India is the third largest global spirits market by volume in the world,
just behind China and Russia. It is also one of the fastest growing markets
in the world. The domestic alcohol industry has recognized that the young
people and women are the key target populations for them and they are
assertively focusing on these vulnerable groups through their marketing
campaigns.

India is one of the world‘s most restrictive places for trade and doing
business. In 2014, it is ranked 110 out of 152 countries, in terms of
economic freedom, by the Economic Freedom of the World Report. Its Freedom
to Trade Index was 6.2 (highest score 10.0), 124 Doing business in India
remains difficult for both foreign and domestic companies. The country was
ranked 133 out of 152 countries by the World Bank this year in its Doing
Business Score. Many studies have indicated trade barriers continue to be a
major hindrance to India‘s development and prosperity, making trade
liberalization and further deregulation critical to its economy.

The industry is consistently launching new products, such as flavoured
alcoholic drinks, to attract the nondrinkers in this group.The availability
of alcohol is increasing in India; there are more outlets in shopping malls
and popular market places, which make it easily accessible. In some states,
certain alcoholic beverages like wine and beer can be sold in supermarkets
that further increase the availability. Increase in physical availability of
alcohol leads to rise in alcohol consumption and alcohol related harm.
Intensive engagement of the alcohol industry is observed in social
initiatives and policy related activities under the broad framework of
corporate social responsibility (CSR), which now-a-days are part of a more
general strategy that is designed to further the industry’s political and
economic interests.

The Indian alcohol industry is a high-risk industry, on account of the high
taxes and innumerable regulations governing it. The international liquor
industry, the Indian one too has seen players with strong brands;
diversified portfolios and large operations achieve market leadership
positions. The Indian liquor industry comprises the IMFL, country liquor,
foreign liquor bottled in origin (BIO), illicit alcohol, beer and wine
segments.

Indian made foreign liquor:

The maximum permissible limit for alcohol content in spirits is 42.8 per
cent v/v (volume to volume). The overall IMFL market is increasing at the
rate of 9 to 10 per cent annually. There is a tremendous growth in the vodka
market. It is the fastest growing among all types of liquors. Vodka
consumption has been growing at the rate of about 44 per cent over the past
few years.

Country liquor:

The average alcohol content in country liquor is 33 per cent volume to
volume. It is produced in local licensed distilleries and is made of cheap
raw material, primarily rectified spirits of grains or molasses. In the
southern states coconut and other palms are used as raw materials in the
production of local liquor. It is called as arrack, desi sharaab, daru,
tharra, toddy, fenny and tari. The production cost for country liquor is
low; the excise duties are also lower than they are for other liquor. The
idea behind country liquor was to provide cheap alcohol and thus check the
illicit trade of alcohol.

Beer:

Beer has become a popular beverage in the country only over the last two
decades. It’s growing at a rate of about 17 per cent per year. In India,
beer is manufactured in licensed breweries and there are more than 60 beer
brands available in the market. The growth in the beer market appears to be
driven by young consumers and professionals who consider beer a trendy
drink, as compared with traditional spirits. There is also a small demand
for foreign beer in the up market urban areas. The highest levels of beer
consumption in India are observed in the southern states.

Foreign liquor bottled in origin (BIO):

Imported liquor forms a very small part of alcohol consumption in India. It
is usually consumed by the rich and upper middle class in metropolitan
cities. It is also subjected to customs duty, making it much more expensive.
The imported spirits market in India is growing at the rate of 25 per cent
annually.

Wine:

Wine is an alcoholic beverage made from fermented fruit juice, usually that
of grapes. Wines made from other fruits are usually named after the fruit
from which they are produced (for example, apple wine or elderberry wine)
and are generically called fruit wine. The term “wine” can also refer to the
higher alcohol content of starch-fermented or fortified beverages such as
barley wine, sake, and ginger wine.

The alcohol industry is very important for the government. It generates an
estimated Rs. 18,000 crore per annum in spite of the fact that the per
capita consumption of liquor in India is the lowest in the world. The total
liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a third of
the total liquor consumption in India. Most IMFLs are cheap and are priced
below Rs. 300 per bottle.

Alcohol sales proceeds account for 45% of the total revenue collection in
the country. Whiskey accounts for 60% of the liquor sales while rum; brandy
any vodka account for 17% 18% and 6% respectively. MNC’s share is only
10%and they have been successful only in the premium and super premium
ranges. Post WTO the government may have opened India to foreign
distilleries, but the duty has been increased from 222% to 464-706%.This is
due to the fact that there is a 100% customs duty, 150%contravening duty,
local taxes, distributor’s margin, retailer’s margin and publicity charges.
The cost is finally borne by the consumer. Though the government claims that
this is being done to protect the domestic liquor industry, the domestic
industry accounts for 99% of the market share.

This protectionist policy could prove to be counterproductive and lead to
smuggling. As of now, only 45% of the sales are through legal channels and
only 25% of this is duty paid for. Within India itself, the policy of
alcohol retail differs form state to state. While some states like
Maharashtra. Uttar Pradesh, and Tamil- Nadu have a liberal policy, come
states like Haryana and Andhra

Indian Liquor Industry is divided into two broad categories

• Indian Made Foreign Liquor (IMFL)?
• Country Made Liquor

Indian Liquor Industry is growing at 12-15% P.A over last 2 yrs.

• Shift from country liquor to IMFL because of rising per capita.

Industry Structure Alcoholic beverages (8500 Crore) IMFL Country Liquor Rs
6150 Crore Rs 2350 Crore Brown Spirits White Spirits Licensed Illicit Whisky
Vodka Brandy Gin Rum

Major Competitors Manufacturer Brands United Breweries (UB) Group
(Bangalore) King Fisher, Kalyani Black Label, Signature, Blue Riband Shaw
Wallace (Calcutta) Haywards Jagajit Industries (Kapurthala, Punjab)
Aristocrat Mohan Meakins (Solan, Himachal Pradesh) Golden Eagle Associated
Breweries & Distilleries (Mumbai) London Pilsner, Smirnoff, Gilbeys Green
Label, Malibu, Archers Peach Schnapps

Legal Environment

• Ban on direct advertising Excise regulations and Licenses

• Regulated industry - movement, prices of intermediate goods
(molasses, ethanol) tightly controlled - state governments exert
considerable influence.

• Subject to licensing under Industrial (Development and Regulation)
Act, 1956

• Cap on licensed capacity; special license for expansion

• Plethora of duties and taxes from bottling to sales stage; varying
from state to state.

Custom & Duties

• Sales tax, Bottling Fee, Litre Fee, Vend Fee, Privilege Fee, Import/
export Pass duty

• Other taxes levied are: Excise Duty : Liquor from spirits - Rs. 45/-
bulk litre; Premium Malt Whisky - Rs. 60/- bulk/ litre; Litre Fee - Rs.
20/- bulk litre; Sales tax : 60%; cess 5%

• Import duty on whisky, rum, gin & vodka, liqueur - 230 %
www.crisil.com

Social Environment

• Increase in disposable income

• Changing lifestyles of middle class

Western culture influence

• Changing Trends – Youngsters, Parties and Celebrations Hard liquor -
from 21 to 25

• In India 40-50 % of all males and 1% of all females Beer - from 18
to 21 Minimum age consumed alcohol last yr.

• 62% drinkers classified as light, 29% as moderate drinkers and 9% as
hard drinker.

Prohibition in India

Soon after independence, prohibition was imposed in the erstwhile state of
Bombay.

• The first large-scale movement against alcohol began in the 1970s,
when rural women in various parts of the country protested against the sale
of liquor in their villages.

• Information and Broadcasting ministry of India banned the ads.

• Even after the ban, liquor companies continued to advertise their
drinks in the form of surrogate advertisements.

Legitimate business & their surrogate advertisements Brands Surrogate
advertisements McDowell’s malt whisky McDowell’s Soda/water Radico Khaitan’s
8 pm whisky Radico Khaitan’s water Hayward’s 5000 Beer Hayward’s water/soda
Derby Special Derby special soda Bacardi Liquor Bacardi Blast CDs &
Cassettes Bagpiper liquor Bagpipers soda and cassettes Kingfisher Beer
Kingfisher bottled drinking water Royal Challenger whisky Royal Challenger
golf accessories & mineral water & cricket team White Mischief Liquor White
Mischief holidays Smirnoff Vodka Smirnoff cassettes & CDs

Threat of New Entrants

• There are huge complexities and high regulations to get entry in
this industry. The new players need to satisfy the licensing and need to get
approvals by the states and central government.

• For international players, the key is find the right partners and
links who understand the Indian market and legislations. With liquor makers,
both local and foreign, becoming active, competition is intense.

• UB-Carlsberg, South African Breweries and some others are awaiting
clearance following government stalemate on account of the Supreme Court
judgment, the judgment has created a confusion whether the proposals related
to FDIs and the issuing of licenses for the liquor industry will be
addressed by the Central or the State governments.

A lot of mergers and acquisitions in the international arena have begun to
impact the joint ventures.

Bargaining Power of Customers

• The Liquor industry has witnessed the consumers always at a weaker
end.

• There is not much bargaining power in the hands of the consumers in
Indian liquor industry as the prices are set by the forces of demand &
supply and the demand for liquor here is high as compared to the supply.

• Hence, the producers are at a beneficiary end and charge higher
prices.

• In India, a liquor brand is identified and is appreciated only on
the basis of its higher price.

• It is an interesting fact that Companies use “High Price” as one of
its promotional strategy to attract the consumers.

Bargaining Power of suppliers

• The key raw material for IMFL players is Molasses which is a
byproduct of sugar. Molasses is distilled & processed to form rectified
spirit called Ethanol.

• The players which have primary distillation facilities in their
Plants directly consume molasses, rest all have to purchase Ethanol.

• As molasses demand arises only from ethanol demand, the demand
supply scenario for ethanol determines the raw material prices for the IMFL
Players.

• Ethanol demand is expected to rise in future, when the commercial
blending of ethanol with petrol (for producing Gasohol) will take off.

• In Long term -Molasses supply is going to increase as more sugar
manufacturers are expected to set up primary distilling facilities and as
new sugar factories are expected to come up in the form of integrated plants
with cogeneration & distilling facilities

• The suppliers are able to play easily with the prices of these raw
materials hence charging higher prices from the Liquor producers.

Predictions regarding Raw Materials

• It is predicted by the analysts that after the commercial production
of “Gasohol” the prices of Molasses is likely to increase.

Rivalry within the industry & their Market Share The top five competitors in
Liquor industry are: United Breweries (UB) Group (Bangalore) 48% Shaw
Wallace (Calcutta) 36% Jagjit Industries (Kapurthala, Punjab) 6 % Mohan
Meakins (Solan, Himachal Pradesh) 5.5% Associated Breweries & Distilleries
(Mumbai) 4.5%.

Rivalry

• Major players create competition on the basis of: – Looks of the
liquor bottle – Pricing the product much higher – Innovative promotional
campaign

• Beer sales in India are forecasted to grow at CAGR of 17.2 % in near
future.

• Future plans for the industry depicts strong growth for the Indian
beer market as the major players like kingfisher have been quoted saying
that they have significant expansion plans for the next few years.

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The Indian beer market shrunk during the FY 20. As per our estimate, a number of markets across the country remained sluggish during the second half of last Financial Year. April and May 2019 saw General Elections in India in a phased manner in each State, where dry days were imposed for a few days before and after elections and during election results which had reduced sales. Restrictions on production during this period also curtailed our ability to service market demand. Generally, high-end consumer prices dampened sales during the year.
In addition, due to COVID, retail was completely shut from March 23, 2020 with on-trade outlets being progressive closed in the weeks prior, causing a secular drop in sales for beer and spirits. The last 8 days of March 2020, when normally increased primary dispatches’ happen due to start of the peak season, such dispatches actually became negligible due to lockdown.

It is expected that the initial months of the new financial year will remain very challenging as retail only reopened in many states in India during 1st week of May. Demand is likely to only gradually recover and is negatively impacted due to increased taxation and other impediments. On basis of alcohol content, beer in India can be categorized into Strong and Mild Beers. Strong beer which has an alcohol content between 6% and 8% dominates the beer market accounting for over 85% of the total beer consumed in India.

The Super Premium beer segment within both the Strong and Mild beer categories has been growing faster than the overall beer industry and has grown at a Compounded Annual Growth Rate (CAGR) of almost 30 per cent over the last three years.

The Indian beer market continues to grow in line with expectations. Industry volumes grew wat a CAGR of about 7% during the last five years. However, during 2019-20, the Indian beer market shrunk slightly over the previous year, in part related to COVID. Compared to the global average per capita consumption of about 30 liters, the per capita consumption in India still hovers around 2 litres1 . However, the scope for growth in India continues to remain positive given the climate, young demographics and increasing disposable income.

Beer has become one of the most popular alcoholic beverages in the country over the past two decades. A plethora of beer brands are available in India to address the palate of various consumer segments. Majority of beer market growth is driven by young consumers, who consider beer a trendy drink, compared to traditional spirits. Brew pubs have emerged in large cities such as Bengaluru, Pune and Gurgaon over the last few years.
These outlets have introduced consumers to new types of beers for example ‘craft beer’. beer Industry in India continues to remain traditional and is controlled by State Governments. It remains highly regulated with high taxation, restrictions on cross border movements, constraints on production, retailing and other barriers. In many parts of the country, wholesale and/or retail distribution is controlled by State Government monopolies. Also, in over 60% of the markets, State Governments directly dictate the price at which beer can be sold.

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The post BEER (BREWERY) PLANT appeared first on EIRI - eBooks and Project Reports.

Banana beer is made from bananas, mixed with a cereal flour (often sorghum flour) and fermented to an orange, alcoholic beverage. It is sweet and slightly hazy with a shelf life of several days under correct storage conditions. There are many variations in how the beer is made. For instance, Urwaga banana beer in Kenya is made from bananas and sorghum or millet and Lubisi is made from bananas and sorghum.

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Domestic Industry

However, the Rs. 60.0 Billion organized beer and liquor industry has been growing at an impressive rate. In sharp contrast to the trend the world over, beer is losing ground to hard liquor in India. Amidst beers, the current trend is that lager beer is giving way to strong beer. Even as the liquor manufacturers could hope to garner the people who are shifting from beer to liquor, there is a vast country liquor market and a sizable grey market to contend with.

United Breweries (UB), Shaw Wallace and McDowell (part of the UB Group) presently dominate the liquor and beer market. The market on its part is set to undergo a sea change with the arrival of MNCs. The removal of quantitative restrictions (QRs) on the import of bottled alcoholic beverages only makes the competition tougher.

Among the alcoholic drinks, Beer is quite common and popular in almost every Country of the World. People of different Countries take beer in varying much like a soft drink in European Countries it is just a substitute of water. The alcoholic contents and main source stuff also keep varying according to the tests  of the major part of population of the particular country although it is a fashion to ask for beer of every origin in every country.

•    INTRODUCTION
•    MARKET SURVEY
•    BEER GOES ON PASSAGE TO INDIA
•    FORMALITIES FOR SETTING UP BEER INDUSTRY
•    MANUFACTURERS OF BEER
•    LICENSING PROCEDURES
•    QUALITY IN FREE TRADE ZONES
•    MANUFACTURING PROCESS
•    PHASES IN ENZYMATIC BREAKDOWN OF PROTEIN
•    PROCESS FLOW SHEET FOR BEER
•    PLANT LAYOUT OF BEER
•    PLANT LAYOUT  BARLEY MILLING SECTION
•    YEAST TANK, WASH TANK
•    PLANT LAYOUT OF PROCESS SECTION
•    FERMENTATION SECTION
•    PLANT LAY OUT OF THE FILLING SECTION AND COLD STORE
•    TURNKEY CONSULTANT FOR SETTING UP BEER PLANT
•    IMPORTED BEER MANUFACTURING PLANT AND EQUIPMENTS
•    COMPLETE PLANT SUPPLIERS FOR BEER PLANT
•    RAW MATERIALS SUPPLIERS
•    SUPPLIERS OF HOPS
•    LIST OF PLANT AND MACHINERY

APPENDIX – A :

1.      COST OF PLANT ECONOMICS
2.      LAND & BUILDING
3.      PLANT AND MACHINERY
4.      FIXED CAPITAL INVESTMENT
5.      RAW MATERIAL
6.      SALARY AND WAGES
7.      UTILITIES AND OVERHEADS
8.      TOTAL WORKING CAPITAL
9.      COST OF PRODUCTION
10.      PROFITABILITY ANALYSIS
11.      BREAK EVEN POINT
12.      RESOURCES OF FINANCE
13.      INTEREST CHART
14.      DEPRECIATION CHART
15.      CASH FLOW STATEMENT
16.      PROJECTED BALANCE SHEET

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As beer is often made from wheat and barley and these two grains contain gluten, gluten free beer manufacturers need to use substituted grains. The first thing a gluten free beer brewer needs to consider is whether they intend on making a pale or dark lager. The answer to this is that roasting grains for the longest time tends to produce the darkest beers.

   Project Report Covers:

•     Introduction
•     Uses and Applications
•     Properties
•     Market Survey with future aspects
•     Present Manufacturers
•     B.I.S. Specifications
•     Manufacturing Process with Formulae
•    Cost Economics with Profitability Analysis
•     Capacity
•     Land & Building Requirements with Rates
•     List & Details of Plant and Machinery with their Costs
•     Raw Materials
•     Details/List and Costs
•     Power & Water Requirements
•     Labour/Staff Requirements
•     Utilities and Overheads
•     Total Capital Investment
•     Turnover
•     Cost of Production
•     Break Even Point
•     Profitability
•     Land Man Ratio
•     Suppliers of Plant & Machineries and Raw Materials.

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Project Report Covers:

•     Introduction
•     Uses and Applications
•     Properties
•     Market Survey with future aspects
•     Present Manufacturers
•     B.I.S. Specifications
•     Manufacturing Process with Formulae
•    Cost Economics with Profitability Analysis
•     Capacity
•     Land & Building Requirements with Rates
•     List & Details of Plant and Machinery with their Costs
•     Raw Materials
•     Details/List and Costs
•     Power & Water Requirements
•     Labour/Staff Requirements
•     Utilities and Overheads
•     Total Capital Investment
•     Turnover
•     Cost of Production
•     Break Even Point
•     Profitability
•     Land Man Ratio
•     Suppliers of Plant & Machineries and Raw Materials.

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CODE NO. (905]

Among the alcoholic drinks, Beer is quite common and popular in almost every Country of the World.   People of different Countries take beer in varying much like a soft drink in European Countries it is  just a substitute  of  water.   The alcoholic contents and main source stuff also keep varying according to the tests of the major part of population of the particular country although it is a fashion to ask for beer of every origin in every Country.

Formulations of beer manufacturing are done with the view of availability of the raw materials in that particular part of the World where the brewery is proposed to be established.  In most of the parts of the world, barley is a universal source of beer extraction.   But, beers are manufactured from Chamomile flowers and powdered gingers etc. as well.  Separate  formulations  have been  adopted  for  every  major ingredient  used  in  brewing  & distillation of beer.  Three formulations are given here:

Project Reports Cover:

Introduction
Uses and Applications
Properties
Market Survey with future aspects
Present Manufacturers
B.I.S. Specifications
Manufacturing Process with Formulae
Cost Economics with Profitability Analysis
Capacity
Land & Building Requirements with Rates
List & Details of Plant and Machinery with their Costs
Raw Materials
Details/List and Costs
Power & Water Requirements
Labour/Staff Requirements
Utilities and Overheads
Total Capital Investment
Turnover
Cost of Production
Break Even Point
Profitability
Land Man Ratio
Suppliers of Plant & Machineries and Raw Materials.

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Flour is produced from both plantains and eating bananas in many regions, which can then be used in soups, baking or as a drink. The banana can also be used to make vinegar and to brew alcoholic beverages. The stamina flowers can be used as a vegetable, after briefly heating them in salty water (to remove the bitterness). Bananas can also be used as a starch-rich animal feed (pig farming). The fresh leaves are high in protein content, and are preferred for their taste by cattle and chickens. The leaves are also commonly used as packing material and for roofing. Along with the pseudo-stem they offer excellent mulching material. The exclusive use of healthy seeds, and application of appropriate measures, offer the most effective preventative and thus alternative methods of controlling insects and nematodes. The application of waste from extensive shrimp farms in Ecuador (shrimp shells) has shown good results against nematodes beside being a good organic fertilizer.

The book contains the following chapter: Banana, Cultivation of Bananas, Banana and its Bye-products, Technology of Banana Products, Banana Chips Manufacturing, Paper and Boards from Banana Stem Waste, Fruit Juices and Wines Technology, Technology of Banana Dehydration, Physiology of the Banana Root System, Banana Beer Technology, Tissue Culture in the Banana Industry, Processing of Banana, The Ripening of Bananas, Banana Wine, Technologies and Packages of Banana, Making Export Quality Bananas, Dried and Dehydrated Products of Banana, Improvement of Banana, Banana and Its Bye Products (Project Profile), Banana Fibre Extraction and Hand Made Paper, Banana Fibre Extraction and Weaving, Banana Plantation, Banana Powder (Dried Banana), Banana Wafers, Organic Cultivation of Banana, Wine From Banana (Project Profile).

The post Complete Book on Banana Cultivation, Dehydration, Ripening, Processing, Products and Packaging Technology appeared first on EIRI - eBooks and Project Reports.

Presently, some 36 units are manufacturing beer in India with an estimated output of 670 mn litres. The market for beer in India was about 65 mn cases of 12 bottles each and was slated to touch 90 mn cases in 2002-03.   In consumption, India holds the 29th position with the annual consumption growing by 8% per year. Per capita consumption of beer is as low as half-a-litre as against 128 litres in Germany, 129 litres in New Zealand and 116 litres in Denmark. Even China has a per capita consumption of 20 litres.

Project Reports Cover:

•     Introduction
•     Uses and Applications
•     Properties
•     Market Survey with future aspects
•     Present Manufacturers
•     B.I.S. Specifications
•     Manufacturing Process with Formulae
•    Cost Economics with Profitability Analysis
•     Capacity
•     Land & Building Requirements with Rates
•     List & Details of Plant and Machinery with their Costs
•     Raw Materials
•     Details/List and Costs
•     Power & Water Requirements
•     Labour/Staff Requirements
•     Utilities and Overheads
•     Total Capital Investment
•     Turnover
•     Cost of Production
•     Break Even Point
•     Profitability
•     Land Man Ratio
•     Suppliers of Plant & Machineries and Raw Materials.

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