BUSINESS COMMUNICATION

 PRESENTED TO:-Mrs. MANISHA MENDIRATTA

 PRESENTED BY :- ANSHUL,SANJEEV, VISHAL
 WINE
 WINE IS AN ALCOHOLIC BEVERAGE
WHICH IS PRODUCED BY THE
FERMENTATION OF FRESHLY GATHERED
GRAPE JUICE.
GENERALLY THESE ARE OF 2 TYPE
 STILL WINES(without carbonation)
 SPARKLING WINES(carbonated)
MAJOR PLALYERS
There are three major players in the Indian
wine industry which dominate 90% of the
total market share .These are :

Indage wine group

Sula wine group
Grover wine group
Vintage Wines
UB Group
 Indage Wines
 Based in Narayangaon
- on the Pune-Nashik
Road, is counted
amongst the leading
Indian wine brands,
both in volume as well
as valuation. 'Marquise
de Pompadour' brand
of Indage was
launched in 1986,
while the famous
'Chantilli' came out in
the year 1989. The
wine brand was the
first to make wines
that were 'bottled in
 Sula Wines
 Launched in the year
2000. It was the first
marketing- savvy wine
company in India and
had initially positioned
itself in the premium
segment, giving high
quality and selling at
high price. However,
with time, the wine
company has entered
all the price ranges
and product segments
Grover Vineyards
 The Bangalore-based
winery, was established
in the year 1989. The
first wine under the wine
brand came out in 1992
and since that time, the
company has
endeavored to maintain
its excellent quality. One
its premier red wine
brands, La Reserve (a
Cabernet Shiraz), was
declared the best new
world red wine in the
August 1995 issue of
Decanter magazine, by
Steven Spurrier. It also a
low-cost wine, known as
VARIOUS PRODUCTS THEY
OFFER
 Marquise de Pompadour
 Chantilli
 La Reserve
 Chenin Blanc
 SULA CABERNET SHIRAZ
 MADERA ROSÉ
 HAMMER
 VIN BALLET
 Present Scenario
 India ranks 77th in wine consumption,
 Food processing industry status granted to
wineries
 The Indian wine markets is valued at $100 million
and expected to grow by 25-30 per cent by
2010,
 There is growing awareness about the wine as a
product in the domestic market.
 India- 38 wineries
Maharashtra -36 wineries
Wine Standing-Indian
Markets
Up to 80% of the
Demand

Wine
Wine
consumpti
consumpti
on per
on per
person
person
 SIZE & GROWTH
 The wine industry has witnessed a CAGR of over 25% over the last 3 years
in the premium wine segment mainly fuelled by the strong growth in the
domestic wine consumption.
 The industry is not very capital intensive, as it requires around Rs.10-15
million to setup a Wine plant with a capacity of 100,000 liters.
 The key raw materials such as grapes, bottles, and corks account for
approximately 20% of the total costs and are higher than the international
norms.
 The industry has low entry barriers because of its low capital-intensive
nature however the industry is under pressure for profits due to high
marketing costs and low volumes. With demand increasing at a steady pace,
the industry is expected to go through a consolidation phase.
 The fortunes of the industry are linked to the trend in the changing drinking
habits of Indians, higher disposable incomes, growth in the foreign tourists,
and government regulations and policies.
 The Indian wineries have planned expansion plans to meet the increasing
demand.
 There is a strong growth in the imported wine market with Indian importers
importing hundreds of brands from countries like France, Australia, US to
Bulgaria. Some of the well-known wine producers are also present in India
like Moet Hennessey, E&J Gallo.
 VINYARD CULTIVATION IN
INDIA
 Grape is grown under a variety of soil and
climatic conditions in three distinct agro-
climatic zones i.e sub-tropical, hot tropical
and mild tropical climatic regions.
 Maharastra- Nashik, Sangli, Baramati,
Narayangaon, Kohlapur
 Karnataka- Bangalore, Bijapur, Hubli
 Andhra Pradesh- Hyderabad
 About 70% of the 150,000 acres of vineyards
are in Maharashtra - and 95% of the grapes
produced are table grapes.
TYPES OF GRAPES
 RED Grapes Bangalore Blue, Sharad
seedless
 WHITE-Thomson Seedless

Anab-e-Shahi , Arkawati, Arka Shyam

q RED Grapes
Cabernet Sauvignon, Pinot Noir , Shiraz
(Syrah),Merlot
Zinfandel
q WHITE Grapes
Chardonnay , Clairette , Chenin Blanc ,
Ugni Blanc , Sauvignon Blanc
 Merlot , Uni Blanc., Syn. , Muscat Hamburg
GOVERNMENT POLICIES
 The policy of the government towards this
industry is mix
 Liquor companies are not allowed to
advertise on tv and radio
 It is necessary to write the warning
“drinking alcohol is injurious to health” on
the product
 The taxes and custom duty on wine
products have been reduced in recent
months
GOVERNMENT POLICIES
 State Levies & Taxes
 Levies vary from State-to-state - and differ on imported
vs domestically bottled wines.
 All brands have to be registered with state excise
authorities
 Registration fees are between Rs 5000 - 20,000 per
label per year
 Inter-state movement of domestic wines attracts
‘export fees’ and ‘import fees’, apart from a uniform
4.0% Central Sales Tax (CST) on the total billing (not
applicable to BIO wines)
 BIO wines generally suffer ‘special fees’ of between Rs
75 per bottle upto 33% of the landed price - in addition
to sales taxes.
 Trade margins - about 10% for wholesale and 12 - 20
 SYRAH
 ESTABLISHED IN 1895 IN FRANCE.
 FRANCE’S 2ND LARGEST PRODUCERS.
 EXPORTS 50% OF THEIR PRODUCTION.
 IT PRODUCES WORLDS BEST SPARKLING
WINE.
 THEY ALSO PRODUCE WHITE WINES AND
RED WINES.
 PRODUCES 5 mn BOTTLES PER YEAR.
 ANNUAL TURNOVER OF 30 mn EUROS.
PRODUCTS OFFERED BY SYRAH

 HENKEL TROCKEN SPARKLING WINE

 COLUMIA CREST WHITE WINE
 SMITH AND HOOK
 BLACKSTONE
 SN. FRANCIS
 PINE RIDGE
 CHATEAU STE MICHELLE
 IS IT FEASIBLE ?
 YES IT IS FEASIBLE FOR THEM TO START
BUSINESS IN INDIA.
 IDEL STATE WOULD BE MAHARASHTRA
 THE STATE EXEMPTS EXCISE DUTY ON
THE WINES
MADE IN THE MAHARASHTRA.
 WHILE THE WINES PRODUCED IN OTHER
STATES & IMPORTED ARE IMPOSED WITH
150-200% DUTY.
CONT
 IDEL PLACE WOULD BE HILLS AROUND
NASIK. AS THEY HAVE BEST CLIMATE &
SOIL IN INDIA FOR THE GRAPE
CULTIVATION.
 TEMPERATURE VARIES FROM 8`-42` C.
 Cabernet Sauvignon, Chenin Blanc,
Chardonnay, Merlot, Pinot Noir and Uni
Blanc.