For the complete report, get in touch with us at : info@netscribes.com Alcoholic beverages market in India is dominated by whisky; however, the white spirits market has been the fastest growing segment. Due to changing cultures, consumers are gradually opting to visit pubs and lounges more frequently. With a growth in young population in India, the youth is more inclined to drink lighter spirits which is spurring growth in white spirits such vodka, rum, gin and tequilla. Players in the industry are launching regular and premium brands to tap this potential and growing demand. The report begins with an introduction section wherein the clear differentiation of the alcohol beverages in India has been shown with a focus on the white spirits category in India. This is followed by the market overview section providing the size of the Indian Made Foreign Liquor (IMFL) market in India with the segmentation in terms of market size and players. This is followed by the market overview of the white spirits in India providing the size of the market and projected percentage growth of this segment comparing it to other alcoholic beverages in the market. The import and export figures of vodka have been highlighted including the market share of major countries. This is followed by a description of the segments of the white spirits market wherein the market size in terms of volume has been provided for the vodka segment. The key segments in the vodka market and their share has also been given. A brief description of the other white spirits is included and information regarding the major imported brands is provided. An analysis of the drivers explain the factors for growth of the industry including rising income levels, changing lifestyles & higher acceptance, huge market potential, entry of international brands and growth in organized retail. The key challenges identified encompass high tax structure and improper regulations and advertising ban on alcohol. Key trends in the market have also been analyzed including innovative packaging and flavours, increasing joint ventures, rising mergers and acquisitions, promotional activities and launch of flavoured energy drinks. The competition section provides an overview of the competitive landscape of the market with the share of players in the vodka market. A product portfolio matrix has also been illustrated covering all the players. It also includes complete profiles of the major domestic and foreign players in the market.

1. White Spirits Market – India
August 2010

2. Executive Summary
White Spirits Market in India was valued at INR X bn in 20– and is expected to grow at Y% over
20-- - --
The market primarily includes – Vodka and Gin with white rum and tequila accounting for a
Market small share
LE
Changing profile of consumers and their propensity to experiment with premium brands and
varieties of spirits has fueled growth potential in the market
Drivers:
MP
Rising income levels
Challenges:
High tax structure and improper
Drivers &
Challenges A
Changing lifestyles & higher acceptance
S
Huge market potential
Entry of International brands
Growth in Organized retail
regulations
Advertising ban on alcohol
Innovative packaging and flavours Promotional activities
Trends Increasing joint ventures Launch of flavoured energy drinks
Rising mergers and acquisitions
The market has a huge influx of foreign players who have either set up joint ventures or have set
up subsidiaries to capitalize on the potential in the market
Market entry has barriers owing to the stringent regulations and tax structure of Indian
Competition government
Leading players are also setting up their own liquor outlets to reach the end consumers in an
efficient manner
WHITE SPIRITS MARKET IN INDIA 2010.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Competition
WHITE SPIRITS MARKET IN INDIA 2010.PPT 3

4. White spirits is a very small segment of the IMFL market
however it is showing huge growth prospects IMFL Market
IMFL Market – Overview Market Size & Growth
• IMFL market in India is characterized by brown and
INR bn
white spirits A%
White spirits occupy a very nominal share x q
LE
p
• With growing number of people in the drinking age,
y
P
the industry on a whole is set to grow rapidly
• The industry has rapidly spread to even Tier II and
M
z
Tier III cities with leading players offering their
brands through licensed outlets
IMFL Market (Segmentation by Players) SA 0
2008
Spirits Market Segmentation
2009
Company 5 Segment 4 Total Market – INR Q bn
Company 4 E% S%
D% Segment 3
R%
Company 3 C%
A% Company 1
P% Segment 1
Q%
B% Segment 2
Company 2
Source:
WHITE SPIRITS MARKET IN INDIA 2010.PPT 4

5. White spirits market in India is dominated by vodka and is
emerging as a lucrative segment in the liquor industry White Spirits
Market
White Spirits Market – Overview Market Size & Growth
• White spirits is an emerging segment in the liquor market in
~ A mn cases of white spirit was sold in 20-- - --; a growth of
India and accounts for a% of the industry
Z% over the previous year wherein vodka occupied b%
• Led by vodka, white spirits also comprises of gin, white rum
LE
and tequila
• With changing profile of drinkers, especially in the age group INR bn
B%
P
c-d yrs, the consumption of white spirits such as vodka and gin j b
is fast catching up in India a
M
• Social drinking habits and experimenting attitude with variety k
A
of drinks as cocktails is spurring growth especially in vodka
l
S
• Launch of international brands in the premium spirits segment
is attracting consumers to shift from dark spirits like A and B
Growth of Segments
0
2008 2009
% 20YY to 20YY % 20XX to 20XX
p Segment 5 has p
i j
e Predominant
been the fastest
q f
q g
d growing segment
share of 1 l
b
r a and is expected to 0
c bottles
maintain its -h
0 position -r
Segment Segment Segment Segment Segment Segment Segment Segment Segment Segment
1 2 3 4 5 1 2 3 4 5
Source:
WHITE SPIRITS MARKET IN INDIA 2010.PPT 5

6. Vodka consumption in India is growing manifold with
changing profiles of drinkers
Vodka Market – Overview Market Size & Growth
• Vodka forms a huge market under white spirits in
Vodka’s current share is ~A-B% of the total liquor
India followed by gin and white rum
industry and is projected to grow to C-D% in X yrs
• Consumption is growing owing to its increasing
LE
popularity amongst youngsters as it is viewed as
very trendy and youthful
P
mn cases
• Maximum consumption of Vodka takes place in W a
Indian market
SAM
part of India which is followed by X, Y and Z
• More than Z% of vodka sales in Asia is from the b
c
B%
w
x
y
Vodka Market Segmentation (20--) v
d u
Market Price Band A% t
Segments Brands
Share (INR) s
e r
p q
Brand 1, Brand
Segment 1 A% X-Y
2, Brand 3
0
Brand 4, Brand 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Segment 2 B% P-Q 5, Brand 6 ,
Brand 7
Forecast
Source:
WHITE SPIRITS MARKET IN INDIA 2010.PPT 6

7. Drivers & Challenges – Summary
Drivers
Rising income levels
Challenges
Changing lifestyles & higher High tax structure and improper
acceptance regulations
Huge market potential Advertising ban on alcohol
Entry of International brands
Growth in Organized retail
WHITE SPIRITS MARKET IN INDIA 2010.PPT 7

8. Trends – Summary
Innovative packaging and
flavours
Launch of flavoured energy
Increasing joint ventures
drinks
Key
Trends
Promotional activities Rising mergers and acquisitions
WHITE SPIRITS MARKET IN INDIA 2010.PPT 8

9. Major Domestic Players (2/9)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters State 1 Revenue Profit
INR mn Profit / Loss INR mn
Founded 19XX p
d
t
c
q
b u
Products Product 1, 2, 3, 4 r a
v
s
Key People Mr. X – MD 0 0
2005-06 2006-07 2007-08 2008-09
Business Highlights
LE
• Is engaged in the business of manufacture, marketing and sale of Industrial Alcohol comprising X and Y, Z, and Indian
Made Foreign Liquor (IMFL)
MP
• In the IMFL segment, it has brands like ‘Brand 1’
• Launched its own IMFL brands in state 1, 2, 3, 4, 5, 6, 7
SA
• Has 2 distilleries in state 1 and 2
Expansion Plans:
• The company has embarked upon an expansion plan of INR X mn to upgrade and expand its production facilities,
along with setting up latest facilities in utility management to enable it to lower the cost of production while
continuing with its production
Source:
WHITE SPIRITS MARKET IN INDIA 2010.PPT 9

10. Thank you for the attention
The White Spirits Market report is part of Research on India’s Food & Beverage Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
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