Alchohol Industry

India gives immense opportunity to companies throughout its FMCG-sector, and the food and beverage market in particular shows huge potential for growth. India's food and beverage industry currently holds US$ 40.3 billion and it is expected to grow to US$ 66.3 billion by 2018, amounting to a growth of 18 per cent.

Looking at the alcohol industry, we see that the market has progressed quiet well in last few years, with many major brands entering the market. We are set to see steady growth in the coming years also. The Indian market is expected to grow by 13.2 % by 2016 for Beer Industry. This growth is an indication of the huge scope of opportunities available for breweries and beer for manufacturing and marketing in India. Many major distilleries & breweries have created a base in India, either in the form of a manufacturing unit or through distributors and importers.

The liquor industry has domestic & international players. Existence of these players in common has made the market very competitive and challenging. A broad cross section of different types of alcoholic beverages & liquor along with variety of brands provides a wholesome range to Indian consumers. Though we can say that the majority of drinkers in India prefer to go with hard liquor, beer as a drink is quite popular, and is very steadily catching up with the market leaders.

Domestic players always have an advantage over international brands when it comes to pricing but on the other hand international players offer better taste and quality products. Domestic players at present have been raising their level of quality in order to compete with new international competitors. International players have to pay relatively high customs duty for marketing their products to India, and they also have to abide by state taxes, which differ from state to other. Logistics and warehousing is also an issue for international brands, and is definitely one of the reasons why few international brands...