About Allied Blenders and Distillers Limited

Allied Blenders & Distillers Ltd. is the largest Indian-owned Indian-made foreign liquor (“IMFL”) company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022. We are one of the only four spirits companies in India with a pan-India sales and distribution footprint, and a leading exporter of IMFL, and had an estimated market share (in terms of sales volume) of 11.8% in the Indian whisky market for Fiscal 2023. Our flagship brand, Officer’s Choice Whisky was launched in 1988 with our entry into the mass premium whisky segment. Officer’s Choice Whisky has been among the top selling whisky brands globally in terms of annual sales volumes between 2016 and 2019. Over the years, we have expanded and introduced products across various categories and segments. As of December 31, 2023, our product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum and vodka. Certain of our brands, such as, Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue and ICONiQ Whisky, are ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year.

INDUSTRY OVERVIEW

Alcohol consumption is captured by World Health Organisation (“WHO”) as total alcohol per capita consumption in litres of pure alcohol per person per year and alcohol consumption in grams of pure alcohol per person per day for population above 15 years. World per capita alcohol consumption in 2023 was estimated at 6.9 litre of pure alcohol per year. The recorded alcohol per capita consumption for 2023 was estimated at 5.0 litres. India is one of the fastest growing alco-beverage consumption markets among the top economies in the world. India is one of the fastest growing alcoholic beverage markets in the world growing from a small base of 1.3 litres per capita of recorded consumption of pure alcohol in 2005 to 2.7 litres per capita consumption in 2010 and further to estimated 3.2 litres per capita consumption in 2023.

Alco-beverage industry around the world has been saddled with extra burden of regulations due to perceived effect and abuse of alcohol. Globally, countries have alcohol policies consisting of laws, rules and regulations that aim to prevent and reduce alcohol related health complications. These policies include control from production, pricing, storage and movement and final consumption of alco-beverages.

Indian alcohol beverage market is more than a billion cases in size and highly dominated by spirits. The Indian alco-beverage market crossed more than a billion cases per annum in Fiscal 2023. A volume-based analysis shows that alcohol beverage market in India was almost equally divided between Country liquor, Indian Made Foreign Liquor (“IMFL”) and beer with a small contribution from wines in Fiscal 2023. The industry is projected to reach 1,451 million cases in volume by Fiscal 2028. India’s per capita consumption is significantly lower compared to global per capital consumption. Low per capita consumption coupled with positive demographics factors and more than 13 million people added each year to the population eligible for drinking, make India an attractive market for alcoholic beverages. There exists significant potential for future growth for the alcoholic beverages market in India. IMFL is the largest segment of Indian alco-beverage market both in volume and value terms. IMFL segment recorded sales of 395 million cases in Fiscal 2023 with a growth of 8% in volume as compared to Fiscal 2022 sales at 280 million cases. IMFL market has recovered and grown to 395 million cases in Fiscal 2023 as compared to pre-COVID levels of 355 million cases in Fiscal 2020. IMFL sales volume is projected to reach 520 cases by Fiscal 2028, and sales by value is estimated was at ₹ 2,206.62 billion in Fiscal 2023. The sales value is projected to reach ₹ 3,713.39 billion by Fiscal 2028. During the period between Fiscal 2023 and Fiscal 2028, IMFL sales value and volume are expected to grow at a CAGR of 9% and 5.7% respectively. 

Indian alco-beverage sector size was estimated at ₹ 3,200 billion in Fiscal 2023 making it one of the biggest markets in the world. Indian alco-beverage market is the third largest market in the world after China and Russia. It is also the second largest spirits market in the world. Indian alco-beverage market is projected to grow at a CAGR of approximately 11.3% by value and approximately 6.1% by volume for the period between Fiscal 2023 to Fiscal 2028. Indian market is dominated by IMFL which is estimated to contribute close to 69% in value to the overall market in Fiscal 2023. IMFL is dominated by brown spirits including whisky, rum, and brandy with a small share of white spirits including vodka and gin. This is unlike world markets where white spirits are dominant.

Indian beer market is projected to reach 480 million cases by Fiscal 2028 with market dominated by strong beer. Beer category has shown consistent growth in volumes since 2005 as volume crossed 320 million cases in Fiscal 2020. Wine category in India is estimated at 3 million cases in Fiscal 2023 and projected to grow to 5.9 million cases by Fiscal 2028 with a compounded annual growth rate of approximately 14.7% by volume.

India is the largest whisky market in the world with almost one out of every second bottle of whisky sold in India. Whisky to lead growth in distilled spirits market in India. Indian whisky market is projected to reach 338 million cases by Fiscal 2028 from 210 million cases after a volume decline of close to 10% in Fiscal 2021 due COVID-19. Indian whisky market was valued at ₹ 1,508.80 million in Fiscal 2023 and is projected to reach ₹ 2,342.66 billion by Fiscal 2028.

Brandy market was valued at ₹ 315.70 billion for Fiscal 2023. It accounted for approximately 14 % of the total IMFL market by value in Fiscal 2023. Brandy is projected to grow at a CAGR of approximately 7.7% over the period of Fiscal 2023 to Fiscal 2028 by value and is expected to reach ₹ 483.50 billion by Fiscal 2028. And by volume, it accounted for approximately 20.7% of IMFL market for the same period.

The Rum segment with a market size of ₹ 210.74 billion by value in Fiscal 2023 recovered from the impact of COVID-19 in Fiscal 2021 and Fiscal 2022 and attained the pre-COVID sales levels in Fiscal 2023. The market is expected to reach ₹ 321.70 billion by Fiscal 2028 growing at a CAGR of 7.5%. Rum volume was close to 51 million cases in Fiscal 2023. It is projected to reach approximately 62 million cases in Fiscal 2028.

Wines as undistilled alco beverage contribute close to 13% to pure alcohol consumption globally but In India the contribution is approximately 0.1%. Indian wine market crossed 3 million cases in Fiscal 2023 and is projected to grow to 5.9 million cases by Fiscal 2028, thus exhibiting a CAGR of 14.7% during the forecasted period. The Indian wine market reached approximately ₹ 26.60 billion by value in Fiscal 2023 and is expected to increase to ₹ 64.25 billion by Fiscal 2028 with a CAGR of 19.3% from Fiscal 2023 to Fiscal 2028 by value.

Indian beer market is projected to reach over 480 million cases Fiscal 2028, growing with a CAGR of 8% for the period between Fiscal 2023 to Fiscal 2028. Beer has become one of the most popular alcoholic beverages in the country over the past two decaded.

Threats and Challenges to Allied Belnders, and its products and services
1. Complex interstate structure and higher excise duty
2. Competition from International and Domestic players
3. Threat from illicit or counterfeit products and trademark infringements
4. Regulations and compliance for production and retailing
5. Supply chain and distribution Challenges
6. Shift towards low alcohol content drinks or non-alcoholic beverages