Latest news with #SanjitPadhi
Mint
09-07-2025
- Business
- Mint
‘In 2024, India alcobev mkt crossed 408 mn cases, and should grow 5% this yr as reforms, premiumisation up consumption'
NEW DELHI : India's alcoholic beverage (alcobev) industry crossed 408 million cases in 2024, with premium spirits driving growth in an increasingly reform-friendly regulatory environment. New data accessed exclusively byMint shows that structural changes—particularly at the state level—are poised to push this figure even higher in 2025, with a projected growth of over 5%. The International Spirits & Wines Association of India (ISWAI), which represents global players like Bacardi, Diageo-United Spirits, and Campari, said India remains one of the largest liquor markets globally, with the sector growing at a steady 3% CAGR. "Calendar year 2025 should top last year's perform and a slightly higher growth rate at around 5% or more on the back of structural reforms in large markets such as Uttar Pradesh (which has increased its retail store density), Andhra Pradesh (which has encouraged privatisation of retail) and stability in policies such Rajasthan (four year excise policy) and Haryana (with one that's increased from 12 to 21 months)," said Sanjit Padhi, the body's CEO, speaking toMint. 'In addition, smaller markets like Jharkhand are moving towards privatisation, which should also help." Also Read: Rishabh Pant somersaults his way back into brands' hearts In the first six months of the year, markets like Uttar Pradesh, Andhra Pradesh and Rajasthan are showing strong growth as well, the body's top executive said. This is because there are new restructured excise regimes to attract investments in some of these states. The first half of 2025 has already shown strong growth in states with restructured excise policies. For example, UP's merging of its beer and liquor retail networks has increased access, while Rajasthan's switch to a four-year policy has led to a 55% rise in Indian Made Foreign Liquor (IMFL) volumes. In Andhra Pradesh, modernised liquor outlets are expanding into tier II and III towns. 'The outlook for 2025 is quite positive," Padhi said, adding that better retail infrastructure is enhancing consumer experience. Fast-paced growth According to industry estimates, India's alcobev market has been growing at about 3-4% year on year for the last decade in terms of volumes, and it was valued at $59.85 billion in 2023. While he did not share absolute numbers in terms of its current value, what is also driving growth is that each year, Padhi said, is the 15-20 million people entering the country's legal drinking age, giving the country one of the fastest-growing consumer bases globally. "The country's median age is under 30, and younger consumers are seeking more variety, brand trust and better experiences—even if they are drinking a little less frequently. India's population is now the largest in the world, and while price sensitivity remains in many parts of the country, there is clear movement—especially in urban areas—toward better-quality beverages, driven by a younger, more aspirational consumer," he added. 'Premiumisation at every level' The growing popularity of Indian single malts and high-quality blended whiskies is also pushing up demand for premium products. At present, imported spirits still make up a small share—just 2.6% of total volumes—but they are gaining ground. Bulk Scotch imports now account for 79% of all Scotch brought into India, with most being bottled locally. This has helped reduce costs and improve margins. 'Rising private investments, a growing middle class, and increasing workforce participation are all contributing to greater consumer spending power," Padhi said. Paul P. John, chairman of John Distilleries, toldMintthat while the Indian consumer has been price-sensitive, there's a visible evolution in how quality is perceived today, and the mindset shift to spend on better quality spirits is increasing. "Earlier, quality was almost exclusively associated with high-priced or imported brands, but that mindset is also shifting. Consumers are now recognising that world-class quality can also come from homegrown brands, and they're willing to pay a premium when they see genuine value," he said. Also Read: Ventive Hospitality to open six hotels with Marriott in India by 2030 He said this shift has been pivotal to the growing success of John Distilleries' premium offerings, especially in the single malts segment, which are crafted in India but consumed globally. According to ISWAI's data, India sold 11 million cases out of 408 million sold in 2024 in the deluxe and super premium deluxe categories. According to the top industry players, companies are also moving up the value chain. Amar Sinha, chief operating officer at Radico Khaitan, speaking toMint, said many large national alcohol companies are moving away from low-MRP (maximum retail price) mass brands due to shrinking margins. Demand for quality 'This is primarily because input costs have gone up, and there are fewer margins at the lower end of the segment. Manufacturers are moving towards the upper end of the consumer bracket. The consumer is also getting exposed to better quality products now, vis-à-vis some years ago. Consumers are moving a few steps up. The growth in the deluxe and premium segments is here to stay, and lower-MRP products will start to fade," Sinha toldMint. "If this segment, while small right now, will grow at 15-20% CAGR, then we expect it to double in five years," he added. In 2024, super-premium Indian-Made Foreign Liquor grew 23% in 2024, while premium IMFL grew 18%, and growth in the larger, older deluxe segment slowed to 6%. 'Premiumisation may seem small when viewed in isolation, but its impact goes beyond just the volumes. Also Read: India's luxury knockoff boom just got a legal reality check For states looking to de-emphasise their focus on alcohol, upward category movement will still drive higher revenues than regular categories, even if overall consumption stays flat. This is because consumers are moving up the value chain and drinking better in each category," said Padhi. Also, this is due to discretionary income growing, too. Despite rising interest in global brands, locally produced spirits continue to dominate, accounting for over 97% of total sales in 2024. However, imported spirits—both bottled at origin and those bottled in India—grew 8.3% year-on-year, compared to 3.2% for domestic brands, pointing to rising interest among affluent urban consumers.
South China Morning Post
19-06-2025
- Business
- South China Morning Post
UK Scotch whisky makers cheer news of FTA with India, eye expansion
Global Scotch whisky producers are eagerly eyeing India after New Delhi and London concluded their long-awaited free trade agreement (FTA), as lower tariffs are set to propel sales in the world's largest market for the popular alcoholic drink. Finalised last month, the deal will lead to India halving its levy on British whiskies and gin from 150 per cent to 75 per cent starting from the middle of next year, and reducing it further to 40 per cent over a 10-year period. While this could make imported Scotch whiskies much more accessible to Indian consumers, analysts and industry insiders say foreign distillers will still face stiff competition from increasingly sophisticated domestic brands. India currently accounts for just three per cent of global Scotch whisky sales by volume, despite being the top export destination for the product. The UK is India's largest whisky trading partner both in value and volume terms, according to Indian government data. 'India's alcoholic drinks market is at a crossroads, combining strong demand for home-grown products and rising interest in high-quality imported premium products,' said Sanjit Padhi, chief executive of the International Spirits and Wines Association of India. The new FTA could expand consumer choices, enhance quality benchmarks, and create a level-playing field benefitting domestic and international players, Padhi said.
Time of India
05-05-2025
- Business
- Time of India
Why beer in Goa costs you Rs 100 but Rs 305 in Karnataka, Rs 229 in Telangana?
A bottle of alcohol priced at Rs 100 in Goa can cost as much as Rs 305 in neighbouring Karnataka, Rs 229 in Telangana, and Rs 205 in Rajasthan—highlighting the stark disparity in liquor prices across states due to varying excise duties and taxes, reported TOI. Despite a marginal increase in recent years, Goa continues to levy the lowest excise duty at 55 per cent , while Karnataka imposes the highest at 80 per cent , according to the International Spirits & Wine Association of India. This wide gap in taxation has a noticeable impact on retail prices. For instance, a bottle of Black Label whisky costs Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and nearly Rs 5,200 in Karnataka. Industry experts argue that such inconsistencies undermine the 'one nation, one tax' vision. Yet, state finance ministers have shown little inclination to address the issue, even as high-tax states lose revenue to bootlegging and illicit trade, according to a TOI report. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants told TOI . Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy told TOI.>
Time of India
05-05-2025
- Business
- Time of India
Why beer in Goa costs you Rs 100 but Rs 305 in Karnataka, Rs 229 in Telangana?
A bottle of alcohol priced at Rs 100 in Goa can cost as much as Rs 305 in neighbouring Karnataka, Rs 229 in Telangana, and Rs 205 in Rajasthan—highlighting the stark disparity in liquor prices across states due to varying excise duties and taxes, reported TOI. #Pahalgam Terrorist Attack Inside Operation Tupac: Pakistan's secret project to burn Kashmir Who is Asim Munir, the Zia-style general shaping Pakistan's faith-driven military revival 'Looking for partners, not preachers': India's strong message for EU amid LoC tensions Despite a marginal increase in recent years, Goa continues to levy the lowest excise duty at 55%, while Karnataka imposes the highest at 80%, according to the International Spirits & Wine Association of India. This wide gap in taxation has a noticeable impact on retail prices. For instance, a bottle of Black Label whisky costs Rs 3,310 in Delhi, Rs 4,200 in Mumbai, and nearly Rs 5,200 in Karnataka. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pakistan: Jewelry On Sale For Half Price! (See Price List) Luxury Jewelry | search ads Undo Industry experts argue that such inconsistencies undermine the 'one nation, one tax' vision. Yet, state finance ministers have shown little inclination to address the issue, even as high-tax states lose revenue to bootlegging and illicit trade, according to a TOI report. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. Live Events "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants told TOI . Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy told TOI.
Time of India
04-05-2025
- Business
- Time of India
Rs100 in Goa & Rs305 in Karnataka, excise duty difference defeats spirit of '1 nation, 1 tax'
This is a representational AI image (Pic credit: Lexica) NEW DELHI: A bottle of alcohol that costs Rs 100 in Goa will set you back by Rs 305 in neighbouring Karnataka, Rs 229 in Telangana and Rs 205 in Rajasthan. The massive price variation is due to the different levels of excise duty and other taxes that states levy, with the trend of Goa having the lowest levies remaining unchanged. If anything, taxes in Goa have inched up compared to a few years ago. Goa levies the lowest excise of 55%, while the tax rises 80% in Karnataka, the highest in the country, according to data compiled by International Spirits & Wine Association of India. As a result, a bottle of popular Black Label whisky costs Rs 3,310 a bottle in Delhi, Rs 4,200 in Mumbai and around Rs 5,200 in Karnataka. The difference in duties defeats the 'one nation, one tax' principle, with finance ministers making no effort to correct the situation, amid calls from industry to rationalise taxes. It also results in states with higher taxes losing revenue to bootlegging. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Want Lower Bills Without Changing a Thing? elecTrick - Save upto 80% on Power Bill Learn More Undo FMs reluctant to give up taxation powers For instance, individuals in Delhi often hop across to Haryana to purchase alcohol as is the case in Tamil Nadu, where many people purchase liquor from Puducherry. With excise on liquor and VAT on petrol and diesel being the only major sources of revenue for states after the introduction of goods and services tax, finance ministers are reluctant to give up further taxation powers, especially in a season of freebies, when the tax is used to bridge the deficit. "While we recognise that the states have to augment their revenues, there is a need to build a sustainable model which focuses on stability and allows consumers to uptrade through premiumisation. This can be achieved through tax rationalisation and creating a pricing ladder that allows consumers to uptrade, thereby building the ethos of drink less, drink better. We have seen revenue growth in the past in states like Maharashtra and Karnataka, where price correction through tax rationalisation has helped in incremental revenue growth that is sustainable," said Sanjit Padhi, CEO, ISWAI, the industry lobby representing global giants. Rival body Confederation of Indian Alcoholic Beverage Industry too has said that different tax levels across states is a big challenge for the industry. "There is no cohesive strategy for the Indian alcoholic beverage industry. The industry needs a uniform taxation mechanism which will propel the growth," CIABC's Deepak Roy said recently.
