Manufacturer of Indian Made Foreign Liquor in West Bengal

Manufacturer of Indian Made Foreign Liquor in India

India is one of the largest producers and consumers of spirits globally. Popularly known as a whiskey market, India is one of the largest spirits markets on the basis of volume. Though it is driven primarily by whiskey growth, other subsegments like brandy, rum, vodka and gin have also been posting steady numbers in the last few years. The country’s huge population (1.3 billion strong), rising disposable income and changing lifestyle are expected to keep the spirits demand high for the foreseeable future. Almost all of the whisky produced in India is made by blending spirit distilled from fermented molasses (similar to what we know as rum) with either grain whisky (maize, wheat, rye or barley) or pre-blended Scotch whisky; it cannot be sold in Europe as whisky

The Indian spirits industry has been growing at more than 12 percent CAGR (Compound Annual Growth Rate) for the decade starting 2001 making it one of the fastest growing markets in the world. Still, in 2019, the industry experienced significant headwinds on the back of slower economy growth.

Whiskey dominates the Indian spirits industry by a very wide margin. In 2018, whiskey’s share of the entire Indian liquor market was about 60 percent on the basis of volume. In value terms, whiskey accounted for nearly 73 percent of the value of spirits sold in the country. Other liquors such as rum, brandy, and white spirits’ share by volume in India is 14 percent, 21 percent, and 3 percent while their share by value is 10, 12 percent, and 5 percent ­respectively. Indian consumers still prefer relatively inexpensive rum and whiskey, but in case of white spirits, the consumers have a preference for a premium product.

The Indian spirits industry is segmented into IMFL (Indian Made Foreign Liquor) and IMIL (Indian Made Indian Liquor). The IMFL category accounts for almost 72 percent of the market. The states of Karnataka, Maharashtra, West Bengal, Odisha, Telangana, Delhi, Haryana, Punjab, etc. are amongst the largest consuming states for spirits in India. The most popular channel of spirits sale in India are liquor stores as its consumption is primarily an outdoor activity and supermarkets and malls are present only in the tier I and tier II cities of India. A slowdown in economy during 2019 also had an adverse impact on spirits consumption in the country. India was fraught with multiple headwinds throughout year 2019 – lingering distress in the financial services space, muted consumption and cyclical slowdown across industries.

Challenges for Indian spirits producers

The Indian market offers a number of opportunities for its domestic spirits producers. But there is a number of challenges which the India based spirits producers are facing.

The Indian spirits industry operates in a highly regulated industry with state-specific policies which impact industry volumes in some markets. Prohibitively high inter-state duties compel Indian spirits producers to set up owned or contract manufacturing set-ups in every state. Licenses are required to produce, bottle, store, distribute or retail alcoholic products. Distribution is also highly controlled, both at the wholesale and retail levels. In states with government control on pricing, price increase is based on government notifications. In states where retailing is controlled by the state government, there is a specified quota that each player can sell, capping potential to increase market share for their products. These regulations make operations restrictive for the spirits producers in India.

STSP Spirits Limited , a wholly Indian owned company , produces quality Iconic Brands with blends such as The Impression classic Superior Grain whisky, Carson Premium whisky, D&G Rare premium whisky, GenY Triple distilled vodka, Gen Y whisky, AD 79 Rum. We are one of the companies who have the license to import scotch from abroad. STSP Spirits Limited is an Indian Made Foreign Liquor company. STSP Spirits Limited was founded in 2018, and is on its journey to become one of the major spirits manufacturers in India. STSP Spirits Limited has built an aura of reputation and trust, built over decades with sincere service. Under the visionary leadership of the founder, Late Mr. Subir Ghosh, the STSP Spirits Limited achieved unparalleled success as an manufacturer of World Class Quality Grain Based Spirits, Extra Neutral Alcohol (ENA). The strong leadership of the founders and the management team has raised the bar of the STSP Spirits Limited, helping it emerge as one of the top spirits manufacturers of West Bengal , India . As an manufacturer of alcoholic beverages, STSP Spirits Limited has a steadfast presence in multiple States in India.