Mahua Oil and Country Liquor production business. Profitable business ideas in Alcoholic Beverage Industry

Mahua is an alcoholic drink made out of flowers of the mahua tree and is a popular summer drink. The drink would be mostly sourced from Bastar and sold under the brand name Mahua. Besides this, the government is also planning to sell de-seeded tamarind and amla as candies and jams

Mahua longifolia is an Indian tropical tree found largely in the central and north Indian plains and forests. It is commonly known as mahuwa, mahua, mahwa, mohulo, or Iluppai or vippa chettu. It is a fast-growing tree that grows to approximately 20 meters in height, possesses evergreen or semi-evergreen foliage, and belongs to the family Sapotaceae.

It is adaptable to arid environments, being a prominent tree in tropical mixed deciduous forests in India in the states of Odisha, Chhattisgarh, Jharkhand, Uttar Pradesh, Bihar, Maharashtra, Telangana, Madhya Pradesh, Kerala, Gujarat, West Bengal and Tamil Nadu. Mahua seeds are of economic importance as they are good source of edible fats. Flowers have been traditionally used as cooling agent, tonic, aphrodisiac, and astringent, demulcent and for the treatment of helminthes, acute and chronic tonsillitis, pharyngitis as well as bronchitis.

Uses

Mahua Oil. Mahua oil has emollient properties and is used in skin disease, rheumatism and headache. It is also a laxative and considered useful in habitual constipation, piles and haemorrhoids and as an emetic. It is inexpensive and the production is largely done in home stills. The Mahua tree is a very important source of food for the Gonds and other tribes in Central and Western India. They are also used for making alcohol, vinegar, syrups and jams. Mahua oil is largely used in the manufacture of soaps, besides cooking.

The Mahua tree is a very important source of food for the Gonds and other tribes in Central and Western India. They are also used for making alcohol, vinegar, syrups and jams. Mahua oil is largely used in the manufacture of soaps, besides cooking. Mahua flowers and seeds have healing Power and Curative Properties, used in Bronchitis, Rheumatism, Diabetes, Piles, Arthritis, Problem of Breast Milk Secretion, Bleeding Gums, Tonsillitis, Eczema, and Skin Disorders. Mahua flowers are also considered good for cooling, and are used as a tonic and demulcent.

Market outlook

India presents a huge growth potential for alcoholic and nonalcoholic beverages sales. Increasing GDP, favourable growth in the demographics with a growing urban middle class, growth of modern retail formats, hopeful rationalization of the taxation rules and ban on local Mahua Oil and rising health consciousness, age preferences will act in favors of the growth of both alcoholic (specially beer) and non-alcoholic (specially fruit juices, energy drinks etc.) beverages in India in the near future.

Mahua Oil industry has always remained under strict governmental control in terms of capacity creation, distribution, taxation. While overall public perception spells restraint, it is the symbol of high life even in puritan India. The industry poses a dilemma to the state. It cannot resist the temptation of large revenues, while steering clear of the embarrassment of giving encouragement to drinking. A positive feature of allowing the industry to grow and operate is the prevention of illicit production and drinking.

Global Mahua Oil market, which had a valuation of US$1,435.25 bn in 2013, will expand at a 4.3% CAGR over the period between 2014 and 2020 and reach US$1,937.73 bn by 2020. In terms of volume, the market is expected to expand at a similar 4.9% CAGR, propelling the consumption of Mahua Oil from 912.77 bn liters in 2013 to 1,289.03 bn liters by 2020.

The global alcoholic beverages market is anticipated to display moderate growth rate over the 2015-2021 period. The consistent sales of all the product segments (spirits, wine, and beer) have led to the positive growth of the global market over the last few years. Alcoholic drinks market during the forecast period and will occupy around 48% of the total market share by 2020.

The growth trends in packaged Mahua Oil and a growing demand is indicative of the fact that Mahua Oil and its variants will be the single largest beverage category, growing and becoming at least 20 times of the current market size within the next 10-12 years.

Key player

Cargill Incorporated, Grain Processing Corporation, Croda International, Akzo Nobel NV, Bayer AG, Ajinomoto Company Incorporated, Henkel KGaA, and Associated British Foods A D L Agrotech Ltd. Betul Oil Ltd., Chitali Distillery Ltd., Co-Operative Company Ltd. Frost Falcon Distilleries Ltd. G M Breweries Ltd. Great Galleon Ventures Ltd. Hyderabad Distilleries & Wineries Ltd. Lords Distillery Ltd. N V Distilleries Pvt. Ltd. Piccadily Sugar & Allied Inds. Ltd. Rangar Breweries Ltd. S K G Consolidated Ltd. Sethia Oil Inds. Ltd. V V V & Sons Edible Oils Ltd. Veekay Distilleries Ltd.

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