Premiumisation, low packaging costs aid Indian liquor industry's growth - Nuvama

United Spirits

05/03/2024 07:19

** India's liquor industry, the third largest in the world,
expands in second half of 2023, aided by correction in packaging
cost and shift to premiumisation, says Nuvama Institutional
Equities
    ** Adds, Radico Khaitan  RADC.NS  tops sales growth at 29%
in H2 2023, followed by United Breweries  UBBW.NS  and United
Spirits  UNSP.NS  at 13% and 10%, respectively
    ** Expects alcobev companies to continue investing in brands
to improve long-term growth prospects
    ** Nuvama, however, expects marginal growth in 2024 for the
industry, citing slowdown in overall consumption
    ** Brokerage also flags United Breweries' margins as a key
metric to monitor, given the higher dependence on new glass
bottles in premium segment versus peers
    ** Shares of UBBW, UNSP down 0.13% and 0.7% on the day,
which RADC sheds 3.3%

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))