Industrie des boissons indiennes

Beverage

Indian beverage industry's double-digit growth will continue, says IBA

Saturday, April 13, 2013 IST

Harcha Bhaskar, Mumbai

The Indian Beverage Association (IBA) expects the country's beverage industry to continue to grow in double digits in 2013, despite the recessionary trends being shown by most economies the world over, including the Indian economy.

Speaking at an IBA-organised seminar titled 'Agenda for Growth: Indian Beverage Industry – Leveraging International Practices' in Delhi, experts from the beverage industry stated that it could witness a revolution, fuelled by changing lifestyles, a growing middle-class, rapid urbanisation and increased disposable incomes.

Participants in the seminar included Rakesh Kacker, secretary, Ministry of Food Processing Industries, Government of India; K Chandramouli, chairman, Food Safety and Standards Authority of India (FSSAI); Geoff Parker, president, International Council of Beverages Associations, and Patricia Vaughan, senior vice-president, American Beverage Association.

The non-alcoholic ready-to-drink beverage segment has been growing at a compound annual growth rate (CAGR) of 13 per cent since 2009, and is one of the segments that have defied the slowing economic growth.

Arvind Varma, secretary general, IBA, said, "The non-alcoholic ready-to-drink beverage industry is one of the largest investors in the country and has contributed significantly to the growth of allied industries. This industry is witnessing robust growth, driven by a combination of factors such as increased investments and innovations.”

“However, the government needs to take a long-term view on the industry while formulating policies or else there is a chance this industry’s growth may get derailed,” he stated.

“IBA aims to act as a catalyst to enable the non-alcoholic beverage industry to play an increasingly significant role in the growth of the economy, by providing employment opportunities and driving income growth and therefore has raised its expectations with the government authorities,” Varma added.

IBA's suggestions

At the deliberations in the seminar, speakers observed that the macro-indicators and the demographic dividends favour robust growth for the beverage industry in India.

“With an enabling policy regime, which includes a more rational tax structure, frequent consultations with the industry on food regulations, giving the industry its due recognition as manufacturers of high quality, healthy and nutritious products as well as life-critical products like water, will further help the industry realise its potential,” IBA stated.

As an industry that has strong backward linkages with agriculture, its growth will also benefit millions of farmers across the country.

GST

One of the key areas where the beverage industry expects Central and state government intervention is goods and service tax (GST) and direct tax code (DTC).

The beverage industry has learnt

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