JIL’s Devender Gulia decodes Indian alcobev industry’s road to premiumisation

Jagatjit Industries Limited (JIL) stands as a testament to over seven decades of legacy and innovation in the realm of spirits. JIL has embarked on a journey of revitalization and modernization, embracing technological advancements while honoring its rich heritage. JIL has carved a niche for itself in the global market, offering an extensive portfolio of premium spirits including Whiskeys, Gins, Rums, Brandys, and Vodkas. Renowned for its quality and customer satisfaction, JIL enjoys widespread recognition both domestically and internationally, with a strong presence in key regions across India and in numerous countries worldwide.

In conversation with Adgully, Devender Gulia, Director - Sales & Marketing, Jagatjit Industries, sheds light on the evolving demographic landscape, Jagatjit Industries’ market strategy, innovative marketing approaches implemented by the company, focus on innovation and fostering economic development, and more.

How do you perceive the evolving demographic landscape in India impacting the demand for premium alcoholic beverages, particularly within the context of Jagatjit Industries Limited's market strategy?

The alcohol industry has witnessed significant change and evolution recently, spurred with the elevating life standards, increased disposable income and changing preferences. The boom in premiumization and expansion of the beverage industry in India is a testament to the changing landscape. We at Jagatjit Industries are at the forefront of embracing the changes and meeting the customer’s demands by focusing on the quality products. Our marketing strategies have been driven by these factors which emphasize on the targeted approach and innovative marketing techniques to engage with our customers effectively. We are in the process of launching our premium offerings such as Royal Pride Whiskey, Royal medallion Brandy and King Henry Damn Good Scotch in a phased manner.

Could you share insights into the innovative marketing approaches implemented by Jagatjit Industries Limited to capture the attention of discerning consumers and drive brand engagement in a competitive market?

With the growing Indian economy and soaring cosmopolitan population, the alcohol industry is implementing various marketing initiatives to capture the customers’ attention and drive more engagement. We have been embracing the new marketing technologies which resonate with our target audience while adhering to the government guidelines. Recognizing the digital media dominance in this era, JIL is utilizing its potential to deliver impactful narratives to the customers. We are experimenting with the avenues of traditional marketing which includes investments in smart packaging, creating meaningful partnerships and loyalty programs. We are also exploring influencer collaborations to create relatable and engaging content to establish a strong brand recognition among our customers and stakeholders.

Considering the significant contribution of the liquor industry to India's economic growth, how does Jagatjit Industries Limited envision its role in driving industry innovation and fostering economic development?

Alcohol industry is one of the fastest growing beverage markets in the world and it has played a significant role in India’s economic growth. With increased urbanization and rising income, India’s alcohol industry is set to achieve another milestone fueled by the demand of premium products. With the powering economy and industry, we have ambitious growth plans to expand our market presence and leadership across India and beyond through the implementation of premiumisation, geographical expansion, strategic investments, and technology modernisation. We began construction on the 200 KLPD Ethanol plant and also launching premium offerings across Whiskey, Brandy and Scotch categories which will be a turnaround milestone in the next phase of growth.

In what ways does Jagatjit Industries Limited leverage consumer insights and market trends to develop and promote premium offerings within its portfolio, particularly in the context of shifting consumer preferences?

With thorough market research and vigilant monitoring of the evolving market landscape, we are leveraging the consumer insights while identifying new opportunities and formulating product development strategies. We entered two big states – Maharashtra and West Bengal – further growing the franchising model in key markets and earning revenues from brand royalties. With a strong push of premiumization, we are also revamping our brands and launching new premium products such as Royal Pride whisky and Damn Good scotch aligned with younger consumer preferences. One of the core focuses is reviving our presence across diverse regions like Assam, Kerala, West Bengal, Telangana, Maharashtra and Uttar Pradesh. We have made great progress in Assam, registering strong sales of 1 lakh cases in December 2023.

Could you elaborate on the strategic importance of the food division within Jagatjit Industries Limited, and how it complements the company's core business in the alcoholic beverages sector?

The food division within Jagatjit Industries Limited plays a strategic role in complementing the company's core business in the alcoholic beverages sector. By diversifying into the food segment, JIL leverages synergies, cross-selling opportunities, and operational efficiencies across its manufacturing & product portfolio. The division expands the company's market reach and enhances customer loyalty by offering a broader range of products and services.

How does Jagatjit Industries Limited balance traditional manufacturing processes with the adoption of modern technologies and sustainable practices to maintain its competitive edge in the market?

Jagatjit Industries Limited adopts a balanced approach by leveraging both traditional manufacturing processes and modern technologies to maintain its competitive edge in the market. The company combines the craftsmanship and heritage of traditional brewing and distillation techniques with advanced technologies such as automation, digitalization, and quality control systems. This integration allows Jagatjit Industries Limited to ensure product consistency, quality standards, and operational efficiency while preserving the authenticity and uniqueness of its offerings. Furthermore, the company is committed to sustainable practices, including energy efficiency, waste management, and water conservation, to minimize its ecological footprint and contribute to sustainable development.

As the Director of Sales and Marketing, how do you envision Jagatjit Industries Limited's growth trajectory amidst changing consumer behaviors and regulatory landscapes in the alcohol industry?

With our forward-looking initiatives and our meteoric approaches, I believe that we are poised to advance along the growth trajectory. We are in a very exciting time where the industry is facing dramatic changes and as the customers are constantly trying out new brands and flavors of different categories of alcohol instead of focusing on the traditional choices. For example, Indian single malts have outperformed imported single malts in sales volumes. As a part of NPD initiatives, we are planning to introduce Indian single malt and, in a process, to add more flavor to our existing portfolio. We will continue to leverage the ever-changing landscape of the Indian alcohol industry and cater to the preferences of our consumers. We will prioritize responsible marketing practices, compliance with regulatory requirements, and corporate social responsibility initiatives to build trust, credibility, and long-term value for stakeholders.