Liquior Industry
* Content • Introduction • Performance of the industry • List of major players of the sector. • Legal environment • Social environment • Economic environment • Porter‟s 5 forces model * 3. Introduction • Indian Liquor Industry is divided into 2 broad categories Indian Made Foreign Liquor (IMFL) Country Made Liquor • Indian Liquor Industry with market value of INR 8500 Crore against INR 900 Crore in 1999 & is growing at 12-15% P.A over last 2 yrs. • Shift from country liquor to IMFL because of rising per capita. http://www.livemint.com/articles/2011/11/23210054/B oom-time-for-country-liquor.html * 4. Industry Structure Alcoholic beverages (8500 Crore) IMFL Country Liquor Rs 6150 Crore Rs 2350 CroreBrown Spirits White Spirits Licensed Illicit Whisky Vodka Brandy Gin Rum http://www.livemint.com/articles/2011/11/23210054/ Boom-time-for-country-liquor.html * 5. Major Competitors Manufacturer Brands United Breweries (UB) Group( Bangalore) King Fisher, Kalyani Black Label, Signature, Blue Riband Shaw Wallace (Calcutta) Haywards Jagajit Industries (Kapurthala, Punjab) Aristocrat Mohan Meakins (Solan, Himachal Pradesh) Golden Eagle Associated Breweries & Distilleries (Mumbai) London Pilsner, Smirnoff, Gilbeys Green Label, Malibu, Archer‟s Peach Schnapps * 6. Macro Economic Environment • Legal • Social • Economic * 7. Legal Environment • Ban on direct advertising • Excise regulations and Licenses • „Regulated‟ industry - movement, prices of intermediate goods (molasses, ethanol) tightly controlled - state governments exert considerable influence. • Subject to licensing under Industrial (Development and Regulation) Act, 1956 • Cap on licensed capacity; special license for expansion • Plethora of duties and taxes from bottling to sales stage; varying from state to state. * 8. Custom & Duties • Sales tax, Bottling Fee, Litre Fee, Vend Fee, Privilege Fee, Import/ export Pass duty • Other taxes levied are: Excise Duty : Liquor from