New Delhi: NeuWorld Spirits, an alcoholic beverage startup backed by TRDP group, aims to scale its turnover to around Rs 100 crore in FY24 and have its presence in major markets of the country.
The company, which commenced its operations in January this year, has launched two whiskies – Downing Street and Royal Tribe, catering to the premium and semi-premium segments, respectively.
Besides, NeuWorld Spirits also has plans to introduce a couple of more brands in the whisky segment and to enter into the premium vodka, craft gin, rum and premium brandy, towards having a complete portfolio of alco-bev (alcoholic beverage) products, said its Managing Director Poonam Chandel.
Downing Street and Royal Tribe would cover the entire north India by March 2023, she added.
“By April we would launch premium vodka and another whisky (which will be between mass and semi premium). We have already started working on packaging, communications and sourcing. By end of 2023 we would have a robust portfolio,” Chandel told PTI.
When asked about the turnover, she said: “We are looking to touch Rs 100 crore by the end of FY24” garnering 5 per cent market share in the segments it is present.
It will be producing in excess of 3,00,000 cases of alco-bev from its bottling plants in Nahan and Dera Bassi By FY24, the company would cover most of the north, and east markets and selected markets in the south and west. As per its strategy, NeuWorld Spirits would focus on tier I and II cities.
According to Chandel, the company is working on an asset-light strategy.
“The plan is to first create brands, investing mainly on branding/marketing and eventually wherever, we see the need gaps, to invest,” For instance, NeuWorld Spirits is now sensing a need gap in the procurement of malt spirits in India. It is now actively setting a malt plant for IMFL (Indian made foreign liquor) and is scouting for land, she added.
The Indian alco-bev industry has evolved in the last 15 years with the evolution of new companies, disrupting the liquor market.
“Today a consumer is spoiled for choice. All kinds of brands and companies are investing. The industry is also witnessing premiumisation in consumption and the consumer is now not looking at the amount but also the value and better quality product,” he said.
Hence the current situation is conducive for small companies providing better quality products, she added.
According to a report titled Indian Alco-Beverage Market by Technopak Advisors, the IMFL market in India is estimated to touch 425 million cases (9 litres each) with whisky having 60 per cent market share followed by brandy with 16 per cent, rum with 14 per cent and white spirits with 7 per cent market share.