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Production of Alcohol from Grains. Grain Alcohol Distillery Project. Food-Grain Based Alcohol Industry. Distilled Spirit - Alcoholic Beverage

Saturday, October 28, 2017

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Grain based alcohol is used for the production of white spirit such as gin and vodka but also as a base for a wide range of flavoured alcoholic beverages. The production of neutral alcohol from malt, grape, apple or sugar has considerably increased over the last few years. There may be local alcohol taxation advantages. This is available in a ready-to-pitch, active form, with proven cost effectiveness versus propagation.

Extra-Neutral Alcohol (ENA) is an ethanol grade of 96% purity or higher. Its main use is as the base ingredient in the production of alcoholic spirits.

The Extra Neutral alcohol or ENA is a high distillated alcohol without any impurities and others destined to be used in the high cosmetic industry, perfumeries as well as for the production of alcoholic beverages such as whisky, vodka, gin, cane, liqueurs and alcoholic fruit beverages and aperitifs.

Till now, molasses is used as raw material for alcohol production. Molasses, a by–product from cane sugar processing, is brownish black in colour with an extremely strong odour. It is used for its sugar content, either as an ingredient in cattle feed or for production of alcohol. Some of the derivatives from alcohol that have been in commercial production are based on molasses as a raw material. Molasses based distilleries produce effluent, which has high BOD/COD as well as dark brown colour and is very difficult to treat. Molasses production in the country is around 70 to 75 Lakh MT per annum. Some of the molasses is consumed to manufacture animal feed. If all of the molasses produced in the country were used for alcohol production, it would produce maximum 1,750 million liters of alcohol. The demand for alcohol in the country is expected to go up to almost 3000 to 3500 million liters by year 2012. Under such circumstances, raw materials other than molasses will have to be used for alcohol production. Though alcohol can be produced directly from sugar cane juice it is not an economic proposal because of its minimum statutory price. On an average, in Maharashtra, the landing price of sugarcane to the sugar factories varies from Rs. 2,000 to 4,000 / MT depending up on availability. In addition, it is a seasonal crop available for about 160 days in a year. Sugar cane cultivation also requires good irrigation facilities. If sugar cane juice is used directly for alcohol production, there will be no by-products produced except Bagasse.

There are some distinct advantages of using corn or sorghum for alcohol production. It produces a by-product called ‘Distillers Dry Grain with Soluble’s (DDGS)’ which can be sold as high protein containing animal feed.

Quality of alcohol produced from grains is far better than that produced from molasses and thus fetches higher price. CO2 produced during grain alcoholic fermentation after proper processing is of food grade quality. Maize or sorghum or bajara crop cultivation period is about four months and requires comparatively very less irrigation water

The process water requirement in case of a grain-based distillery is quite less than its molasses based counterpart, which ultimately saves cost component towards water charges.

 

Market Outlook

The Indian Made Foreign Liquor (IMFL) segment was estimated to reach a market valuation in excess of INR 1,400 Bn by 2016 end. This reflected a Y-o-Y growth rate of close to 5% over 2015. This segment is estimated to be valued at more than INR 3,000 Bn by 2026, expanding at a CAGR of 5.2% over the forecast period. Indian Made Foreign Liquor segment in the India alcohol market is expected to create absolute INR opportunity of close to INR 80 Bn in 2017 over 2016.

Rapid increase in urban population is one of the key factors that is boosting the India alcohol market.

GDP per capita income of the country for the year 2014 was pegged at more than US$ 1,595. The increase in per capita disposable income is expected to result in higher consumer spending on different lifestyle products and food and beverages, including alcohol. This increase is expected to drive the growth of the alcohol market in the country.

India is the biggest manufacturer of Alcoholic Beverages in the world. Alcoholic Beverages market is matured in India over the years but still it is highly confined to limited varieties. There are around 10 million retail outlets and around 500,000 bars and pubs in the country. In past 5 years Alcoholic Beverages market witnessed a growth of 18.22% from 2010 to 2017.

Beer is a rapidly expanding segment in the Indian alcoholic beverages industry. It is the third largest market and second fastest growing market in the Indian alcoholic beverages industry. Beer market has been segmented into strong beer and mild beer on the basis of their alcohol content. Strong beer which has alcohol content more than 5%, dominates the Indian market stating its popularity and preference.

ENAmarket in India reached a volume of more than 3 Billion Litre in 2016, exhibiting a CAGR of around 6% during 2010-2016. A colourless food grade alcohol, ENA contains 96% alcohol by volume (ABV). It has a neutral smell and taste, and is derived from various sources such as sugar cane molasses, grains, denatured spirit, etc. ENA is a high distilled alcohol that contains no impurities and is used for the production of alcoholic beverages, alcoholic fruit beverages and aperitifs. Owing to its properties, it serves as an essential ingredient in the manufacturing of numerous cosmetics and skin care products, as a processing aid in food industry, and as a solvent for colourants and flavours.

Almost 90% of the ENA produced in India is used in the manufacturing of potable alcohol, production and consumption of which is continuously rising.

 

Alcoholic Drinks Whisky (Branded)

Demand: Past and Future

Year

(In Million cases)

1990-91

23.75

2000-01

42.00

2001-02

44.70

2002-03

47.65

2003-04

50.90

2004-05

54.45

2005-06

58.50

2006-07

63.30

2007-08

69.60

2008-09

77.50

2009-10

87.60

2010-11

100.75

2011-12

114.25

2012-13

125.45

2013-14

137.76

2014-15

151.28

2015-16

165.65

2016-17

181.39

2017-18

198.62

2018-19

217.49

2019-20

238.15

2024-25

380.07

 

Vodka is the fastest growing IMFL segment in India. Its growth is rapidly increasing due to increase in pubs, hotels, restaurants, evolving nightlife and consumer preferences. It has grown over the past 4 years at a CAGR of 19.3%.

The rising number of teens entering in the legal drinking age every year along with surging disposable income has resulted in financial independence and increased spending on food and beverages.

 

Beer

Demand: Past and Future

Year

(In '000 Kilolitre)

1990-91

201

2000-01

528

2001-02

565

2002-03

632

2003-04

676

2004-05

723

2005-06

780

2006-07

1150

2007-08

1300

2008-09

1500

2009-10

1688

2010-11

1851

2011-12

1950

2012-13

1990

2013-14

2048

2014-15

2150

2015-16

2268

2016-17

2393

2017-18

2527

2018-19

2665

2019-20

2812

2024-25

3760

 

Beeris a rapidly expanding segment in the Indian alcoholic beverages industry. It is the third largest market and second fastest growing market in the Indian alcoholic beverages industry. Beer market has been segmented into strong beer and mild beer on the basis of their alcohol content. Strong beer which has alcohol content more than 5%, dominates the Indian market stating its popularity and preference.

In 2016, consumption of beer in India was 4.6 litres per capita as against 57 litres per capita of fast-growing economies in Asia.

Global beer market is expected to garner $688.4 billion by 2020, registering a CAGR of 6% during the forecast period 2015-2020.

India’s wine market was growing with a CAGR of 16.29% over a period of four years.

The demand of both the domestic and foreign wines has been growing day by day. There is enough room for each and every wine brand, be it Indian or foreign, in the Indian market as the market has registered a significant percentage of growth in both volume and value terms in recent years.

Consumption of red wine is expected to grow from accounting for 61% of total wine consumption in India to 71.6% in 2017.

India ranks 77th in terms of world wine consumption. The per capita consumption in India is only 20 ml per year. India consumed 0.8% of total wine consumed in Asia.

India exported almost 20 lakh liters or 10% of total production in 2015. India’s wine export was calculated to be around Rs. 80 crore and is expected to increase to Rs. 500 crore in next five years.

 

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Tags

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