German drink will be made in India

Four months after launching the world's second-largest energy drink brand, Effect, in India, MBG International Premium Brands of Germany is planning to start its manufacturing here.

While a full-fledged bottling unit is at least a year away, the MBG has decided to make its bottling facility in India a base for servicing the growing markets in the Asia-Pacific.

"In terms of size and growth potential, India is an 'A' market for us," said Mirko Ranz, export director, MBG.

The Indian energy drink market, however, is yet to reach its full potential, currently pegged at 15,000 cases. It is projected to grow to 25,000 cases by the end of this year.

The Indian market holds tremendous potential for a life-style product like an energy drink, according to the promoters. "The size of a very evolved market like Austria, where per capita consumption of energy drinks is around 7, is only 16 million potential buyers.

The national capital region (NCR) is a bigger market than this, " said Jeetendra Dharewa, director, SMD International, the Delhi-based firm that has exclusive import rights for Effect in India.

The market leader in India, like in most parts of the world, is Red Bull. "There are sundry brands, numbering over 30, that are imported in small quantities," said Dharewa.