The Indian market for alcohol

The Indian market for alcohol Download The Indian liquor market, which is divided into various categories like IMFL (Indian-made foreign liquor), imported liquor, beer and country-made liquor, is brimming with growth. With favorable demographics, rising disposable income levels and greater acceptance of alcoholic beverages in social circles, the alcoholic beverages market in India is estimated to cross the $39 billion (over Rs 1, 75,950 crore) mark by 2014. According to a study by the firm, the sector grew at a compound annual growth rate of 12 per cent between 2004 and 2009, with the industry turnover touching $21.7 billion (over Rs 97,910 crore) in 2009. The alcohol industry is the commercial industry involved in the manufacturing, distribution, and sale of alcoholic beverages. The alcoholic beverage industry includes producers, wholesalers and distributors, point-of-sale operators (whether licensed or not) and hospitality providers such as hotels or cafés that serve alcohol. The outlook for the Indian alcoholic beverages continues to remain positive. In addition, changing consumer preference towards premium varieties of IMFL is likely to result in sales-mix gradually improve in favor of premium brands. The Indian market for alcohol — mostly spirits and beer, as well as wine — totaled $14 billion last year, and was one of the fastest-growing alcohol markets in the world. Over the next five years, the Indian market for alcohol is projected to grow at 10% a year — more than in China, the U.S. and Europe combined. Strong economic growth and rising incomes spurred liquor demand for a large part of the 2000s, with distillers enjoying volume growth of over 10% every year. Alcoholic beverages include beer, cider, ale, wine (including sparkling, barley, and rice wine) and spirits such as rum, whiskey, brandy and vodka. Almost 40% of the world’s alcoholic beverage consumption involves branded drinks that are usually large companies operating at an international level and investing heavily in marketing to promote image and encourage consumer loyalty. The global cider market is expected to exceed $2.5 billion by 2015. Growth is being driven by demand for organic products and drinks with low alcohol content. MAJOR PLAYERS Mcdowell & Co. Shaw Wallace Reckit Khaitan Mohan Breweries & Distilleries Herbertsons Jagajit Inds., Southern Agriframe Inds Mohan Meakins GM Breweries Balaji Distilleries Shaw Wallace & Co., Shri Shadi Lal Enterprises Maharashtra Distilleries Balaji Industrial MARKET GROWTH RATES 1990-91-1996-97 5.6% 1996-97-2001-02 15.1% 2001-02-2006-07 7.2% 2006-07-2011-12 12.5% 2011-12-2019-20 9.8% Sensitivity Coefficient 5.8%

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR