Indian Alcoholic Beverages Industry Poised for Growth in FY2025: ICRA Report

Indian Alcoholic Beverages Industry Poised for Growth in FY2025: ICRA Report

By Nishang Narayan

Published on October 10, 2024

The Indian alcoholic beverages (alcobev) industry is set to experience strong growth in FY2025, according to a recent report by ICRA. The report predicts a revenue expansion of 8-10 percent, driven by consistent demand for beer and a recovery in the consumption of spirits, as well as an increasing consumer preference for premium products.

In Q1 FY2025, the spirits industry saw a revenue increase of approximately 9 percent year-on-year (YoY), supported by 5-7 percent improvement in realizations and 2-4 percent volume growth. The beer industry, in particular, benefited from the peak season, recording a 12 percent YoY revenue increase, due to 3-5 percent volume growth and 7-9 percent rise in realizations.

Commenting on the volume growth, Kinjal Shah, Senior Vice President and Co-Group Head of Corporate Ratings at ICRA, said: “We expect the alcobev industry volume growth to improve to 5-6 percent in FY2025, up from ~4 percent in FY2024. Spirits volumes are projected to grow at a moderate pace of 2-4 percent, supported by favorable demographics and limited tax increases. Meanwhile, beer is expected to see a 5-7 percent volume growth, building on a high base from FY2024."

Despite the rise in grain prices, particularly non-basmati rice, the operating profit margin (OPM) for ICRA’s sample set of companies is anticipated to remain stable at 12-13 percent in FY2025, thanks to declining packaging material costs such as glass bottles, which benefited from lower soda ash prices.

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Shah noted, "While grain costs surged by 20-25 percent in H1 FY2025, prices are starting to stabilize, particularly for non-basmati rice. Additionally, price hikes granted by various state governments are expected to support margins. However, the diversion of grains toward ethanol production, driven by government blending mandates, will be a key factor to watch."

The capital expenditure (CAPEX) trend within the industry also points to sustained growth. Companies in ICRA’s sample set invested over INR 1,000 crore in FY2023 and FY2024, primarily to enhance distillery and brewery capacities. While CAPEX is expected to moderate to 2-3 percent of operating income in FY2025 and FY2026, this follows a period of significant capacity additions.

ICRA forecasts that debt levels will remain stable, supported by modest debt-funded CAPEX plans and strong cash accruals. Debt coverage metrics are expected to be healthy, with total debt/OPBDITA projected at 0.3-0.5 times and interest coverage at 27-30 times in FY2025.

In conclusion, the Indian alcoholic beverages industry is likely to remain in high spirits throughout FY2025, buoyed by a favorable demand outlook and stable profitability, despite rising input costs.


ButterBrews Opens New Café in Aundh with Coffee-First Experience

ButterBrews Opens New Café in Aundh with Coffee-First Experience

By Manu Vardhan Kannan

Published on April 7, 2026

ButterBrews has opened its new outlet in Aundh, marking its largest format café so far. The new space has been designed as an everyday destination, bringing together a comfortable layout, a strong all-day menu, and a clear focus on coffee.

The café has been planned with multiple zones to suit different preferences. It includes an indoor seating area, a non-smoking outdoor section with an amphitheatre-style setup, and a separate smoking zone placed away from the main space to ensure a smooth and relaxed experience for all guests.

The menu offers a premium all-day selection built around fresh ingredients. Guests can choose from breakfast options, healthy bowls, wholesome meals, and vegan dishes, making it suitable for different tastes and dining needs throughout the day.

Coffee continues to be at the heart of the ButterBrews experience. The café uses 100 percent Arabica beans and serves both house blends and manually brewed coffees. It also features guest roasters like Tulum Coffee Roasters and Ground Zero Coffee Roasters, adding variety to its coffee offerings.

Desserts and baked items are prepared in-house at ButterBrews’ bakehouse. Popular choices include the Basque cheesecake and cinnamon rolls, which have already become favourites among guests.

Commenting on the opening, Harsh Agarwal, Co-founder, ButterBrews, said, “ButterBrews, Aundh is our largest format cafe yet. We have built a stronger indoor experience and created clear zones across the cafe so guests can settle in the way they like. We want this to be an address people can count on through the week.”

Umang Bhimrajka, Co-founder, ButterBrews, added, “For us, coffee has always been non-negotiable. With 100 percent Arabica beans, house espresso coffees and manual brews that rotate speciality roasters, we are bringing a program that balances familiarity with discovery. Alongside that, the all-day menu and our bakehouse desserts complete the experience we want to offer Aundh.”


McDonald’s India Brings Back Limited-Edition Sipper with App-Exclusive Meals

McDonald’s India Brings Back Limited-Edition Sipper with App-Exclusive Meals

By Hariharan U

Published on April 7, 2026

McDonald's India – North and East has reintroduced its popular limited-edition Sipper, bringing back the fan-favourite collectible as part of its app-exclusive Super Sipper Meals. The offering follows strong customer demand earlier this year and is available for a limited time across select regions.

Accessible exclusively through the McDonald's App, the Super Sipper Meals can be ordered between 4 PM and 7 PM, adding an element of exclusivity and urgency for customers looking to grab the collectible while stocks last.

The meals are offered in two variants, catering to both vegetarian and non-vegetarian preferences. The Veg option, includes a McAloo Tikki Burger, Medium Fries, Small Coke, and Pizza McPuff. The Non-Veg variant, features a McGrill Burger along with Medium Fries, Small Coke, and Pizza McPuff.

Commenting on the reintroduction, Rajeev Ranjan said the overwhelming response to the earlier launch highlighted customers’ interest in unique and engaging experiences. He added that the brand remains focused on delivering offerings that combine value, taste, and memorable moments.

Operated by Connaught Plaza Restaurants Pvt. Ltd., McDonald’s India – North and East continues to strengthen its presence with over 295 restaurants and 190+ McCafé outlets across the region. The brand’s latest offering reflects its ongoing effort to create experience-led promotions that go beyond traditional value meals.

By combining everyday favourites with collectible merchandise, the reintroduced Sipper campaign aims to enhance customer engagement while driving digital adoption through its app ecosystem.


Ambience Mall Gurugram Welcomes CoCo Ichibanya to Its Dining Line-Up

Ambience Mall Gurugram Welcomes CoCo Ichibanya to Its Dining Line-Up

By Manu Vardhan Kannan

Published on April 7, 2026

CoCo Ichibanya has opened its new outlet at Ambience Mall Gurugram, adding a global flavour to the mall’s growing food and beverage offerings. Located on the third floor, the restaurant spans around 3,000 sq. ft. and can accommodate up to 52 guests.

Founded in 1978 in Japan, CoCo Ichibanya is known as one of the world’s largest Japanese curry chains. The brand is popular for its curry-and-rice dishes, offering a mix of consistency and customisation, allowing diners to personalise their meals based on taste and preference.

The launch is part of Ambience Mall Gurugram’s ongoing effort to strengthen its dining portfolio by bringing in well-known international brands. With this addition, the mall continues to expand its options, offering both everyday dining choices and unique global experiences to visitors.

Speaking on the occasion, Arjun Gehlot, Director, Ambience Group, said, “Consumer preferences today are evolving towards experiences that feel both authentic and globally relevant. CoCo Ichibanya brings a strong international identity along with an offering that is approachable and versatile. At Ambience Mall, our focus remains on curating a balanced and contemporary mix, and this addition further strengthens that direction.”

With the opening of CoCo Ichibanya, Ambience Mall Gurugram further builds its position as a destination that blends retail with curated dining and lifestyle experiences, catering to a modern and globally aware audience.

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