A survey appearing in the Times of India in 2022 showed that India is the largest consumer of whisky globally. Yet, the same survey showed that only 16% of Indians living in urban areas drink it. More people in India seem to like to consume wine and beer on a large scale. Whether investors enjoy a glass or two of alcohol now and then, the best liquor stocks in India may have some investing potential and they are worth a look. Viewing the alcohol industry from a purely economic perspective, there are some top liquor brands and companies that are expanding, competing for their place among the millennials, Gen X and Gen Z alcohol consumers in the Indian population.
In the simplest terms, liquor stocks are those stocks that are generated by companies engaged in the production, distribution, and sale of alcoholic beverages. These beverages include Indian-Made Foreign Liquor (IMFL), country liquor, beer, wine, etc. Investing in liquor stocks could prove to be profitable given the demand for alcohol and its potential to rise. Furthermore, government regulations also provide for a steady business environment for liquor companies so it's not surprising to see the best liquor stocks in India which you can probably invest in.
It has long been known that alcohol has been an ingredient in certain medicines in the field of Ayurveda. However, when investing in stocks of alcohol, knowing about some statistics is important to drive investment in the industry. The per capita consumption of alcohol in India was forecast to constantly rise between the years 2023 to 2028 by a total of 0.1 litres (+3.16%). In 2028, this is predicted to go up to 3.24 litres.. Furthermore, due to heavy import duties, consumers are gradually looking to Indian-made liquor rather than the earlier reliability of foreign brands. So, before further ado, let’s get into some of the prospective liquor stocks in 2023 to invest in India.
The alcohol industry is regulated by the Indian government and hence may be viewed as relatively stable compared with other industries. As long as human consumption of alcohol continues, so will the demand. Moreover, given India’s large and expanding population, the consumption of alcohol may be viewed as something that will only increase over time. Changing lifestyles and disposable income also may be contributing factors to increases in the consumption of alcohol. Given these scenarios, here are some good options in liquor stocks to invest in India:
Radico Khaitan was the leading distillery and brewery company in India in 2022. It boasted a net sales of approximately 125 billion Indian rupees. The company produces Indian-Made Foreign Liquor and country liquor. One of the oldest and most established liquor firms in India, Radico Khaitan has over seventy-five years in the making of spirits. It started operations in 1943, and spearheaded by Dr Lalit Khaitan, the company has made a name for itself by producing brands like 8 PM, Rampur Select and Magic Moments.
United Spirits is a subsidiary of the larger UK-based company, Diageo. Diageo is a multinational with branches in international locations. United Spirits have a robust presence in India and are known for its international brands like Black Label, Bailey’s Irish Cream, Smirnoff and Tanqueray, not to mention the more pricey Talisker. The company also manufactures the world’s favourite Guinness lager. This is the second top brewery and liquor manufacturing company with net sales amounting to 94 billion Indian rupees. The company stands out for its production of low-alcohol content beverages and also makes brands of wine, tequila, beer and gin. With a wide variety of products to boast of, made with the highest quality standards, United Spirits may be one of the best liquor stocks in India.
Som Distilleries and Breweries are one of the top liquor companies on this list as it has seen a good run in the past year. It boasts of making Indian liquor with a wide variety of spirits from whisky and brandy to gin and vodka.
A company which has reached fame due to its production of whisky and brandy, Tilaknagar Industries is a reputed player in the Indian liquor industry. The company began its path into the liquor industry during the pre-independence period when Mahadev Dahanukar founded the famous Maharashtra Sugar Mills. The Dahanukar family runs and operates the successful Tilaknagar Industries today. Additionally, the company is known for using sustainable practices in its operations and has made substantial strides to avoid its carbon footprint.
Among the liquor stocks in 2023, you cannot leave out Globus Spirits Ltd., a company incorporated in 1993. The company is popular for its brand of country liquor. Its brands include Officer’s Choice and White Lace. The company is committed to providing sustainable operations and undertakes different programmes to facilitate the communities in its functions.
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Whether you open a demat account and wish to invest in the leading liquor stocks on the market, or stocks in other industries, you must note that past performance may not be indicative of present or future stock performance. You should also note that it is important to do a good amount of research before investing in a liquor company stock or any other. This holds even if you choose any upcoming IPO for investment. The liquor industry may be touted as one of the growth industries in the food and beverage sector of Indian markets, and you may consider these stocks depending on your financial goals.