Ravikumar Distilleries Ltd. (RKDL) IPO Price Band 56 ... - PARASRAM

Highlights
India with annual consumption of about 40 Million Cases is the 3 rd largest market in the world for Alcoholic Beverages.
Alcohol industry is among the largest source of revenue of the State Exchequer, with gross amount paid about Rs. 25,000
Crores. The Industry Net turnover is about Rs. 10,000 crores.
Indian demographics are favorable to consumption of alcohol. Alcohol consumption begins at age 16-18 in India and
peaks at 30-35. The 18-35 age groups in India is 300 Million and growing at 3.4% p.a. Coupled with growth in
purchasing power, the industry is witnessing a sustained growth of 8-10% annually.
Alcoholic beverages officially manufactured in India are categorized as BEER, Country Liquor (CL) and Indian Made
Foreign Liquor (IMFL).
IMFL production includes wines, whisky, rum, vodka, gin and brandy.
In India, country liquor and IMFL (Indian-Made Foreign Liquor) cater for two quite different sectors of the liquor market.
Country liquor is consumed in rural areas and by low income groups in urban areas. IMFL is consumed by the middle and
high income groups, primarily in urban areas.
However in the last decade cheap IMFL has been displacing country liquors, with a few states going so far as to ban the
sales of country liquor resulting in a switch to IMFL by country liquor customers.
There is stronger branding in IMFL than CL. CL is also produced illegally on large scale at individual, household and
community level.
IMFL industry is largely organized and it has growth by 12-15% in last 5 years (whereas CL industry has stagnated).
IMFL can be sub divided into Brown Spirits (Whisky, Rum & Brandy) and White Spirits (Gin & Vodka). The major
segment of IMFL include:
Source: http://www.smartinvestor.in/ RKDL RHP
Vodka has the smallest Share in overall IMFL presently but it is the fastest growing Segment. The growth rates across
various categories is as: