Domestic alcohol beverages industry expected to grow at 8-10% in FY25: ICRA
Rating agency ICRA in its latest report has said the domestic alcohol beverages (alcobev) industry is expected to grow in FY25 at 8-10 per cent along with an improvement in margins, helped by a moderation of raw materials prices. Indian-made foreign liquor (IMFL) companies are expected to witness 11-13 per cent revenue expansion supported by a preference towards premium products amid volume growth of 3-5 per cent on a high base of FY24.
Moreover, it said the revenue of the beer companies will witness a 9-11 per cent increase, helped by volume growth of 4-6 cent. ICRA expects beer to witness a good season in Q1 FY2025 in anticipation of a hot summer compared to the previous fiscal, which had encountered unseasonal rainfall.
Further, ICRA expects working capital requirements for the sample set companies to moderate in FY24 and FY25. In addition to that the funding requirements would also be lower in the backdrop of lower input prices led by correction in packaging costs.
