Having consolidated its spirits operations into one company, UB Group is looking to build on its position of strength in the Indian market and establish itself internationally, according to a Euromonitor International assessment carried by http://www.just-drinks.com.

UB Group’s US$354-million acquisition of rival Shaw Wallace last year and the decision to consolidate all its spirits operations into one unit called United Spirits has created a spirits powerhouse in India. And the objective is to build further from that position of considerable strength, not only in the domestic market but also internationally.

The consolidation has seen the creation of a single spirits company with 140 brands that span all price points, giving United a 53% share of the 95-million-case spirits market in India, although its sales outside India are currently negligible.

In spite of its strong presence, Euromonitor says, growth rates are set to slow between 2005 and 2010 in the key product segments where it dominates. “Given the scale of the market, this will still imply large volume increases. But it will mean diminishing value returns, with spirit value sales expected to increase on average by only 3.1% per year,” the Euromonitor report points out.

Ironically, given its chosen name, the small but growing Indian wine sector offers United a chance of both strong volume and value growth. Euromonitor International forecasts that the 0.5-million-case sector is expected to grow by 13% a year in both volume and value terms between 2005 and 2010. With an average unit price of Rs 970 (US$21.10) per litre, wine will be over 50% higher in price than spirits by 2010.

To read the complete report, go to http://www.just-drinks.com
(Access to this report requires a www.just-drinks.com subscription)