Indian Whiskey War

MICROECONOMICS ASSIGNMENT : INDIAN WHISKEY WAR

Prepared By:

Kamlesh Dadlani PGP10-025

Sumanth V PGP10-075

Kritika Mehrotra PGP10-027

Niyati Nagda PGP10-043

Sanil Bhatia PGP10-060

Kinnar Shah PGP10-064

Scenario

On a quiet evening on the deck of his private yacht, off the shore from his private beach in Pondicherry, Baatliwaala is sipping a Black Label, reflecting over the events that happened in the past one week. Being one of the largest players in the Whiskey industry, and being a very successful businessman, Baatliwaala was faced with a tough situation. After enjoying a large market share in the world’s second largest per capita whiskey consuming place in the world, he now faces the challenge of growing in a saturated market. Baatliwaala has to consider expanding into other territories in the country to sustain a profitable growth. He is aware of the fact that a Whiskey war is on in the country and he wants to know the avenues available to him. He has a report from one of his best consultants in his hands now and is going through it. What decision will he take? Which all markets would he expand to? Will he choose to market Indian manufactured liquor or will he consider importing foreign liquor?

As he sips his whiskey he goes through the following report...

THE INDIAN WHISKEY WAR - MARKET BEHAVIOR & OPPORTUNITIES

Key drivers for growth of liquor consumption in India

Economic expansion and increasing urbanization is driving the emergence of a larger middle class that increasingly appreciates premium goods and services, including high end spirits, and is willing to pay for it.

Income Growth

* India is one of the fastest growing economies in the world with GDP growth of

9% & 6.8% over the last two years.

* Per capita income has increased from US$ 450 in FY01 to an estimated US$ 781in FY09

* Growth in per capita income to drive discretionary...