Pernod Ricard Sets Sights on Trebling India Sales by 2033

French spirits giant Pernod Ricard is bullish about the Indian market and expects to triple its sales in the country by the next decade. This growth is anticipated to be driven by several factors, including favorable macroeconomic conditions, a young and growing population, and increasing demand for premium alcoholic beverages.

India Poised to Become Pernod Ricard's Largest Market

According to Jean Touboul, Managing Director of Pernod Ricard India, the Indian market has the potential to surpass the United States and become the company's largest market in the next 10-15 years. Touboul cites India's strong economic growth, favorable demographics, and large population as key factors behind this potential.

Double-Digit Growth for IMFL and Imported Brands

Pernod Ricard is currently experiencing double-digit growth for both its Indian-made foreign liquor (IMFL) and imported brands in India. Touboul emphasizes the importance of the Indian market for the company's overall growth and future results.

Challenges and Opportunities in the Indian Market

While Pernod Ricard is optimistic about the Indian market, Touboul also acknowledges the challenges posed by complex alcohol regulations. He calls for simplification of these regulations to improve the ease of doing business in India.

Innovation and Premiumization Drive Growth

Pernod Ricard aims to achieve its ambitious growth target by focusing on innovation and premiumization. The company plans to introduce more line extensions and diversified experiences within its core IMFL brands, such as Imperial Blue, Blender's Pride, and Royal Stag.

Made-in-India Premium Products

Pernod Ricard is also committed to developing more premium products that are made in India. The company recently launched Longitude 77, an Indian single malt whisky, as an example of this strategy.

UK-India Free Trade Agreement: A Win-Win Situation

Pernod Ricard expects the proposed UK-India Free Trade Agreement (FTA) to benefit both countries. Touboul believes that the FTA will enable the import of higher-quality products to India at more affordable prices, making them accessible to a larger segment of the population. Additionally, reduced custom duties on bulk imports of Scotch could positively impact the IMFL business.

Pernod Ricard's ambitious growth plans for India reflect the company's confidence in the country's potential. By leveraging favorable market conditions, focusing on innovation and premiumization, and exploring opportunities presented by the UK-India FTA, Pernod Ricard aims to solidify its position as a leading player in the Indian alcoholic beverages market.