Changing Dynamics of the Southern Industry Market: Challenges & Opportunities

Ambrosia|December 2019

Changing Dynamics of the Southern Industry Market: Challenges & Opportunities
Mr. Uppiliappan G – Chief Sales & Marketing Officer, KALS Group gives a brief outline of his company and their marketing challenges in the South.

Kals Group was founded by a family of entrepreneurs’ from Karaikal (Puducherry State – Union Territory located in Tamilnadu, India) – With more than three decades of experience in Trading, Distribution, & Manufacturing of IMFL & Brewing. With four manufacturing locations located in Tamil Nadu and Karnataka, the company has a total capacity of 37 Million Cases per annum.

The KALS Group has evolved into a ₹3,000 crore company operating in seven states for beer and three states in IMFL. The company is the largest in the state in terms of size with five integrated manufacturing plants, five strategic global alliances for backward integration, sourcing and blending. It is the only brewery in India with 100% German technology. It is the only Brewery in India to comply with German Laws of Purity for Beer Manufacturing. The company has 25 Brands which have garnered over 23% market-share for premium products, informs Uppiliappan.

The brewery plant is fully automatic plant, installed with Krones, Germany and is the best in class in the country with end-to-end manufacturing. The Group has a Tie-up with Fitch (UK-based largest retail consultancy for product and brand development) and a strategic alliance with VLB, Germany (Berlin) which enables the Group to access latest knowledge and developments in the beer industry.

The alcobev industry in the Southern States includes Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana. The two states in the southern part of the country, i.e. Andhra Pradesh and Telangana are the highest alcohol consuming states in India. The population of these two states is not only ahead in consuming Indian Made Foreign Liquor (IMFL), but also gets high on country liquor. As a result the south zone holds close to half of the market share of the India alcohol market in 2018 and is expected to continue its growth in revenue contribution to the India alcohol market.

KALS Group of Companies include KDPL, KALS Distilleries Pvt. Ltd.; KBPL – KALS Breweries Pvt. Ltd., - Kallakottal, Pudukottai; KBVPL – KALS Beverages Pvt. Ltd. Walayar and Coimbatore; KDCPL – KALS Distilleries Carnataka Pvt. Ltd., Kunigal, Karnataka; Pearl Transport, Chennai and KALS International Trading FZE (UAE) 100% WoS of KALS.

The company's focus on quality is the reason why they have four plants certified for ISO 9001:2015, ISO 14001:2015, and ISO 22001:2015 (only organisation in India to receive all three certificates including Food Safety Management Systems for all the four manufacturing plants.

The company has a strong pipeline of exports into Singapore, Malaysia, Pan-Africa, and Middle East. It is the only brand from Tamilnadu to be certified as power brand in the liquor industry by Power Brands INC (UK).

The Group is in expansion phase after posting healthy results in both entities (KDL and KBL) and have a very low debt level. The Group has a rating of BBB+ and BBB for the two operating entities besides several accolades/recognition.

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December 2019