Extravagant: Radhika Merchant married the son of India’s richest man earlier this year
Diageo is benefiting from the boom in so-called ‘Big Fat Indian Weddings’.
In India, one of the FTSE 100 drinks giant’s fastest growing markets, weddings are often huge affairs that last several days and take place in multiple locations.
The marriage earlier this year between Radhika Merchant and Anant Ambani, the son of Asia’s richest man, Mukesh Ambani, brought this kind of extravaganza into the global spotlight.
The multi-million dollar festivities included a performance by pop star Rihanna and a guest list of 1,200 guests ranging from tech moguls to former world leaders.
Diageo said it had worked on more than 70 celebrity and billionaire weddings in the past year alone, with pop-up bars serving its brands and personalised bottles providing a huge money-making machine for the group.
Indian celebrations are known for their heavy alcohol consumption. Weddings are often elaborate with special drink menus featuring expensive spirits.
Whisky is one of the most popular drinks in India. Godawan single malt is particularly popular, an Indian whisky that costs around £35 per bottle.
The Indian wedding industry is worth an estimated £98 billion a year – twice the size of the US market. The typical luxury wedding in the country costs between £180,000 and £272,000.
Hina Nagarajan, CEO of Diageo India, said sales in her region showed no signs of slowing, thanks to a young and increasingly affluent population. Not only is India poised to have the third-largest number of high-income households globally by 2030, but it also has an average age of just 28.
Nagarajan said women, traditionally abstinent, now make up 40 percent of India’s premium spirits consumers, up from 25 percent just two years ago. Diageo’s India business has grown by 50 percent in three years. Sales rose 14 percent last year to just over £1 billion and profits rose 53 percent to £196 million.
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