Presented by :Ashutosh Singh (M-13)Rohit Singh Bhati (M-42)

Overview

Indian Alcohol Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years.

The industry is estimated to have sold 115 mn cases of IMFL last year.

The sector is expected to maintain its CAGR of 15% while the premium segment Wine and Vodka is expected to grow at a higher rate.

With consolidation and foreign acquisitions gaining steam the sector is about to witness next phase with realization rising in line with that of their foreign counterparts.

Market Share

USB

Radico Khaitan

Mohan Meakin

Jagatjit

Other

International players

The major international players are Pernod Richard, Remy The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo has tied up with Radico for Cointreau, and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits)entering Indian markets in brown spirits)

Investment Rationale

Inherent Potential, Deregulation, western cultural Inherent Potential, Deregulation, western cultural influence and high entry barriers has helped the industry in influence and high entry barriers has helped the industry in notching up higher sales growth.notching up higher sales growth.

Alcohol sale is driven by the high GDP growth and more Alcohol sale is driven by the high GDP growth and more people entering the drinking club with newly obtained prosperity people entering the drinking club with newly obtained prosperity or from up trading from the existing brand.or from up trading from the existing brand.

Alcohol

WhiskeyBeerWineVodkaRumGin etc…

WhiskeyWhiskey

Whiskey or whisky refers to a broad category of alcoholic beverages that are distilled from fermented grain ash and aged in wooden casks.

History1406: First written record of

Whisky in Ireland

1496: First mentioned in Scotland

The word „Whisky“ was first

used in 1736

Previously called uisge beatha

(Gaelic) -> aqua vitae (latin)

Different types of Whisky

The two basic types of Scotch are Malt and Grain

– Malt: made entirely from malted barley

– Grain: made from malted and unmalted barley along with other grain

Malts and Grains are combined in various ways

– Single malt, single cask, vatted malt, blended whisky

Surveys/Opinions

Do you appreciate good Whisky?

91%

9%

Yes

No

Surveys/Opinions

How often do you drink Whisky?

54%

31%

15%

Once/month

One/week

few times/week

Surveys/Opinions

Ice?

36%

46%

18%

Yes

No

Depends

Surveys/Opinions

Water?

36%

18%

46%

Yes

No

Depends

Surveys/Opinions

Favorite types of Whisky

58%

24%

6%12%

Single Malt

Bourbon

Irish Whiskey

No Preference

Scotch whisky

Irish Whiskey

American Whiskey

Canadian Whiskey

Indian Whisky

The different types of whiskies/whiskeys are:

Whisky In India

Made from various distilled spirits from predominantly molasses but nowadays barley malt is also used.

Some of the famous Indian whiskies are : Royal Challenge, Bagpiper, Antiquity

Contd..

The largest quantity of Whisky is produced in India

90% of the "whisky" consumed in India is molasses based

The sub-continent was the largest global market for whisky, in all its variants, last year, according to a new report from Canadean.

The report said that whisky, or whiskey, consumption in India reached around 52 million cases in 2002.

It is 20 per cent higher than that of the US, the second-largest market.

Contd…

In India Generally Blended Whiskey are served.While 92 million cases of whisky were sold in India in 2008,

a mere 35,000 cases of this was malt. The bright side of this is that it means there is huge potential for growth.

Whiskey is served in the following ways:

Up

On the rocks

Neat

With Mixers

Whiskey is generally served in an old fashioned glass

4th largest selling Whisky in the world4th largest selling Whisky in the world

Market leader with 60% market shareMarket leader with 60% market share

Smart Pack won a Silver at the 2005 Flexible Packaging Smart Pack won a Silver at the 2005 Flexible Packaging

Achievement Awards and also got special Citations at 18th Achievement Awards and also got special Citations at 18th

DuPont Awards for Innovation in PackagingDuPont Awards for Innovation in Packaging

Brand Highlights

Type: Blended Grain Whisky

Company Name: USB Group

Place of Origin: India

India’s favorite whisky.Constant innovations in packaging, marketing, promotionsand consumer events has helped maintain leadership.

USP:

Superior whisky blended with scotch and selected Indian malts matured in Scotch Oak cask. In the Scotch oak cask the blend goes though a unique Subtraction-Addition-Processing method.Firstly the oak wood cask ensures bad congeners are removed from the malt spirit giving it a woody finish and a golden glowSubsequently it releases Tannin and polphenols, which imparts aroma and colour.Finally good congeners add to the smoothness of No.1 giving it a faintly sweet character

Blend :