Professional Documents
Culture Documents
Wine industry in
India
A Presentation by
S.Siyamalan
S.R.Swaminathan
Tamil Nadu Agricultural University
Synopsis
Wine consumption
--Preferences
Government Support
The Market
Scenario in southern regions
The essentials/Major aspects
Problems faced
Introduction
The People of India
Annual Per Capita Income Rising
Large Population Gives a Market Base
Government Backed Industry
Wine Declared as Small Scale
Grape is grown over 60,000 ha - production of 1.6
MT
Wine Industry Potential
Market Currently in Infancy Stage
Wines Beginning to Catch On Locally and Globally
Source : FAO, 2005
The People
Indian Economy
200
5
200
6
200
7
200
8
200
9
201
0
Population (millions)
1,095.
4
1,110.
4
1,125.
4
1,140.
2
1,155.
0
1,169.
7
2028
2210
2419
2651
2910
3176
Growth:
9.1
9%
9.4
9.5
9.7
Government Support
Wine Declared as a Small Scale Industry
Manufacturers exempted from excise duties
38 Wineries Currently in Operation
36 located within Maharashtra
5.4mn liters produced annually within
Maharashtra
India totals 762,000 cases sold per year
The Market
Target Market
Middle class ages 25-39
Current biggest wine consumers
Trendy upper class
Marketing
Open Markets
Maharashtra, Jammu Kashmir, Goa, Assam,
Meghalaya, Tripura, and Arunachal Pradesh.
Auction Markets
Rajasthan, Madhya Pradesh, Bihar, Haryana and
Chandigarh
Government Markets
The governments of the respective states act as
the wholesalers
TASMAC in Tamil Nadu, BEVCO in Kerala, APBC
in Andhra Pradesh and The DSIDC in Delhi
Consumer Preferences
Source: Food Press Release
Wine
Consumption
Red
45%
White
40%
Sparkling
13%
Ros
2%
Indigenous Wineries
Chateau Indage
18 types of wine
Chardonnay, Cabernet Sauvignon, Ugni
Blanc,
Pinot Noir, Gamay, Riesling, Muscat of
Alexandria
Sauvignon Blanc, Chenin Blanc, Zinfandel,
Viognier, Shiraz, Malbec and Grenache
Grover Vineyards
Nine varieties
Zinfandel ,Chardonnay, Pinot Noir,
Sauvignon Blanc, Chenin Blanc,Viognier,
Shiraz,
Viognier and Semillon
Sula winery
Sula Brut, Sula Seco and Sauvignon Blanc
Wine Parks
To encourage value addition on grapes
Grape Board
for quality control, certification and export
promotion.
Wine Institute
long-term growth strategy.
MIDC has set up Wine Parks with International
comparable infrastructure
at Vinchur, near Nashik & Palus, near Sangli
Karnataka
The Government intends to
Establish two Wine Parks.
Capital Investment Subsidy
Subsidy for Grape Processing
Incentives for marketing and distribution of
wines
Andhra
Government of Andhra Pradesh has issued
G.O.framing new rules on Winery projects.
Very low fee of Rs. 2000 per annum is fixed as
license fee to encourage this industry.
Government may call for applications for grant of
letters of intent in the near future.
Major aspects
The primary factors acting as
constrain for this industry in India.
At the very outset we have four
major issues to note:
1.
2.
3.
4.
Legal aspect,
Global aspect,
Social aspect and
Promotional aspect.
Problems Faced..
Wine drinking has not caught on
quality wines are priced relatively high.
Since the volumes are low, production costs
are high, as are taxes.
Real challenge -to develop a domestic market
Huge prohibiting factor - 300 per cent duty slab
To distribute finished goods
Excise Duty
Additional Duty
Markets & Regulations
Centre for Civil Society
Distillery/Brewery License
Fee
Bottling fee
Litterage fee
Assessment Fee
Franchise Fee
Permit Fee
Various taxes and duties
applicable to the wine
Standards
Ethyl alcohol -prescribed in 4 of IS 3752:1988
Enforced by State Excise Authority
Food additives - PFA /CODEX /JECFA
Flavor -PFA/FEMA GRAS
Carbonation -Grade 2 of IS 307:1996
Packing
glass bottles -IS 1662:1974
plastic bottles made of PET -IS 14537:1998
Sampling - IS 3753:1984
Conclusion
Presently Indian wine industry is in a nascent stage,
though it has kick started only from Maharashtra
much remains to be seen at the national level.
Indians will have to descriminate wines with other
alcoholic liqours.
The wine in fact is a social and health drink,
its consumption has to be promoted through various
media campaigns and wine festivals.
References
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