With an investment of $0.5 million (Rs 22.5 million) for setting up a new line for producing Indian Made Foreign Liquor (IMFL) at Modi Distillery in Modinagar (Uttar Pradesh), Modi Illva India, a 50:50 joint venture between Umesh Modi Group and Italian spirit maker Illva Saronno, is further planning to invest $5 million-$7 million (Rs 224.9 million- Rs 314.9 million) within the next four years.
The investment will be done for product development, marketing, branding and strengthening position in the Indian premium spirits market.
Further, the joint venture (JV) is planning to garner a 15 per cent market share in Vodka segment in the next four years. Vodka market in India is growing at a phenomenal Compound Annual Growth Rate of 30 per cent.
Speaking to Business Standard, Modi Illva India Marketing Head Paritosh Bhandari said, “As Indian Vodka market is witnessing phenomenal growth every year, we have decided to tap this opportunity by launching Artic Vodka at a new position bridging the gap between Smirnoff and Absolut. We have already launched these products in Delhi, Mumbai, Thane and Bangalore and have received encouraging responses. Apart from the metros, we are also eyeing Tier-II cities and would very soon launch our brand in Goa, West Bengal and Rajasthan.”
Commenting on the company’s future strategy he added, “We are working on some of the products and planning to expand our product portfolio. Starting with ‘Artic’ – Pure Italian Luxury Vodka, our partners, Illva Saronno are one of the world’s finest spirits makers and we are committed to bringing in the Illva portfolio to India shortly, namely Disaronno, Tia Maria and Isolabella Sambuca. We will also look forward to bringing in other premium brands to the country.” With new products in the offing and buoyed by the growth, the company is eyeing a turnover of $100 million (Rs 4499 million) in the next five years.
He maintained, the alliance is a platform for both companies to launch a portfolio of premium brands in India and to offer the choicest spirits to the discerning Indian consumer. The venture will operate in both domestic (IMFL) as well as imported (BAS) segments. “Our vision of the JV is to be amongst the top three companies in the premium spirits domain in India by the year 2015.” The company has an installed capacity of one million cases per annum.