Understanding the Market Landscape
SOM Group of Companies, a central India-based alcoholic beverage manufacturer, is making significant strides in the competitive beer market. Founded in 1986 and headquartered in Bhopal, SOM Group has transitioned from a distribution-centric business to an integrated manufacturing powerhouse. With operations spanning 18 states and manufacturing facilities in four, the Group remains a key player in the beer segment.
Experience and Market Adaptation
With over three decades of experience in the beer industry, SOM Group has honed its expertise in navigating India’s diverse regulatory landscape. COO Diwakaran Suryanarayana emphasizes the group’s focus on consumer-driven product development, leveraging formal tasting sessions with diverse consumer groups to ensure market acceptance. The Group’s in-depth understanding of varying state regulations, including excise duties, tax structures, and pricing mechanisms, has been crucial to its expansion strategy.
Manufacturing Growth and Strategic Locations
In the last six years, SOM Group has significantly increased its manufacturing capacity, expanding from one to three units and nearly doubling its production to 3.0 million hectolitres. This expansion, backed by an investment of over Rs 300 crores, has seen the Bhopal unit producing 1.5 million hectolitres annually, catering to Central and North India, as well as export markets. The Group’s additional facilities in Hassan, Karnataka, and Cuttack, Odisha, have also seen substantial growth, serving regional markets and contributing to the company’s robust production capacity.
Product Portfolio and Market Challenges
SOM Group offers a diverse range of beer brands, catering to various consumer segments. From entry-level options like Legend Strong Beer to premium brands like Black Fort and Hunter, the company’s portfolio is designed to appeal to a wide audience. However, the expansion has not been without challenges. Navigating complex regulatory environments, varying state policies, and tax structures remains a significant hurdle. Nevertheless, SOM Group continues to engage with regulatory authorities to foster a more business-friendly environment.
Future Expansion and Strategic Initiatives
Looking ahead, SOM Group plans to further expand its market reach and explore opportunities in the super-premium beer segment with products like Woodpecker Draught beer. The company is also eyeing the international market, with its brands already present in Europe, the USA, South Africa, UAE, and China. As the Indian alcoholic beverage industry grows, driven by favorable demographics and increasing disposable income, SOM Group is well-positioned to capitalize on this trend, particularly in the rapidly expanding premium beer market.
Vision for the Industry’s Future
Suryanarayana envisions a bright future for the Indian alcoholic beverage industry, marked by growing consumer demand and evolving preferences. The expansion of large beer and liquor stores in urban areas reflects changing consumption patterns, and SOM Group is poised to thrive in this dynamic environment. By maintaining strong relationships with regulatory authorities and focusing on accessibility and affordability, the Group aims to ensure its continued success in the market.
