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


Market Characteristics

Industry Conditions

Key Competitors

Key Factors



Log In if you have already paid.



Follow us

News - Wine India

  • UK sparkling wine producer, Nyetimber launches second wine
    Nyetimber, England’s most celebrated fizz, has launched a second wine, called “N”. Presented in an eye-catching gold bottle with a Union Jack image on the front, and described as being “born in Mayfair”, the wine comprises around 60% chardonnay, 30% pinot noir and 10% pinot meunier grapes (the same grapes used to make champagne) sourced [...]
  • Mumbai gets a taste of South African Wines from Nederburg
    Aspri Spirits hosted an intimate women-only exclusive sit-down dinner in honour of  Andrea Freeborough, the lady cellar master at Nederburg wineries in South Africa. Set in the elegant Olive Bar & Kitchen in Bandra West, Mumbai, the lavish specially crafted four-course menu by Chef Rishim Sachdeva blended perfectly with “Nederburg The Winemasters’ Wines”. The menu [...]
  • Australian wines and Italian specialities make for a memorable dinner at Alto Vino in Pune
    Alto Vino, the fine-dining Italian restaurant at J W Marriott Pune, hosted a beautifully curated wine dinner paired with “Wines by Geoff Hardy”, South Australia. The company’s CEO, Richard Dolan, presented the wines and shared the winery’s journey with guests at a multi-course dinner, featuring signature specialties prepared by Chef Christian Huber. “Our winery was [...]
  • Dom Pérignon hits the jackpot at the 2017 Champagne & Sparkling Wine Championships
    Dom Pérignon 1998 P2 in Magnum has been named Supreme World Champion and Best French Sparkling Wine in the 2017 Champagne & Sparkling Wine World Championships (CSWWC). Trentodoc producer Ferrari Lunelli was crowned as Sparkling Wine Producer of the Year 2017 at the annual Awards Dinner in Vintner’s Hall, London. Founder and head judge Tom Stevenson said: “After [...]
  • Mumbai State Excise department issues orders to renew liquor licences
    State Excise department order paves the way for the renewal of nearly 80% of 15,699 licenses in urban areas suspended by the government in April this year, reports Satish Nandgaonkar in the Mumbai Mirror, September 5, 2017. Nearly 10 days after the Supreme Court issued a clarification that licensed establishments within municipal areas selling liquor [...]
  • Great quality, low yields – The Indian Wine Harvest
    The 2017 harvest in India produced grapes of top quality, writes Piyush Gadkari. This article originally appeared in the July/August issue of Sommelier India. When I initially set out to compile a harvest report for India’s top wineries, I didn’t know what to expect. With the shocking reports that were coming out of France – [...]
  • Tamil Nadu ups the legal limit of storing liquor at home
    The rules pertaining to storing liquor at home are nebulous and vary between states. Here’s the latest on Tamil Nadu as reported in The Economic Times. The Tamil Nadu government has increased the legal limit of storing alcohol at home to 12 bottles (750ml) of hard liquor, six each of Indian-made foreign liquor and imported [...]
  • Don’t give wine a bad name!
    Recently, in Visakhapatnam a group of women from the All India Democratic Women’s Association sat blindfolded in front of New Jalsa Wine shop in Santoshnagar, Tatichetlapalem to demand its shifting. They said that shops like Jalsa and others shouldn’t be near schools, temples or residential complexes. Also, the police should come to the aid of people [...]
  • Chandon India win bronze at CSWWC
    Chandon’s Brut and Brut Rosé won a bronze at the prestigious Champagne and Sparkling Wine World Championships (CSWWC) in the sparkling wine category this year.                                                              [...]