Tag Archives: AlcoBev Business

INDSPIRIT 2025 – CELEBRATING THE GROWTH OF ALCOBEV INDUSTRY

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•   Panel discussion on FTA seeks reduction in tariffs

•   Company of The Year is Allied Blenders & Distillers

•   Corporate Leader of the Year is Nilesh Patel of Global Beverages Group

•   Business leader of the Year is Davide Aiudi of Guala Closures India

•   Lifetime Achievement Award goes to Satpal Chaudhry who has held key positions in Mohan Meakins, United Breweries, Shaw Wallace, Empee Distilleries, Him Neel Breweries, and Khoday India.

With India’s alcobev sector showing exceptional growth, SAP Media Worldwide, the publishers of Ambrosia magazine among other publications, reached yet another milestone. On March 21 and 22, it hosted the 20th edition of INDSPIRIT 2025 at Le Meridien, Gurugram. The two-decade journey of INDSPIRIT is a highpoint, reflecting the challenges and opportunities the sector has been navigating all through. And when industry peers met to network, exchange ideas and to chill, it was truly a celebration.

INDSPIRIT is an amalgamation of conference, exhibition, networking and AMBROSIA Awards, organised by Ambrosia. This year the panel discussion was on ‘Free Trade Agreements: Gateway or Roadblock for Indian Alcobev Industry’.  The 20th edition also featured a consumer-day, to connect the industry with the end-consumer to taste the many different brands. INDSPIRIT 2025 was powered by Platinum Partner SNJ Group and supporting partners Diageo India and Pernod Ricard.

This year INDSPIRIT had an open consumer day on March 22 wherein consumers got to taste a variety of spirits. Lifting the spirits were DJ Veronika and DJ Zorin, followed by sumptuous buffet. It was day 1 of IPL 2025 cricket and SAP Media ensured that there was live coverage, adding to the zing.

Eminent Jury

The AMBROSIA awards were adjudged by an eminent panel of jury members and they included Stephen Beal (London) – Founding Sr. Consultant, Master of Whisky International Drinks Specialists; Bernhard Schafer (Germany) – A Whisky Expert, Spirit Consulting and A Master of Quaich; Ajoy Shaw – DipWSET Wine Maker & Consultant; Binod Maitin – Independent Technical Consultant; Julie Lee (Taiwan) – Industry Expert and Entrepreneur; and Katsuhiko Tanaka (Japan) – Director, Japan Import System Co.

The jury members for the Packaging category of awards were Prof. K Munshi – Industrial Design Centre, IIT Powai; Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre and Jigna Shah Oza – Communication Designer | Design Educator.

Panellists seek rationalisation of tariffs

The panel discussion was moderated by Bhavya Desai, Group Head and CEO of SAP Media Worldwide and the panellists were Suresh Menon, Secretary General of International Spirits and Wines Association of India (ISWAI); Ajay Srivastava, Founder, Global Trade Research Initiative; and Rajnish Singh of Dhvaen Law Practice and consultant on FTA to the Government.

The panellists were in consensus that tariffs on alcobev products are extremely high. Ajay Srivastava said that Donald Trump, the US President was right when he mentioned that India charged 150% tariff on alcohol-based products, followed by passenger cars, while agriculture products it ranged between 30 and 40% and industrial products between 7 and 12%. Trump, he added, was disrupting the world economy with a tariff war.

Suresh Menon said the FTA negotiations were ongoing with the UK and the position of ISWAI members has been that there should be a reduction in tariff on spirits in whatever form they were imported – either bulk or bottled. There was unwanted fear that there would be dumping by cheap Scotch whisky and that would disrupt the domestic market, he said and added that with the trend of premiumisation, this was unlikely to happen. Rajnish Singh advocated a threshold level of tariffs as to bar cheaper products from entering into the country, thus in a way protecting the domestic industry which has been investing substantially in the sector. He referred to the Economic Cooperation and Trade Agreement with Australia which has a threshold level to ensure that cheap wines are not dumped in the Indian market.

The panellists also referred to the Scotch Whisky Association which since 1915, stated that to be called Scotch Whisky, the spirit has to be aged no less than 3 years, malt or grain – replacing the old early 1900s limit of 2 years. The panellists opined that as the rule on 3 year maturation is not going to change and that Indian whisky manufacturers who wanted to export had to keep this in mind, even though the whiskies in India matured faster due to the hot climate.

India third largest alcobev market

Bhavya Desai talked about how India is the third largest alcobev market and was valued at over 52 billion dollars in 2024 and expected to touch 64 billion dollars by 2028, growing at a CAGR of 6.8%.

The panel discussion was followed by the much-awaited AMBROSIA Awards. In his opening address before the awards, the Managing Director and Publisher of SAP Media Worldwide, Trilok Desai said, “Despite operating in a highly regulated environment, the industry is witnessing remarkable growth. But with this growth comes a sense of uncertainty. Domestic players are increasingly concerned about the impact of reduced tariffs on Bourbon and the potential phased reduction on Scotch. The worry isn’t limited to premium Scotch—it extends to more affordable Bourbons and Tennessee whiskies, which could directly challenge mid-range IMFL brands.”

Global alcobev giants dominate

Desai added, “Currently, the Indian alcobev market stands at around 410 million cases, growing at a modest rate of 5%. The beer market is slightly larger at approximately 425 million cases, with a healthy growth rate of 8% to 10%, while the country liquor market is around 250 million cases. The world’s top nine alcobev companies operating in India hold a market share of over 52% by value and 43% by volume of the total Indian alcobev market.

Global alcobev giants operating in India bring deep experience from multiple international markets, significantly contributing to the industry’s growth. However, we shouldn’t overlook our own strengths. Indian companies are producing exceptional IMFL products, world-class single malts, and premium gins, along with competitive, high-quality beers that stand toe-to-toe with international brands. That’s something Indians should be incredibly proud of.”

Success of Indian single malts

Referring to the success of Indian single malts on the global map, Desai mentioned how they are inspiring even multinational companies to invest in producing premium spirits within India. “Many are now not only crafting outstanding single malts here, but also looking to export them globally — a true testament to the growing stature of Indian spirits.”

Talking about the AMBROSIA Awards, Desai said, “They are not just about recognition—they’re a celebration of the hard work, creativity, and dedication that have driven the industry forward over the past year.

Tonight, we honour excellence—from outstanding products and innovative packaging to groundbreaking marketing strategies. Over the past 30 years, Ambrosia has witnessed the transformation of the alcobev industry. What was once a market dominated by a few players has become a vibrant and competitive landscape, with Indian and multinational companies alike driving innovation and quality.”

He said that the AMBROSIA Awards have stood for excellence for three decades, thanks to a rigorous and unbiased judging process. “Each year, we assemble an international jury whose expertise ensures that only the very best are recognised. Their insights have highlighted significant improvements in product quality across various categories. Beyond the products, the jury has also acknowledged the remarkable advancements in packaging and design. From labels and bottle shapes to overall presentation, Indian brands are not just meeting global standards—they are often exceeding them.”

Ambrosia launches ASEAN Edition

Desai talked about Ambrosia magazine which has completed 33 years of successful publishing and in 2024 the ASEAN Edition of Ambrosia was launched. The ASEAN edition, launched from Singapore is being circulated across nine ASEAN countries—making Ambrosia the world’s largest combined circulated alcobev magazine. But we’re not stopping there. We’re also exploring the possibility of hosting an international exhibition and awards in Singapore—a significant milestone for the brand.

After Desai’s speech, the AMBROSIA Awards were presented by Air Marshal (Retd) Anil Chopra, a highly decorated officer of the Indian Air Force.

Quick recap of the Ambrosia Awards 2025

Amrut Distilleries, Expanding Capacity and Eyeing Partnership in the Long Term

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In a podcast conversation with Bhavya Desai, Rakshit Jagdale, Managing Director of Amrut Distilleries, has spoken at length about the company’s expansion plans and the journey of how a practical project during his MBA days in the UK led to the first-ever launch of an Indian Single Malt whisky, charting a path which many others have followed subsequently, making India proud of its strides in the alcobev sector.

engaluru-based Amrut Distilleries, the firm that put Indian Single Malt whisky on the global map, is in an expansion mode. Beginning April 2025, Amrut Distilleries is adding 35% more to its distillation capacity, taking it from 900,000 litres to about 1.4 million litres, according to its Managing Director, Rakshit Jagdale. It was only in 2018, the company had trebled its distillation capacity.

`1,000 crores net sales target

Amrut Distilleries’ current business in volume terms is over 6.3 million cases per annum with turnover at ₹540 crores net sales, gross sales being ₹1,750 crores. “The projections are to touch ₹1,000 crores net sales in about 10 years’ time, growing at 10 to 15%. We are quite confident, we will sustain. For us bottom line is important. We can chase turnover with economy, but we want to have strong EBITDA. There is scope for luxury and premium segment to grow further and strengthen the bottom line.”

Dilution of stake

Asked whether the closely-held family concern would be diluting its stake, Jagdale said, “There has been a lot of interest in our group over the past six to seven years. We have had discussions at the family board level, but we have not taken that call yet. We cannot shy away for too long. We are looking at a partner who will add value to the brand and also give global market accessibility, if at all we go that way.” IPO (initial public offering) is another route which the company is looking at it from a long- term perspective. “We are not there as yet. I personally feel, it will be a couple of years more, before we take that call.”

Meanwhile, Amrut Distilleries is also exploring avenues to set up a new distillery to cater to the bulk market. “We are seriously looking at the bulk side, impending the Free Trade Agreement (FTA) with the United Kingdom.”

FTA and its impact

On whether there would be a downward revision in the prices of premium whisky in India, post FTA, Jagdale said, “It is certainly round the corner and it will post a fair bit of challenges. Brands like Glenfiddich, coming down from their current levels, will affect. We don’t know what is going to be their strategy, but they will put pressure on us to come down by ₹500 to ₹1,000 from what we are selling at currently. The bottomline will get compromised but we should stay put.” The shelves will have Indian single malts and BIO (bottled in origin) Scotch and consumer preferences around that point of time has to be factored in. “We have to wait and see.”

Weary of unhealthy competition

Stating that the Indian market offered massive opportunities, Jagdale mentioned, “Everybody wants to be in India now. They want to jump on Indian single malt bandwagon. They are serious and we are serious too on what we are doing.” Diageo has launched Godawan Indian single malt whisky, Pernod Ricard is setting up a single malt distillery and there are a host of Indian distillers, about five to seven of them, who will hit the market in the next two to three years. There is Ian Macleod coming. “Competition is most welcome and it keeps you on your toes, improves processes quickly and rapidly. Just hope that it doesn’t go the path of unhealthy competition.”

Amrut’s market focus

Giving details of its market bifurcation, Jagdale stated, “This year, of our total business is 95% domestic and 5% export market. Within the luxury division, we are 35% export and the rest domestic. “In the premium range, we have MaQintosh Premium whisky, Silver Edition whisky, Two Indies Rum, and Nilgiris Dry gin. The mass market category includes Amrut XXX rum, Prestige whisky, Silver Cup brandy. From a volume point of view, we would be 70% economy and from topline point of view 25% would be luxury and 10% would semi-premium and premium categories.”

Pain Points,
Excise Tops the List

Talking about excise duties, Jagdale said, “We are a highly regulated industry. Time has come to deregulate it. We are still following laws enacted by the British, while we have technology. There is a massive trust deficit between the government and the alcobev industry, hoping that the perception the governments have about the industry changes. Hopefully, it will have happen in my lifetime, would like to see that happen.” Agreeing that presently the governments are willing to listen to the industry and amend rules, he said, “there is hope.”

South Heavily Taxed

Jagdale stated that the southern states are highly taxed. “If you look at Punjab, Haryana and other northern states, the taxes are not as high as here. For instance, if the MRP (maximum retail price) is ₹100, the manufacturer gets roughly about ₹11, the retailer gets ₹9, the rest goes to the government. Agreed that the government has its own compulsions of running welfare programmes and other schemes, we appreciate that, but there has to be a balance going forward.” The governments, unlike earlier days are now open to dialogue which can only get positive, he hoped.

Is alcobev profitable business?

Quizzed about whether the alcobev sector is a profitable business, considering that it highly regulated, Jagdale’s advice is “Get into the premium and luxury segment. It is not worth to be in the mass market. You may achieve volumes in a couple of years, but you are not going to make any money. It takes minimum of four years, one should have the patience and the ability to invest for that long a time.”

His guestimate is that a 1000 litre per day plant will require a minimum capex investment of ₹25 crores and there would be working capital. “There is no guarantee that it will succeed in four years’ time. One should have the patience.” The route budding entrepreneurs could take is getting in gin manufacturing or matured rum category or vodka at the premium end. “Then you can pick up white, brown and dark spirits.”

The consumer of today

Emphasising the need to go premium, Jagdale explained that the present day consumer is highly discerning. “Globally we see a lot of youngsters have taken up to single malt whisky in a very big way, especially in the US, India, Europe. One thing we have observed with the advent of internet, is that the knowledge levels of the consumer has gone up significantly. Youngsters know more about whisky and other spirits much more. This keeps us on our toes. The consumer profile has changed. The younger generation is willing to spend more, drink better, drink less as they are health conscious too.”