NEW DELHI:
French Spirits
maker
Pernod Ricard
expects a threefold jump in its sales in the
Indian market
by next decade, led by macroeconomic tailwinds, favourable demographic dividend and growing premiumisation in IMFL and imported brands here.
According to Pernod Ricard India MD Jean Touboul, the Indian market, currently ranked at number two globally, has the potential to become a leader in the next 10-15 years, replacing the US market, for the company.
"We are growing faster with the tailwinds in macroeconomics, in demographic and well India being the most populous country on earth, I am personally convinced that yes, we will be the market number one in Pernod Ricard at some point," Touboul told PTI.
However, he also added: "I just cannot tell you if it will be in 10 years, 15 years, that is not easy to predict but my conviction is that yes, one day India will be the market number one for Pernod Ricard."
Pernod Ricard is having a double-digit growth both for IMFL and strong double-digit growth for the imported products here, he said.
"As far as the net sales are concerned, it is obviously a key market in the current state of play and even more important for the growth and future results of the group because there is no doubt that India is a market that is extremely favourable," he said.
Touboul also pointed towards the Indian regulations regarding the alcohol trade terming it as "complex", which needs to be simplified for ease of doing business here. "We are on the trajectory where we want to be able to triple our net sales in the next decade. That is our ambition. And to do that, we will go to more innovation," he said.
Pernod Ricard's global portfolio comprises over 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club and Jacob's Creek. It also owns IMFL brands such as Blenders Pride, Imperial Blue and Royal Stag.
Currently the IMFL (Indian-made foreign liquor IMFL) brand of Pernod Ricard contributes close to 95 per cent of its volumes and above 80 per cent of our net sales.
"Today, the vast majority of our business in the Indian alcohol market is in the IMFL. That is also where we are particularly strong with our three main brands- Imperial Blue, Royal Stag and Blenders Pride.
"And we are enjoying historically double-digit growth with these brands as they are delivering quite well for us and for the Pernod Ricard group," Touboul said.
According to Touboul, Indians want to drink better and Pernod Ricard aims to offer them more premium quality products.
"There is premiumisation because the revenue per capita is increasing and it is a natural evolution for consumers when they have more revenue to push their consumption towards a better product with higher price point increases as well," he said.
"We are here to go with this trend and as much as possible accelerate by proposing an ever more product of great quality and that helps consumers to trade up," he said.
As part of the premiumisation drive Pernod Ricard will continue to innovate on the core brands - Imperial Blue, Blender's Pride and Royal Stag.
"We will regularly come with line extensions for these products to again propose within this Seagram quality type of product, some diversified experience with diversified taste, diversified finish, whatever twist we put on the product to be able to provide the various experiences to our consumers," he added.
It would have a process of continuous innovation and investment behind brands and look at other initiatives for expanding its portfolio, as it is launching a new Indian single malt Longitude 77.
"There is space to develop more and more premium products, which are also made in India. Our Indian single malt is a great example of that. We are at a price point which is parity with an international single malt of 12 years old, like Glenlivet 12 in our case because we know we are producing a very qualitative product in India," he said.
Pernod Ricard also owns Scotch whisky maker
Chivas Brothers
, which has popular single malt and blended Scotch whisky brands, including Chivas Regal, Ballantine's, Royal Salute and The Glenlivet and expects if UK and India Free Trade Agreement (FTA) will be a win-win situation for both States.
It will help "develop the possibility in particular to import more qualitative product to India at a more reasonable price" and would be more accessible for a bigger part of the Indian population.
Moreover, if duty is waived on bulk imports of Scotch, it will help IMFL also.
"The IMFL that we do, we use Indian grain spirits and we mix that with Scotch malt that we import from Scotland obviously. So that is something that where we could have a benefit if there are lower custom duties on that part of the business," he said.
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