| |
..India Business Report: Business
Bites
|
|
 Every
week Ronnie Screwvala lunches with India's corporate bigwigs
in BBC World's acclaimed business programme Business Bites.
Filmed in some of the best restaurants in India, the programme
takes those people defining the country's economy away from
the formality of a TV studio to offer an insider's look at
the industries being examined.
This
Sunday’s edition of Business Bites features two
of the most high profile leaders from the liquor industry
in India -- Dr. Vijay Mallya, Chairman of UB Group and Mr.
Richard Rushton, Managing Director of SABMiller India.
The two head honchos talk about the prospects of the industry,
being seriously committed to promoting responsible drinking
and to doing some good business in the country. They discuss
the challenges of marketing alcohol, government restrictions
and retailing.
|
|
About
alcohol retailing in the country
Dr. Mallya says, “The trouble is that in
a country of our size the number of retail outlets
is just 10% of what it should be. The distribution
should be more widely spread than it currently
is... this is the biggest challenge.” He
adds, “India will never be a free market
for alcoholic beverages. What the government should
realise is that we as an industry are willing
to help them earn more revenue if they are willing
to help us.”
|
|
|
Mr. Richard Rushton comments about the challenges
prevalent in the country, “The pressures
we face from the industry profitability point
of view have never been more challenging.”
|
|
|
On
the challenges faced by the ban on liquor advertising
Dr.
Vijay Mallya, Chairman, UB Group |
Dr.
Mallya says, “Any form of restriction encourages
people to think differently and find a way around. I
have said to the government, that we as an industry
will go on a national campaign to encourage responsible
drinking. I have personally appeared in television commercials
saying: do not drink and drive. That is commitment.”
 |
| Richard
Rushton,
MD, SABMiller |
Mr. Rushton adds,“If you are a new entrant and
with a new brand proposition it is tough especially
if you do not have any natural platform to promote.
The acquisition route is a strong feature or characteristic
of our business. I would say that India is at one end
of the extreme in terms of legislative restrictions.
If the onus were put on the industry to inform the public…the
industry would be rightly encouraged to take those initiatives.”
|
|
|
|
|
