Pernod Ricard, the company behind popular brands such as Chivas Regal, GlenlivetIt is absolute, expressed his conviction that India will overtake the United States to become its largest global market. Although no specific period has been mentioned, India currently contributes more than 10% of the Pernod Ricardglobal revenue of INR 12.1 billion and almost a third of its global sales volume.
According to Jean Touboul, Managing Director, Pernod Ricard India, the country's strong macroeconomy makes it an attractive market for growth. He told ET that they are growing at a faster rate than many of the group's other affiliates. “We are growing faster than many other affiliates in the group, and I hope it is because we do good work, but I don't want to undermine the work of my colleagues in other countries. It’s a market where the raw potential is much greater,” he said.
Touboul highlighted reasons for India being among the fastest growing markets, including a favorable macroeconomy, a growing population of individuals of legal drinking age and a demographic dividend. He emphasized that India is considered one of Pernod Ricard's “must-have” countries, alongside the US and China.
In the last fiscal year, Pernod Ricard's India revenue rose 10% to Rs 25,142 crore, although net profit declined 8% to Rs 1,343 crore due to higher taxes and promotional expenses.
Despite having a minimal presence in the mass segment, Pernod Ricard controls about a quarter of India's total whiskey market. The company's success is mainly driven by its premium and semi-premium brands such as Blenders Pride, Royal Stag, Imperial Blue. The company also has the best-selling Scotch whiskey in India, 100 pipers, which sells more than 1.5 million cases annually. However, Pernod Ricard faces increasing competition from players such as Diageo, Beam Suntory and local brands such as Amrut and John Distillers in the higher price segments.
Read from ET | Pernod Ricard India plans
Touboul recognizes the complexities of the Indian market, but remains optimistic about the competition. He believes that the entry of more players into the market will increase the offer to consumers, which, in turn, will attract more people to their products.
“I'm not afraid of competition. I'm happy that more players are coming in and helping to increase the offer to consumers, and all of us, as an industry, can attract more and more consumers to our products,” said Touboul.



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