Takshashila
Consulting (TKC)
Submission made by: Yash Kochar
College name: MDI Gurgaon
Think-tank
Program 2023 Company name: United Spirits Ltd.
Industry: FMCG
Date of Submission:
29-07-23
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Alcohol-beverage industry landscape in India United Spirits Limited’s business model and Financials
Size of the alcoholic beverage market in Key Trends Net Sales (Rs. In Crores)
India Business Model
- India is one of the fastest growing 12000 • Branded manufacturing for core
Market Size in Trillion INR
4.00 alco-bev markets brands in prestige and above
3.50 10000
- Expected CAGR of 6.8% between segments
3.00 8000
2.50 2020-23 • Licensing model for high volume
6000 lower end brands
2.00 - 70% of the growth will be driven by
1.50 the lower middle and upper 4000
1.00 middle-income groups
Financials
2000
0.50 • Financials are strong
- Premium products have recorded 0
0.00 • Revenue is upward trajectory
FY FY FY FY FY a 5-year CAGR of 7.7% in 2018 16 17 18 19 20 21 22 23
2015 2020 2021 2022 2025* - The share of beer consumption has 20 20 20 20 20 20 20 20 • Profit margins are increasing at
Source: https://www.statista.com/statistics/697927/market- increased from 44.56% to 49.25% a faster pace because of
size-of-alcohol-india/ licensing
Revenue by Product Categories Across Current Scenario PATM (in %) Value Proposition
Select 10 States
- Among top 3 sources of revenue 4 USL's value proposition is based on:-
earning across most states
Assam • Quality: Company is committed to
- Alcohol consumption globally, and 3 providing consumers with the best
Karnataka in India, is price inelastic possible drinking experience.
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- Alcohol contributes to 99% of • Variety: USL offers a wide variety
Maharastra
total state revenue in majority of 1 of spirits products, to suit all tastes
Rajasthan the 10 states considered for the and budgets.
study (excluding petroleum) 0
• Affordability: Company is
Uttar Pradesh - Industry contributes to around 016 017 018 019 020 021 022 023 committed to making its products
2 2 2 2 2 2 2 2
0 20 40 60 80 100 1.5M
120jobs in India accessible to a wide range of
consumers.
Country Liqour Foreign Liqour
Malt Liquor Others
Source: https://icrier.org/pdf/ES/ES_Alcoholic_Beverages.pdf
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Top players in business worldwide & what can we learn from them? Business goals for USL, for the next 3 years
Top 5 players globally
Future Goals
Insights/Findings Goals
• Beer consumption in India is on the • Build or acquire
rise. Also, there is a growing demand skills/competencies that enable USL
for premium and craft spirits, as well to lead this segment
as low-alcohol and non-alcoholic
beverages
• Alcohol consumption among both men • Build/acquire distribution channels
and women is higher in rural India to tap into this market and produce
than in urban India quality products within reasonable
price to change consumer preferences
from country liquor
• Young alcohol consuming population is • Build brands that target the youth
Key Learnings on the rise
• Youth targeted marketing activities
needs be made fun and engaging
• Strong brands: AB InBev's Budweiser brand is the best-selling beer in the e.g., Bacardi House Parties
world, and it has a strong presence in many different markets
• Haryana, Assam, Uttar Pradesh are • Work towards exploring these
• Wide distribution networks: AB InBev has a distribution network that high alcohol consuming states, but untapped markets
reaches consumers in over 150 countries. Diageo has a distribution network these markets are dominated by
that reaches consumers in over 180 countries. country liquor
• Innovative products: AB InBev has been innovating by introducing new • Majority of the country considers • Work towards removing the stigma
products, such as the Michelob Ultra Pure Gold beer. Diageo has been drinking as a taboo that is associated with drinking
innovating by introducing new products, such as the Johnnie Walker • Educate people on safe drinking
Blenders' Batch series. practices
D Please elaborate
Candidature
Explanation
What are your Achievements?
1 • Experienced Systems Engineer with 34 months of work experience at Tata Consultancy Services (TCS), ensuring zero downtime for multiple
Tell us applications and resolving over 1000 user issues.
about your • Summer Intern at Optum Global Solutions (India) Pvt Ltd (UHG), conceptualizing a strategic roadmap for digitization of quality measures and
yourself receiving appreciation for research and solution recommendations.
• Bachelor's degree in Electrical Engineering from Heritage Institute of Technology, Kolkata
• Passionate about trekking, photography, fitness, and reading books on personal development, business, and fiction
2 What are your Aspirations?
• Career growth: To accelerate my career and access higher-level management positions, leveraging my existing experience in computer
What made consultancy
you • Industry transition: An interest in exploring the business side of things and having that bigger picture in mind
pursue • Broader skill set: Developing a diverse skill set that encompasses finance, marketing, operations, and strategic thinking to effectively solve
MBA? complex business problems and take on cross-functional responsibilities
• Networking opportunities: Leveraging the extensive networking opportunities provided by MBA programs to expand your professional network and
gain access to valuable connections, mentorship, and potential collaborations
Your expectations from the program?
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Why do you • Comprehensive corporate readiness: The TKC program promises to provide a safe and structured environment to prepare students for the
want to corporate world
participate • Consultancy and problem-solving skills: The TKC program focuses on developing students into true consultants and exceptional problem
in the solvers. This aligns perfectly with my passion for analyzing complex challenges, developing innovative solutions, and making a tangible
program? impact.
• Career guidance and exploration: As a student seeking direction, I believe receiving expert advice will help me make informed decisions
about my future
Note: Please write your explanation in a point-wise format
