Wine Industry India

*Click here to buy the complete report, below is just an executive summary

Executive Summary

Imagine starting a winery for just $44,000 in a country where the wine industry is growing at a rate of 25% to 30%.

Yes, the Wine Industry of India is at the introduction stage of its life cycle and a small winery can be started in India with an investment of about $44,000. Required know-hows and machinery are available locally.

For the year 2008-2009, the wine consumption in India was only about 13.3 million litres or 1.5 million 9-litre cases at a value of $82 million. At a per capita level, the consumption was about 9 millilitres annually. In the same year, the world wine consumption was 2.6 billion cases. The size of the Indian wine market is small when compared to global consumption and annual per capita consumption of 70 litres in France and Italy, 25 litres in the US, 20 litres in Australia and 40 millilitres in China.

The prospects of growth for wine in India are quite high. About 600 million Indian’s are currently below the legal drinking age and 100 million will come of that age over the next 3 to 4 years. So, the consumption of alcoholic beverages such as wine is expected to increase. In spite of India’s high import tariffs on wine, this country was one of the world’s fastest growing wine markets. Until the year 2008-2009, growth was about 25% to 30% every year.  However, sales fell in the year 2009-2010 for the first time since 2001. Wine exporters blame the slump on the 26/11 Mumbai terror attacks two years ago that led to a dip in tourism in India. Despite the recent setback, consumption of wine in India is projected to increase to 2 million cases by 2011 and 4 million cases by 2015.

It is critical to note that, the level of tax burden for both local winemakers and importers of wine is high. Control over selling, distribution, and pricing of wine belongs to state governments. Each of India’s 28 states and 7 union territories has its own rules and regulations for sale of alcohol. In some states an imported wine may cost almost 4 to 5 times of its price, with over 50% of its revenue shared between various levels of government. A wine bottle that leaves France at three euros (under $4) is sold in India at approximately 15 euros (about $20).

However, states like Maharashtra, Karnataka and Himachal Pradesh have taken steps to encourage wine industry and given preferential treatments by liberalizing their excise regime and reducing excise duties.  Eighty precent consumption of wine in India is confined to major cities such as Mumbai (39%), Delhi (23%), Bangalore (9%) and Goa (9%).

The supply chain of the wine industry in India is fairly linear. Winemakers are the key to the supply chain and they record good profits. The key to success in the wine business is branding so, a substantial chunk of dollars are spent in selling and distribution. It is also critical to note that, promotion of alcoholic beverages is prohibited in India. So, winemakers use strategies such as surrogate marketing and creating economies of scale.

Success in the wine business in India is conceivable if you do the hard yards of government regulations and have the right marketing mix.


Table of Contents

Industry Definition

Wine Making Process

Key Statistics

Supply Chain

Segmentation

Market Characteristics

Industry Conditions

Key Competitors

Key Factors

Appendices

References


Log In if you have already paid.

 

 

Follow us

News - Wine India

  • Gerhard Richter created the new Château Mouton Rothschild wine label
    Famous for his “photo paintings” of portraits, still-lifes, and landscapes, with their characteristic “blur”, German artist, Gerhard Richter (pictured, left) is a master of abstract style, a virtuoso who plays with all the possibilities offered by photography.  Constantly seeking renewal, since 2011 Richter has developed a technique of painting under glass, which he calls Flux, that [...]
  • Château Mouton Rothschild 2015 label – new illustration
      Every year since 1945 a great artist has illustrated the label of Château Mouton Rothschild, bringing together the most famous names in contemporary art in a collection to which a new work is added each year. Apart from the exceptional quality of the 2015 vintage and the fact that the German artist Gerhard Richter [...]
  • Cava Cava
    On a visit to Catalonia in Spain, Vikram Achanta takes a train to Cordorníu winery, the world’s oldest and second-largest producer of bottle-fermented sparkling wine. As I roll through the Catalan countryside by train with the Pyrenees in the far distance, the town of Sant Sadurní d’Anoia announces itself via grape-laden vineyards. As the train slides into [...]
  • Story in the bottle
    Wine is more than just liquid in the bottle. It carries within it the strength and story of the terroir, the passion and love of the winemaker and the many untold tales of its journey from the vineyard to the bottle. “It is our endeavour to present some of these stories to wine lovers”, said [...]
  • How new generation wines achieved cult status in Napa Valley
    Raj Ahluwalia, MD, on the fascinating story of new-generation winegrowers who took on the old guard and now find themselves turning into “classics”.   Napa Valley, where Bordeaux varietals (including cabernet sauvignon) still dominate the landscape, came into prominence as a premier grape growing region in the 1970s following the Judgement of Paris which saw them preferred to French wines in [...]
  • Auriga – the first Indian sparkling wine with gold flakes
      November 2017: To celebrate 25 glorious years of winemaking, Grover Zampa Vineyards recently launched Auriga – India’s first sparkling wine with gold flakes. An extravagant addition to indulgence and celebration, the gently aged wine with a dusting of old flakes has been described as the epitome of finesse and craftsmanship. Lemony gold in colour, the wine has [...]
  • Vinexpo expands beyond its shores
                                                                                      October 2017 – Vinexpo is launching a new Paris event in 2020 as part of the [...]
  • Renaissance of L’Academie du Vin
    On the evening of October 24th, 2017, at 67 Pall Mall,  Steven Spurrier hosted a Master Class to announce the renaissance of L’Academie du Vin, the Paris wine school that he created in 1973 and which gained worldwide fame for hosting the tasting of wines from California and France which became known as “The Judgement of [...]
  • Winegrowing in Armenia, a historical view
      Winegrowing in Armenia dates back to Biblical times. It is stated in the Book of Genesis, that in 1657 (2104 BCE) God’s chosen one, Noah, after disembarking from the Ark which saved him and all the other creatures from the great Flood, was tasked with restocking a denuded earth, writes Kanika Dhawan. The Ark came [...]