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  3. Indian Authorities may set 'reference prices' to stop under-invoicing o…

Indian Authorities may set 'reference prices' to stop under-invoicing of alcohol imported to India

23 Aug 2023

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Key Takeaways
  • Company outshining the Industry growth indicates the company is on the path of extreme profitability & growth opportunities.

  • The tremendous growth & product diversification might also increase the company's valuation over time compared to its peers & competitors.

  • Stronger growth prospects for the company might benefit shareholders in the form of increased returns.

  • Company outshining the Industry growth indicates the company is on the path of extreme profitability & growth opportunities.

  • The tremendous growth & product diversification might also increase the company's valuation over time compared to its peers & competitors.

  • Stronger growth prospects for the company might benefit shareholders in the form of increased returns.

Anheuser Busch Inbev India (AB InBev) Unlisted Shares

Anheuser Busch Inbev India (AB InBev)

2.15%

Expert Analysis

AB InBev outperformed the industry & consistently gained the market share, says Kartikey Sharma

AB InBev India President’s words 

In a lot of our focus markets, we are actually seeing the gap close to the market leader and in some cases, became the leader." says Kartikeya Sharma


Justification

  • AB InBev India, the seller of premium drinks such as Budweiser, Hoegaarden & Corona has outperformed the industry growth by 50%, with the industry growing by 20%.

  • The company’s growth is attributed to its brand mix & new entrants in the consumer market.

  • United Breweries & Carlsberg, two other major players, blamed supply chain issues & government restrictions for their low growth in the quarter.

  • UB accounts for half the segment, followed by AB InBev which accounts for ¼ followed by Carlsberg accounting for less than 18% share, three together dominating the market with 90% share.

  • Insights about the Indian alcohol beverage market 

    • Heavily taxed with just 80k alcohol retail licenses.

    • 20 mn people enter the legal drinking age every year.

  • The company that produces 1 in every 4 beers around the world has been focusing on products beyond beer such as gin, vodka, spiced rum, etc.

Publisher:ET Retail.com