALYST TO MARGIN IMPROVEMENT
- TRANSFORMING TO PREMIUM FROM BULK
- MAGIC MOMENTS GIVING COMPETITION A TOUGH TIME
- RDCK IS A LEADER IN THE DOMESTIC VODKA MARKET
- FOCUSING ON BRANDY SEGMENT TO AUGMENT MARKET SHARE
- TARGETING BRANDY MARKET AS WELL
- MORE BRAND LAUNCHES
- NINE BRAND LAUNCHES SINCE 2006
- 4. PRICING OUTLOOK MORE POSITIVE
- GOVERNMENT CONTROLLED DISTRIBUTION
- SOME PRICE HIKES IN RECENT TIMES
- TREND OF LOWERING OF TAXES ON LIQUOR IN SOME STATES
- OVERALL POSITIVE OUTLOOK
- 5. COMPETITIVE DYNAMICS
- FOURTH LARGEST PLAYER IN VOLUME TERMS
- RDCK’S VOLUMES STAND AT 18.2MCS, 6.4% MARKET SHARE
- 6. WELL POSITIONED TO CAPITALIZE ON RISING PREMIUM IMFL CONSUMPTION
- INDIAN SPIRITS MARKET ON GROWTH TRAJECTORY
- INDIAN PREFERENCE - HIGHER ALCOHOL CONTENT AT A CHEAPER PRICES
- 6.1 INDIAN SPIRITS MARKET SIZE AND GROWTH OPPORTUNITY
- MARKET SALES VALUE GROWTH –6.3% CAGR FY16-20E
- KEY TRENDS:
- 6.2 STRUCTURAL CHANGES IN THE INDUSTRY MAKES INDIAN SPIRITS MARKET MORE
- ENTRY OF GLOBAL MAJORS
- SHIFT FROM VOLUME GROWTH TO VALUE GROWTH
- INCREASING PREMIUMISATION–IMPROVING PRODUCT-MIX
- 6.3 VODKA TO OUTPERFORM OVERALL IMFL GROWTH IN THE COMING YEARS
- POTENTIAL MARKET GROWTH FOR WHITE SPIRITS (VODKA) AN OPPORTUNITY FOR RDCK
- WHITE SPIRITS IS JUST 3.5% OF ALCOHOL VOLUME IN INDIA (VS 47% GLOBALLY)
- 6.4 KEY DRIVERS FOR GROWTH OF LIQUOR CONSUMPTION IN INDIA
- INCOME GROWTH
- ATTRACTIVE DEMOGRAPHICS
- UNDERPENETRATED MARKET
- 6.5 RURAL CONSUMPTION TO GROW 3.8X AND TIER 2 & BELOW CITIES TO GROW 4.4X BY 2025
- 7.0 FINANCIAL ANALYSIS
- 7.1 REVENUE TO RISE 5% IN FY18, 6% IN FY19
- BRANDED IMFL 73% OF REVENUE; CONTRIBUTION OF COUNTRY LIQUOR, BULK SPIRITS ON THE DECLINE
- REVENUE CAGR OF 6% FY17-20E
- EXPECT SALES CAGR OF 6% OVER FY17-19E
- WE EXPECT RDCK'S SALES TO GROW AT A CAGR OF 6% OVER FY17-19E DRIVEN BY:
- STAGES OF THE WINE MAKING PROCESS
- HARVESTING
- CRUSHING AND PRESSING
- FERMENTATION
- CLARIFICATION
- AGING AND BOTTLING
- MANUFACTURING PROCESS OF CARBONATED WINE/SPARKLING WINE
- FERMENTATION IN SEALED TANK
- SECOND FERMENTATION IN BOTTLE
- THE TRADITIONAL METHOD
- PRESSING
- DEBOURBAGE
- FIRST FERMENTATION
- ASSEMBLAGE
- ADDITION OF LIQUEUR DE TIRAGE
- SECOND FERMENTATION
- MATURATION
- REMUAGE
- STACKING SUR POINTES
- DEGORGEMENT
- DOSAGE (LIQUEUR D’EXPEDITION)
- CORKING
- PROCESS FLOW DIAGRAM OF WINE (CARBONATED WINE)
- METHOD OF CARBONATION
- PRODUCTION TECHNOLOGY OF CHAMPAGNE
- THE GRAPES VARIETY FOR CHAMPAGNE
- BASE WINE PREPARATION
- PRIMARY FERMENTATION
- MALOLECTIC FERMENTATION
- CLARIFICATION
- BLENDING
- STABILIZATION
- SECONDARY FERMENTATION AND BOTTLE AGING
- REMUAGE
- DISGORGING
- MANUFACTURING PROCESS OF IMFL BOTTLING PLANT
- PROCESS FLOW DIAGRAM FOR IMFL BOTTLING PLANT
- PROCESS DESCRIPTION
- DETAILED PROCESS DESCRIPTION
- 1. ALCOHOL MASS METERING SYSTEM (SPIRIT CONCENTRATION METER)
- 2. RECEPTION SYSTEM FOR ALCOHOL/WATER MIXTURES
- 3. BLENDING SYSTEM FOR ALCOHOL/WATER MIXTURES
- 4. WATER DEAERATION SYSTEM
- 5. FILTRATION SYSTEMS
- 6. EQUIPMENT FOR STORAGE TANK FACILITIES
- 7. BATCH MIXING SYSTEM
- 8. CONTINUOUS IN-LINE BLENDING SYSTEM,
- 9. COMBINED BLENDING SYSTEM
- 10. CARBONATION AND BEVERAGE ANALYSIS
- 11. MOBILE METERING UNITS
- 12. PRODUCT TRACING FOR INTERNAL DOCUMENTATION BY MEANS
- 13. CLEANING SYSTEM
- PACKAGING
- PACKING STANDARDS:
- GREEN COLOURED BEER BOTTLES
- CLEAR COLOURED BORDEAUX BEER BOTTLES
- PACKAGING REQUIREMENT:
- DETAILS OF CITRUS WINE
- MANUFACTURING PROCESS OF FRUIT WINES FROM FRUIT JUICES OF LOW SUGAR CONTENT
- SWOT ANALYSIS OF ALCOHOL INDUSTRY
- STRENGTHS:
- WEAKNESSES:
- OPPORTUNITIES:
- THREATS:
- LIST OF MACHINERY AND EQUIPMENTS USED IN ALCOHOLIC BEVERAGES PLANT
- MULTI-TUBE COAXIAL HEAT PASTEURIZER
- ACCESSORIES
- BALANCE TANK
- PASTEURIZER FEED PUMP
- HOT WATER PREPARATION SYSTEM
- MULTI COAXIAL HEAT EXCHANGER/ HOLDING TUBES
- HOT WATER RECIRCULATION PUMP
- CIP SYSTEM (FULLY AUTOMATIC)
- CIP SYSTEM CAN BE CONFIGURED WITH THE FOLLOWING OPTIONS TO SPECIFIC NEEDS
- ONLINE DUPLEX FILTER
- ROTARY BOTTLE RINSING MACHINE
- UNI BLOCK FILLING AND CAP SEALING MACHINE
- SLAT CHAIN CONVEYOR
- INSPECTION CONVEYOR
- ROTARY LABELING MACHINE
- CASE PACKER MACHINE
- AUTOMATIC CARTON SEALER MODEL
- PROCESS FLOW CHART OF ALCOHOLIC BEVERAGES PROCESSING PLANT
- B.I.S. SPECIFICATIONS
- RECTIFIED SPIRIT
- PRODUCTION OF BRANDY
- COMPONENTS OF BRANDY:-
- ETHYL ALCOHOL:-
- OTHER ALCOHOLS:
- METHYL ALCOHOL (WOOD ALCOHOL):-
- ALDEHYDES:-
- ESTERS:-
- COLUMN STILLS:-
- CONDENSERS:-
- PRODUCTION OF RUM
- TYPES OF RUM AND THE RAW MATERIALS:
- PRETREATMENT OF RAW MATERIAL:-
- FERMENTATION:-
- 1. FERMENTATION TEMPERATURE:-
- (2) PH VALUE:-
- (3) FERMENTATION TIME :-
- (4) YEAST :-
- THE BEST YEAST ARE FROM MOLASSES.
- DISTILLATION:-
- CONTINUOUS DISTILLATION:-
- MATURING:
- PRODUCTION OF SPIRIT FOR GIN
- RAW MATERIAL:
- PRODUCTION FROM GRAIN:
- 1 COOKING:-
- CONVERSION:
- FERMENTATION:-
- MANUFACTURING PROCESS OF WHISKY
- 1. PRESSING:
- 2. FERMENTATION:
- (A) ALCOHOLIC FERMENTATION:
- (B) ACIDIC FERMENTATION:
- 3. BOTTLING:
- VODKA:
- TREATMENT METHODS
- MANUFACTURERS OF ALCOHOLIC BEVERAGES
- LIST OF IMFL/LIQUOR MANUFACTURER IN INDIA
- SUPPLIERS OF RAW MATERIALS
- GRAPE FRUITS
- ENA
- GLASS BOTTLES
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS OF COMPLETE PLANT AND MACHINERY
- SUPPLIERS OF PLANT AND EQUIPMENTS
- COLUMN
- CONDENSER
- BOTTLE FILLING MACHINE
- BOTTLE SEALING MACHINE
- BOTTLE WASHING MACHINE
- LABELLING MACHINE
- CONVEYOR BELT
- STAINLESS STEEL TANKS
Appendix
- APPENDIX – A:
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
An alcoholic beverages manufacturing project involves the controlled processing, fermentation, blending, treatment, packaging, and storage of alcoholic products.
Depending on the product portfolio, the facility may cover wine, beer, IMFL, brandy, rum, gin, whisky, or vodka. The project also requires appropriate process equipment, storage systems, filtration, cleaning systems, quality-control arrangements, packaging machinery, utilities, and regulatory compliance. The detailed process varies according to the beverage and production technology adopted.
The major segments described in the report are IMFL, country liquor, foreign liquor bottled in origin (BIO), beer, wine, and illicit alcohol.
IMFL includes products such as whisky, rum, brandy, vodka, and gin. Country liquor is generally produced by licensed local distilleries, while BIO represents imported liquor bottled at origin. Beer and wine form separate beverage categories with their own raw materials, processing methods, consumer markets, and packaging requirements.
Wine is generally manufactured through harvesting, crushing and pressing, fermentation, clarification, aging, and bottling.
For sparkling or carbonated wines, additional processing can include secondary fermentation, carbonation, maturation, remuage, disgorging, dosage, and corking, depending on the production method. The report also discusses traditional sparkling-wine methods and the production technology associated with Champagne-style beverages. Process conditions, equipment, and treatment stages vary according to the type of wine being produced.
An alcoholic beverages plant can use processing, storage, filtration, cleaning, filling, labeling, and conveying equipment.
The report identifies equipment such as multi-tube coaxial heat pasteurizers, balance tanks, feed pumps, heat exchangers, hot-water systems, CIP systems, duplex filters, bottle rinsing machines, filling and cap-sealing machines, conveyors, labeling machines, case packers, carton sealers, storage tanks, columns, condensers, and bottle washing equipment. The actual equipment configuration depends on the product and manufacturing process.
An IMFL bottling plant generally involves alcohol metering, reception, blending, water deaeration, filtration, storage, mixing, carbonation or beverage analysis where applicable, cleaning, and packaging.
The report specifically covers alcohol mass metering, alcohol and water mixture reception, blending systems, water deaeration, filtration systems, storage facilities, batch and continuous in-line blending, mobile metering units, product tracing, and cleaning systems. Bottling operations then integrate rinsing, filling, sealing, labeling, inspection, conveying, case packing, and carton sealing.
Raw materials depend on the alcoholic beverage being produced and can include fruits, grapes, cereals, molasses, rectified spirit, water, yeast, and packaging materials.
Wine production commonly uses grapes or other fruit juices, while spirits may use grain, molasses, or other permitted agricultural feedstocks. The report specifically identifies grape fruits, ENA, and glass bottles among the supplier categories. Selection and quality of raw materials influence fermentation, blending, distillation, product consistency, and finished-product quality.
Regulatory compliance is a major consideration because alcoholic beverages are subject to extensive taxation, licensing, product standards, and state-level controls.
The report addresses the legal environment, customs and duties, prohibition, government-controlled distribution, and B.I.S. specifications. Alcohol policies can differ substantially between Indian states, affecting manufacturing, distribution, taxation, pricing, and retail operations. A project therefore requires assessment of applicable central and state regulations, licensing requirements, product standards, excise provisions, and operational compliance before implementation.
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