Madhu Kela, Founder of MK Ventures, is bullish about the potential of the Alcohol & Beverages market in India. Drawing comparisons with China's Kweichow Moutai, the world's most profitable alcohol company, Kela highlighted the untapped opportunities in India.
Kweichow Moutai's current profitability of $12.5 billion dwarfs the combined profitability of Indian alco-bev companies, which stands at a mere $0.5 billion. This disparity underscores the immense growth potential within the Indian market. Interestingly, Moutai started at a similar profitability level 15 years ago before growing exponentially, indicating the transformative potential of the alco-bev industry when adequately leveraged.
India is the world’s third-largest alco-bev market by volume, trailing only China and the United States. The market is projected to grow from ₹1,70,000 crore in FY15 to ₹5,00,000 crore by FY28. However, per capita consumption, particularly of beer, remains significantly lower than global standards, suggesting vast room for expansion.
Madhu Kela has Radico Khaitan in his portfolio. Some other well-known alcohol stocks are United Spirits, United Beverages, RK Distilleries, GM Breweries etc.