Lisa Srao, the founder of I Brands Beverages, talks to International Business Times India about her journey and how she conquered the alcohol industry, which is said to be one of the most frowned-upon industries, especially in India.
Here are the edited excerpts of the interview:
International Business Times: What is the liquor industry in India like?
Lisa Srao: India is the third largest global spirits market by volume in the world, just behind China and Russia. It is also one of the fastest growing markets in the world. The Indian alcohol industry focuses mainly on four types of alcoholic products: Indian Made Foreign Liquor (IMFL); Indian Made Indian Liquor (IMIL or country liquor); Beer; and imported liquor.
The IMFL category, in which all of I Brands' products lie, comprises brown spirits (whisky, rum and brandy) and white spirits (gin, vodka and white rum). Indians primarily prefer brown spirits (95 percent consumption by volume) over white spirits (5 percent consumption by volume). Whisky, interestingly, is the most popular drink among brown spirits and accounts for roughly 60 percent of the IMFL market
The alcohol industry in India, unlike other emerging economy, is still very traditional in nature and is largely controlled by Cooperatives and Independent Alcoholic Beverages companies. There are many companies in India but not unlimited, and the market is still moved by a few leading companies.
IBT: How difficult it is for a woman to succeed in the liquor business?
Srao: The liquor industry is getting more organised, which is a huge advantage today. In a few years, it will shift to being FMCG and retail driven, which is a tremendous thing that will make it easier for women to make a break in this industry.
Today it does not matter if you are a man or a woman, and I feel very proud to have contributed in a way for the industry to have reached this stage. Yes, there are going to be numerous challenges of setting up a business in this cut throat and this capital intensive industry, with regulations, taxes, excise duties and policies varying per state. But you need to plan ahead to be able to work through these. You need to have a strategic vision for the growth of the company, a unique product that exceeds customer expectations, a great team and an absolute understanding of the competitive market.
And, you have to be determined, motivated with great self-belief and to a certain extent, thick skinned. You have to love this industry and be passionate about it and be ready to bear the hurdles, with patience and a will to succeed.
IBT: What difficulties did you face while pursuing your dream and how much support did you receive from your family?
Srao: The liquor industry in India is incredibly challenging to enter, as it is a capital intensive industry and dominated by a few big players. We faced a lot of issues while setting up the company as I didn't have the kind of funds to play with that is the norm of the industry. Also, being an unknown company, we had a hard time getting distributors to work with us. Additionally, regulations in each state are also very different from the other in terms of excise duties, licenses required etc., which makes this business furthermore difficult. And to add to it, the industry is immensely male dominated. In the beginning, I always felt like I was in uncharted waters! Most people I spoke to about my vision, thought it was a mammoth task and told me that. When I approached people they would tell me I wouldn't be able to make it here. I had a hard time as nobody would take me seriously.
My team and I worked through these challenges. We strategically planned to take a slow and steady approach following a semi-urban, village-route in distribution, developing a solid base foundation in the states that we are present in, before opening up other states. We also perfected the blend of the products along the way as per the need of the consumer. Which is why all of I Brands products today are receiving a phenomenal response in the market. The same distributors who were reluctant to stock our products are repeated purchasing. Granton Whisky has limited market share in Haryana & Punjab, which are two of our biggest markets; we are also doubling turnover year-on-year and for a company to do that in just 5 years is a tremendous achievement!
I have been extremely lucky to have the support of my family during this. Since childhood, my parents always encouraged me to do anything that I wanted to do. My father is the one that engraved me and my sister with the thought that a woman can achieve anything if she is driven to do it. He is my mentor and I always seek his advice whenever required. My parents have been my source of strength throughout.
IBT: How do you balance your work life and family life?
Srao: Being an Entrepreneur, I think, offers flexibility in your schedule to maintain a very healthy work life balance.
I make sure that I spend enough time with my family. I generally make it a point to be with my kids in the evenings, helping them with their homework or having at least one meal with them. We also take two holidays in a year visiting our home in London, and my parents, which the children love. It is not an impossible task. You just have to efficiently plan your time and you will never really have to feel guilty about never spending enough time with them.
IBT: You have achieved so much at such a young age. Would you say there is a sense of completeness?
Srao: No. Not at all. I still feel that I am at the beginning of my journey. I have a lot to learn, a lot to achieve and a long way to go to fulfil my dreams for myself and I Brands Beverages
IBT: What advice would you give to women who want to venture into business or a startup?
Srao: To women who want to venture into a business of their own I would say the following:
- Don't look at it as a woman in a male-dominated field. Look at it as a business. You will succeed if you have a sound business plan, a strategy, a unique product and if you do your R&D properly so you are abreast of the industry.
- Always remember that the consumer is the king. Pay attention to the feedback and don't be afraid to tweak your product as per the need of the consumer.
- And, lastly, believe in your dreams, and be determined to make it come true!
I am very inspired by Steve Jobs and I am sharing something he said, which has become a motto or a mantra for me today - "The people who are crazy enough to think they can change the world, are the ones who do".
