Modi Illva set to disrupt BII Scotch Market

Riding on Rockford’s legacy to conquer the Scotch throne

The Indian alcohol beverage industry is not just a race; it’s a fiercely contested marathon of innovation, resilience, and strategic vision. Amidst this high-stakes landscape, Modi Illva India, under the dynamic leadership of Managing Director, Abhishek Modi, has emerged as a formidable contender. Over the past decade, the company has transformed into a ₹2,000 crore powerhouse, establishing a commanding presence in the premium spirits’ segment. With bold ambitions to become the third-largest alcohol company in India within this space, Modi Illva is not just aiming high, it is strategically positioned and accelerating with purpose. First with Artic Vodka, then Rockford Reserve and now Singhasan, the company is all set to create new milestones.

◉ Shalini Kumar 

India is predominantly a whisky market, contributing around 68 percent year after year. And that perhaps explains why many companies start their premiumisation journey with the spirit. However, Modi Illva followed a different trajectory, beginning with Arctic Vodka in 2010, a brand from their joint venture partner, Illva Saronno, before deciding to test the waters in the whisky category. “We were clear from the start that we wanted to launch a premium whisky. The initial foray into vodka, while perhaps a different starting block, provided crucial momentum and established Modi Illva’s commitment to quality within the Indian market,” says Abhishek Modi. His statement reflects a longterm vision and commitment. 

The real stride came in late 2011 with the introduction of Rockford Reserve. This premium Indian Made Foreign Liquor (IMFL) whisky struck a chord with consumers, its appealing packaging and well-crafted blend finding an appropriate spot between established premium players and entry-level Scotch. “It was an instant success,” Abhishek recalls. “People appreciated the packaging, the blend, and the fact that the market was ready for something premium,” he adds. Rockford Reserve quickly gained traction, followed by Rockford Classic in 2014.

Today, the ‘House of Rockford’ collectively moves 2.5 million cases annually, commanding nearly 20 percent market share in their operational states, just behind Pernod Ricard’s Blenders Pride. Artic Vodka too found its footing and continues to grow, particularly its cranberry variant in states like Uttar Pradesh, where their vodka business has seen a remarkable 200 percent growth year-onyear. Abhishek notes a shifting consumer preference towards flavoured vodkas, indicating a dynamic market.

Growing Reach

The company’s distribution network has expanded across 21 states and Union Territories, with the portfolio thoughtfully extended. Artic Vodka now boasts a cranberry variant in a distinctive pink bottle, while Rockford Reserve and Classic are easily identifiable in green and brown respectively. Hoxton, a semi-premium whisky, was later introduced, strategically placed alongside Royal Stag. But the latest chapter in Modi Illva’s premium story is the launch of Singhasan, a premium blended whisky priced to compete directly with the likes of 100 Pipers.

Singhasan is India’s first premium 100 percent blended whisky crafted entirely from Indian malt and grain spirits, a bold statement in a market traditionally reliant on Scotch blends for its premium offerings. “It’s been a great journey, profitable and rewarding,” Abhishek states, the numbers backing his sentiment with a remarkable 55 percent CAGR since 2010, and a staggering 78 percent growth for the House of Rockford.

The decision to launch Singhasan directly addresses the question of why Indian consumers should remain solely dependent on Scotch blends. “The early reception since its full rollout in April has been very encouraging, indicating a consumer appetite for experimentation and a pride in embracing Indian craftsmanship,” Abhishek informs.

One for the Throne

Singhasan is a strategic move to solidify the company’s premium positioning and cater to the growing confidence in Indian spirits. With higher malt content than most whiskies in its category, it offers exceptional depth, richness, and a velvety finish. Furthermore, as it’s wholly Indian, it avoids the heavy duties Scotch attracts, making it a high-quality yet value-driven offering.

Consumer is King

Reflecting on the evolution of the Indian alcohol beverage industry since 2010-11, Abhishek highlights a significant transformation in the consumer mindset. Initially, Scotch-centric consumers were drawn to the ‘imported’ tag, but now the market has started witnessing a surge in the acceptance and pride surrounding Indian-made premium spirits. The successes of Indian single malts, spearheaded by brands like Amrut, and the emergence of premium Indian gins, have paved the way for brands like Singhasan. “Back then, in the premium space, it was just us and the multinationals. Now, many Indian companies operate in the luxury segment, competing directly with global brands. The consumer is open to trying Indian brands because they have seen that Indian companies can deliver globally competitive products,” Abhishek explains.

Modi Illva is evolving in tandem with this shift, with plans to launch a full range of premium products. “That’s what Singhasan represents,” Abhishek asserts. “It’s our first purely Indian blended premium whisky, competing with Scotch. The positioning of Singhasan as India’s first premium blended whisky crafted against Scotch, using only Indian malt and grain spirits, taps into the growing popularity of Indian single malts.” He cites how Indian single malts now constitute 50 percent or more of the premium malt space in India. “So, if Indian single malts are already being accepted at the malt level, and if you have created a good product with strong packaging, a solid blend, and a well-thought-out marketing and distribution strategy, I don’t see why the consumer would have any concern with blended whisky,” he points out.

The recent entry of international giants like Pernod Ricard and Diageo into the Indian single malt category further validates the strength and future of Indian spirits, a narrative that Abhishek believes extends beyond domestic borders to a global stage, encompassing Indian malts, gins, and even the untapped potential of Indian rum. The primary target audience for Singhasan is the 25-35-year-old demographic – first time drinkers, young professionals – as well as current Scotch drinkers looking to trade up to a premium Indian brand they can be proud of. There is also another trigger in the form of the mantra of ‘drink better’ post the pandemic.

Regulatory Challenges

However, the race hasn’t been without hurdles. Abhishek points to the ‘two biggest challenges’: the labyrinthine pricing policies that vary wildly across states, sometimes preventing price adjustments, and the persistent bureaucracy and regulation that can stifle industry progress. As a board member of Confederation of Indian Alcohol Beverage Companies (CIABC), Abhishek is actively involved in advocating for change, emphasising a need for a more consumer-centric approach from policymakers. Despite these roadblocks, Modi Illva has learned to navigate the system. “Creating strong brands, highquality liquid, and exciting new expressions for consumers,” is how Abhishek puts it.

 Abhishek acknowledges the ‘yes and no’ nature of government policy progression, comparing the Indian states to individual countries in Europe, with varying levels of openness. However, he sees a positive trend towards a more business-centric approach at the national level, with initiatives like ‘Make in India’ gaining traction. “Singhasan is a salute to that idea,” he declares, questioning the necessity of relying solely on Scotch when quality Indian alternatives can be produced. 

Marketing Moves

The company’s marketing strategy adapts to the nuances of different city tiers. In Tier 1 cities, visibility in larger outlets is key, while Tier 2 and 3 cities rely more on promotions, tastings, and strategic outlet activations to build awareness and drive trials. Digital platforms play an increasingly important role across all the tiers in educating consumers. The success of Indian single malts and gins has already laid the groundwork, making the consumer more receptive to premium Indian offerings like Singhasan. Having just launched in major markets across India, Singhasan will have strong presence in its operating markets across the country, building on encouraging test market responses.

Abhishek’s goal is to capture at least 5 percent of the Bottled in India (BII) segment in next five years; a benchmark he believes will pave the way for organic growth. Reflecting on the performance of Rockford whisky and Artic Vodka, Abhishek confirms their exclusive availability in India, primarily due to consistently high domestic demand. Rockford currently holds a strong 20 percent market share in its segment, while Artic Vodka, despite a more state policydependent market, enjoys a 10 percent share in several states, performing even better in Delhi. Artic Vodka has seen a healthy CAGR of 15.8 to 16 percent since 2010, and Rockford has cultivated a loyal and ‘sticky’ customer base.

Abhishek shares anecdotes of enthusiastic customer feedback, including late-night calls expressing appreciation for Rockford’s quality and a friend from the defence sector preferring it over higher-priced international brands. He highlights that industry recognition instills confidence in Indian companies to venture into the premium segment, laying the foundation for the current rise of premium Indian spirits.

In the Long Run

Looking ahead, Modi Illva aspires to become the thirdlargest alcohol company in India within the premium segments. Their expansion plans include launching a range of premium and super-premium products to compete with imported brands, with Singhasan being the first step. They are also building a malt distillery, signalling their intention to enter the single malt category in the future, and are exploring opportunities in rum and gin. Furthermore, Modi Illva plans to leverage its existing distribution network to introduce an imported spirits’ portfolio, with a potential launch in the coming year.

Abhishek stresses their focus on building capabilities, setting high internal quality standards, and establishing a strong foundation before launching super-premium expressions, including their own single malt, after their distillery is ready later this year. This measured approach prioritises quality, infrastructure, and long-term sustainability over rushing into the market.