Wine Industry India

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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



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News - Wine India

  • WOSA Sommelier Cup attracts Asian sommeliers
    Held every three years, the competition is for sommeliers and professionals working in the wine service industry to compete for the Sommelier Cup title in the finals in South Africa. The competition is now open to entrants across Asia to complete an online exam initially, before shortlisted candidates will be invited for a blind tasting test held in Hong Kong in mid-July this year. Asian countries eligible to enter are: Hong Kong, Macau, China, Taiwan, South Korea, Singapore, Malaysia, Thailand and Indonesia. Asia’s two finalists in the 2013 competition were Jordi Chan, wine director of restaurant group, Drawing Room Concepts in Hong Kong and Christian Zhang, sommelier from Noahs Yacht Club on the Bund in Shanghai. Last year’s finalists Christian Zhang and Jordi Chan Zhang said: “This was my very first experience of the sommelier competition, and it opened my eyes to the wine of South Africa and gave me the chance to go to Western Cape, which in my heart, is the most beautiful wine land that I have ever seen so far, including Cape Point, Table Mountain and Walker Bay. “The competition in Cape Town left me a deep impression about the distance between me and other contestants. [...]
  • Oz Clarke joins NZ Wine Hall of Fame on Intnl Sauvignon Blanc Day
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  • Reveilo wines bag awards in Hong Kong at Asia Wine Review 2016
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  • Wine, Hasty Pudding and Pie
    Hasty Pudding Theatricals: Kerry Washington throws wine at an actor impersonating Donald Trump April 2016 If you were thinking of throwing wine on a person’s face will the quality of the wine in your hand determine whether you would actually go ahead with the act? asks Raghu Bahadur in his column this month in Sommelier India magazine.  There could be other factors, too, that may influence your decision, but let me explain what led to this question in the first place. Harvard University’s Hasty Pudding Theatricals (HPT), America’s oldest college theatre group, makes its annual “Woman of the Year” award to a recipient who has distinguished herself in some area of public endeavour. The winner for 2016 was the actress Kerry Washington, winner of several awards for her role in the TV serial, Scandal. The award ceremony includes a ride through Boston’s streets in a Bentley convertible, with the winner surrounded by actors in multi-coloured drag. On the stage, after being subjected to a good-natured “roast”, Kerry did a lot of goofing around in keeping with the irreverent mood, not to say contemporary mood, ending up by throwing a glass of red wine squarely in the face of an actor [...]
  • Climate Change – Good or bad for wine?
    Harvest at Camel Valley in Cornwall – a rising star for sparkling wine In March I gave several talks in Tokyo to Japan’s exceptionally numerous and exceptionally polite wine lovers in which I extolled the newfound virtues of English sparkling wine, writes Jancis Robinson in her column in the April edition of Sommelier India magazine. If anyone had told me, even as recently as 20 years ago, that I would be doing such a thing, I would not have believed them. When I started writing about wine in the 1970s I was solemnly told that Asians would never embrace wine, that there was something about their physiology that would always prevent them from appreciating fermented grape juice. At that stage Asia was admittedly in thrall to beer and spirits but nowadays some of the most dynamic markets for wine are in Asia. And just before flying east I had, as usual, acted as a judge in the annual Oxford v Cambridge wine tasting competition. All the top-performing blind tasters had been of Asian origin, as have been many of the WSET top students recently. But if the map of the world’s wine consumers has changed radically over the last few decades, [...]
  • Biodynamics in winemaking, A Global Trend
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  • The sixth edition of World Malbec Day celebrated in Mumbai
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  • Recently in India, Etienne Hugel ambassador of Alsace wines passed away in April 2016
    Etienne & Kaoru Hugel at a dinner in Chennai, India. The international wine world had barely recovered from news of the untimely passing away of Paul Pontallier (59 years), Managing Director of Château Margaux, in Bordeaux, followed by Burgundy legend, Louis Latour of  Maison Latour (83 years) when we heard about the sudden demise of another wine personality in France. The news of Etienne Hugel’s passing away last Saturday, on the 9th of April came as a huge shock. Etienne, commercial director of his family winery, spent three weeks in India recently with his wife, Kaoru, leaving an indelible impression on the minds of Indian wine enthusiasts with his warmth and keenness to promote the wines of Famille Hugel wines (formerly Hugel & Fils) in India. Etienne was born in 1958 and is the 12th consecutive generation to be running the family business. A member of the prestigious Primum Familiae Vini (First Families of Wine), Famille Hugel’s history as wine producers goes back to the 14th century. In 1639, Hans-Ulrich Hugel left his native Switzerland to escape the horrors of the Thirty Years’ War and decided to settle in Riquewihr, at the heart of the Alsace wine growing region. Alsace became apart of France again [...]