Why international drinks companies look at India

The pull

The first reason is people. India has one of the largest populations in the world and a large share of it is young. Companies watch any market with that many adult consumers.

The second is change. Incomes have risen in cities and drinking habits have shifted. More people try beer, wine and spirits in restaurants and bars. Interest in craft beer, premium spirits, gin and wine has grown from a small base. We do not quote figures, because many in circulation are unreliable.

The third is the supply side. India grows grain, fruit and sugar crops and has brewing and distilling skills. It offers production options for brands that want to make things locally.

The friction

Alcohol is a state subject. There is no single Indian market. Each state sets its own licences, excise duty, pricing, label rules and ways of selling. Several states, including Bihar and Gujarat, have prohibition. Rules change, sometimes quickly.

Imports meet central customs duty and import registration, then state duties and rules on top. The shelf price of an imported drink can be far above its price at home. Advertising for alcohol is restricted, so brand building takes different forms.

Distribution is the other challenge. In several states the route to the shelf runs through state-controlled channels. In others private distributors and retailers matter. Cold chain, long distances and heat add technical difficulty for beer and wine.

Who succeeds

We make no claims about who wins. We can describe what tends to help. Companies that treat India as a set of state markets do better than those that treat it as one. Companies that pick one or two states and learn them before expanding avoid costly mistakes. Those that choose partners with care, test products with local drinkers and work with licensing advisers and lawyers from the start move with fewer surprises.

Patience matters too. Licences and approvals take time. Plan the cash to last beyond the first estimate.

Ways in

There are several routes: import finished products, bottle or brew in India under contract, license your brand to a local producer, set up a plant or buy into a local business. Each has trade-offs between control, speed and cash. Our guides on getting the numbers ready to sell a brewery and which of your beers make money show the kind of numbers an Indian partner will ask to see.

Ingredient and equipment makers have a different route: selling to the breweries, wineries and distilleries already operating. Packaging firms follow a similar path.

Questions to ask before you spend

• Which states and why?
• What does the full path from your gate to a shopper cost once duties and margins are added?
• Who is the partner? How will you check them?
• Can the product survive heat and distance?
• What is your cash plan if licences take twice as long as you hope?
• What would make you stop?

If you can answer these on paper, you are ready for deeper research. If not, the paper exercise is the right next step. Our guide on planning a brewpub for seasonal demand shows how to think about demand in a hot country.

How we help

We help drinks, ingredient, equipment and packaging companies from abroad plan entry into India. Our market entry work covers choosing states, comparing routes, finding partners, market research, plant and project planning and quality systems. It runs remotely by video call and shared data, with site visits by arrangement.

We work alongside licensing advisers and lawyers and do not replace them. We do not promise results, quote fees in articles or name clients. If you are curious, start with a conversation.

A sober view

India deserves attention from any drinks company that can wait and learn. It does not suit a plan that needs quick, large sales in the first year. The rules, the price build-up and the distribution paths all slow a newcomer.

A reasonable first step is a short, honest study of two or three states, one product and one route. If the numbers still look good after that, deeper work is justified. If not, you have spent little and learned a lot.

Common questions

Is India one market?

No. Alcohol is a state subject, so licences, duties and rules differ from state to state and change.

Is it easy to import drinks into India?

Imports meet central customs duty and import registration and then state rules. Take advice from a customs broker and a licensing adviser.

Where should a foreign drinks company start?

With a clear question: which state, which product, which route. A short planning exercise comes before any spending.