Code #3737
Industry Overview
Alcoholic beverages are drinks containing ethyl alcohol of agricultural origin, produced either through natural fermentation or through the addition of alcohol during processing. Ethanol is naturally produced when yeast converts sugars present in fruits, cereals, and sugarcane into alcohol. India has a large and diverse alcoholic beverage industry comprising Indian Made Foreign Liquor (IMFL), country liquor, foreign liquor bottled in origin (BIO), beer, and wine.
The Indian alcohol industry is highly regulated and subject to significant taxation, licensing requirements, and state-level variations. IMFL includes spirits such as whisky, rum, brandy, vodka, and gin, while country liquor is generally produced from rectified spirits derived from grains or molasses. Beer and wine have also developed significant consumer markets, with beer gaining popularity among younger consumers and professionals.
The industry includes both domestic and international players, with premiumisation, brand development, product diversification, packaging, and changing consumer preferences influencing market dynamics. Alcohol availability and retail policies vary considerably between Indian states, while prohibition policies and government-controlled pricing and distribution can affect industry operations. The report also covers alcoholic beverage production technologies, wine and sparkling wine processing, IMFL bottling, packaging, machinery, raw materials, suppliers, BIS specifications, industry competition, and financial analysis.
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
- XPECT 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 OF
- 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
- 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
The major segments of the Indian alcohol industry are IMFL, country liquor, foreign liquor bottled in origin, beer, and wine. IMFL covers spirits such as whisky, rum, brandy, vodka, and gin. Country liquor is generally produced by licensed local distilleries using economical raw materials. Beer and wine constitute separate beverage categories with their own production and distribution characteristics, while imported liquor represents a smaller premium-oriented segment of the Indian market.
Indian Made Foreign Liquor refers to spirits manufactured in India in styles and categories commonly associated with international liquor products. The segment includes whisky, rum, brandy, vodka, and gin. Production typically involves alcohol handling, blending, filtration, quality control, storage, and bottling operations. The report also discusses IMFL bottling systems, alcohol mass metering, water deaeration, filtration, storage tanks, blending systems, carbonation and beverage analysis, cleaning systems, packaging, and product tracing.
Alcoholic beverage manufacturing processes vary according to the product but commonly involve raw material preparation, fermentation, clarification or distillation, blending or maturation, filtration, and packaging. Wine production can include harvesting, crushing and pressing, fermentation, clarification, aging, and bottling. Spirits production may involve fermentation followed by distillation and maturation or blending. An IMFL bottling operation additionally requires controlled alcohol and water handling, filtration, storage, blending, bottle rinsing, filling, sealing, labeling, inspection, and case packing.
An alcoholic beverages plant can require process, storage, packaging, and cleaning equipment selected according to the product and process configuration. The report lists equipment including 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, inspection conveyors, labeling machines, case packers, and carton sealers. Distillation-related equipment such as columns and condensers, together with stainless steel tanks, may also be required for relevant spirit manufacturing operations.
The alcohol industry is highly regulated because alcoholic beverages are subject to extensive controls covering production, taxation, licensing, distribution, retailing, labeling, and sales. The report highlights that regulations and retail policies can differ substantially between Indian states. Government-controlled distribution, excise duties, customs duties, price controls, and prohibition policies can influence market access and operating conditions. Consequently, an alcoholic beverage project requires careful consideration of applicable central requirements as well as state-specific licensing, tax, excise, quality, and distribution provisions.
Raw materials depend on the type of alcoholic beverage being produced and can include fruits, grapes, cereals, sugarcane derivatives, molasses, rectified spirit, and extra neutral alcohol. The report specifically discusses grape fruits, ENA, and materials used for different spirits and wines. Beer and grain-based spirits rely on cereal raw materials, while certain country liquors can use grain or molasses-derived spirits and, in some regions, palm-based materials. Selection and specification of raw materials influence fermentation, distillation, product quality, flavor, and final beverage characteristics.
The project report includes key project cost and financial indicators covering land and building, plant and machinery, working capital, total capital investment, rate of return, and break even point. It also contains an appendix covering plant economics, fixed capital, raw materials, salary and wages, utilities and overheads, total working capital, cost of production, annual turnover, financing resources, repayment, depreciation, profit analysis, and projected balance sheets. These sections provide a framework for evaluating the financial structure and operating economics of an alcoholic beverages project.
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