The Indian beer industry is set to flourish with new breweries and international brands coming up in near future. Foreign players acknowledge India as a largely untapped market with strong growth potential. In terms of expected growth rates, India is among the top three beer markets in Asia. The report provides an introduction to categories of beer and consumer preferences in India, a detailed market overview covering the market size and growth, market share by segments and region wise market share in India. An analysis of drivers explain factors contributing to he growth of beer market based on huge market potential, rising income levels and entry of international players. The key challenges discussed are high tax structure and regulatory environment. The trends section explains about the consolidation expected with list of latest mergers and acquisitions, fast growing premium beer segment, emerging new sub-categories of beer and growing demand for barley. Competitive landscape provides the market share of major players and also provides brief profile of players including details of their brands and future plans.

1. Beer Market - India
September 2009

2. Executive Summary
Indian beer market is valued at INR XX bn with volume sales of YY mn cases for FY 20-- - --
The market is expected to grow at an annual rate of a% till 20- -
Market Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth
potential
Drivers &
Drivers:
PLE
– Huge market potential
Challenges:
– Regulatory Environment
M
– Rising income levels – High tax structure
Challenges – Entry of international brands
SA
With current duopoly situation and entry of foreign players, beer industry in India will quickly
witness consolidation
Trends Premium beer segment is outpacing the mainstream beer market touching a growth rate of
between b-c%
Emerging new sub-categories of beer with consumers in India open for experimenting
Growing demand for barley and evolving contract farming
More than d% of the market is controlled by two major players Company 1 (u%) and Company 2
(v%)
Competition
With Company 3 acquiring Company 4, it has potential to emerge as the third major player
The market is set to flourish with W new breweries and X international brands in next Y years
BEER MARKET – INDIA.PPT 2

3. •Market Overview
•Drivers & Challenges
•Characteristics and Trends
•Competition
•Key Developments
BEER MARKET – INDIA.PPT 3

4. Indian consumers prefer strong lagers which has higher
alcoholic content
Categories of beer
Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a
Lager
smoother, mellow beer
Ale
LE
Uses top-fermenting yeast, is a more aromatic and fruity product
P
M
Stout Dark and heavy, with roasted unmalted barley and, often caramel malt or sugar
Mild Beer
Bitter SA
Developed as a sweeter and cheaper alternative to dark ales
Highly hopped for a more dry and aromatic beer. It is pale in colour but strong
Dark Beer Barley is kilned for a long period of time which creates richer flavours
Fruit Beer Fruit, usually berries, is added either during primary fermentation or later
Wheat Beer
Malted wheat and barley are used for this German style beer
(Weizen)
Indian beer market is dominated by Category X and its various shades
Indian beer market is dominated by Category X and its various shades
Source:
BEER MARKET – INDIA.PPT 4

5. With the global beer market being stagnant, the focus of
international firms is on the untapped potential in India
Market Overview Market size & growth
• Indian beer market has witnessed a steady growth of
b% over a decade INR bn
• India is currently among top three markets in Asia in 50 a% x
LE
w
terms of expected growth rates 40 v
• There are X units manufacturing beer in India under u
P
30
license from the Government
• The market is set to flourish with Y new breweries 20
SAM
and Z international brands in the next U years
• Foreign brewers are eyeing the Indian beer market
which is largely untapped and has growth potential
Growth in per capita beer consumption
10
0
2008 2009
Segment share (volume - wise, 20--)
2010e 2011e
Population (mn) Consumption (litres) YY mn cases
q
1.200 q 1,5
p
Segment 1
900
1,0 l%
600
0,5
300
m%
0 0,0
Segment 2
2000 2005 2010
Source:
BEER MARKET – INDIA.PPT 5

6. Drivers & Challenges - Summary
Challenges
Drivers
Regulatory Environment
Huge market potential
High tax structure
Entry of international brands
Rising income levels
BEER MARKET – INDIA.PPT 6

7. Characteristics and Trends - Summary
Rise in barley prices and Increase in merger and
emergence of contract farming acquisition activity
Characteristics
and Trends
New forms of beer being Premium beer market outpacing
introduced in market mainstream beer market
BEER MARKET – INDIA.PPT 7

8. Premium beer segment is outpacing the mainstream beer
market touching a growth rate of between b-c%
Overview Market share of premium beer (volume)
• The Indian beer industry is moving towards
premiumization Type 1
• Lifestyle changes and increasing western culture in u%
LE
India are some of the factors driving the premium
segment
MP
• Many domestic and foreign premium brands are
finding the interests of young urban working class
regular brands
Premium brands in Indian beer market SA
• Premium beers are priced about a% higher than
Growth rate of premium beer
v%
Type 2
0 10 20 30 40 50
Company 1 Brand 1, Brand 2 and Brand 3 %
Type 1 p q
Company 2 Brand 4, Brand 5 and Brand 6
Other Premium Brand 7, Brand 8, Brand 9 and
Brands Brand 10 Type 2 r s
Minimum
Maximum
Source:
BEER MARKET – INDIA.PPT 8

9. Indian beer market presents a huge growth potential in terms of
volume, categories and variants
Competition Market share (20--)
• The Indian beer market is dominated by X players
controlling more than a% of the market Others
• Strong beer is predicted to grow faster as it is d%
LE
perceived to offer value for money alternative to
spirits
P
• With Company 1 acquiring Company 2, it has
M
potential to emerge as the third major player in the
b% Company 3
A
Indian beer market c%
S
Company 4
• The future of beer market in India looks positive with
the entry of many international players
• Beer sales will increase along with increasing number
Market Share (segment wise)
of brands and sub-categories in India
• Existing players like Company 3 and Company 4 are j%
i%
planning to expand their range of products g%
e%
• New players like Company 5 and Company 6 are
bringing their internationally renowned brands to
India
f% h%
• The market is set to flourish with Y new breweries
and Z international brands in the next U years Company 4
Strong Company 3 Mild
Others
Source:
BEER MARKET – INDIA.PPT 9

10. Thank you for the attention
The Beer Market - India report is a part of Research on India’s Food & Beverage Industry
Series.
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