Indian Wine Industry Report

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The Report provides exhaustive information on the Indian Wine Sector, the market size, projected growth rates, the demand drivers, SWOT analysis, key characteristics of the Indian market and profile of leading players in India. An Illustrated guide to All Indian and Major International Wines in the Indian Market The First Complete Indian Wine Guide is surely going to pique your interest in wine, particularly in Indian wine. This report aims to contribute to the wider awareness of high-quality Indian wines, even as it guides the Indian consumer through all brands, domestic and imported, available in the Indian market

Transcript of Indian Wine Industry Report

  • 1.INDIAN WINE INDUSTRY REPORT2004-2005 DSM Marketing Pvt. Ltd. Copyright 2005

2. Indian Wine Industry Report 2005Table of Contents Section 1 Introduction to Indian Wine 1. Executive Summary 2. History of Indian Wine 3. Current Scenario 4. Categories 5. Wine grape growing regions Section 2 Indian Wine Market Analysis 1. Market Size 2. Market Share 3. Porters five Forces Analysis 4. SWOT Analysis 5. Price Segmentation 6. Consumer Segmentation 7. Market players and Indian Wineries 8. Key Importers Section 3 Indian Wine Market Data 1. Indian Wine Market Category-wise, Volume and Revenue 2. Indian Wine Market Region-wise, Volume and RevenueSection 4 Wine Market Forecast 2006-2010 1. Category-wise, Volume and Revenue 2. Region-wise, Volume and Revenue Section 5 Wine Rating 1. Indian Wine by Varietals 2. Indian Wine by Price 3. BIO wines by Indian Importers 4. BIO/Bulk wines by Indian producers Section 6 Key Information for new players 1. Taxation and Duty structure 2. Maharashtra Wine Parks 3. Foreign tourists growth rate -2- 3. Indian Wine Industry Report2005Annexures Sales Annexure 1.Wine market category-wise: Volume 1997-2004 Annexure 2.Wine market category-wise: Revenue 1997-2004 Annexure 3.Wine market category-wise: Volume Growth 1997-2004 Annexure 4.Wine market category-wise: Revenue Growth 1997-2004 Annexure 5.Wine market Region-wise: Volume 1997-2004 Annexure 6.Wine market Region-wise: Revenue 1997-2004 Annexure 7.Wine market Region-wise: Volume Growth 1997-2004 Annexure 8.Wine market Region-wise: Revenue Growth 1997-2004Projections Annexure 9.Wine market category-wise: Volume 2005-2010 Annexure 10. Wine market category-wise: Revenue 2005-2010 Annexure 11. Wine market category-wise: Volume Growth 2005-2010 Annexure 12. Wine market category-wise: Revenue Growth 2005-2010 Annexure 13. Wine market Region-wise: Volume 2005-2010 Annexure 14. Wine market Region-wise: Revenue 2005-2010 Annexure 15. Wine market Region-wise: Volume Growth 2005-2010 Annexure 16. Wine market Region-wise: Revenue Growth 2005-2010Wine Ratings Annexure 17. Varietal-Wise Indian Wine 2004-2005 Annexure 18. Indian Red Wine by price 2004-2005 Annexure 19. Indian White Wine by price 2004-2005 Annexure 20. Indian Sparkling Wine by price 2004-2005Other Annexure 21. BIO wine by Indian Importers 2004-2005 Annexure 22. BIO/Bulk wine by Indian Producers 2004-2005 Annexure 23. Foreign Tourists Growth rate, India 1995-2005 Annexure 24. Foreign Tourists Growth rate, India 2006-2010 -3- 4. Indian Wine Industry Report 2005SUMMARYThe wine industry report provides extensive information about the Indian wine market in the context of its size and brands currently available. The report also details the wine industry projections for the next five years.The Highlight of the report is the Wine Rating on the quality parameter by an international qualified wine advisor.This report will be extremely useful and is a must to new players wanting to invest in Indian wine market. Currently the Indian wine industry is growing at the rate of 25- 30% per annumn, with few good wine makers.This report is complied by two professionals after studying the Indian Wine industry for over a year and personally visiting the wineries and tasting almost all the Indian wine on the shelves.Dr. Aakash Singh Rathore LLMAakash, born in New York, holds the internationally recognized title of Certified Wine Advisor, having studied enology in the USA and Europe. He is currently associated with Delhi University as a Reader in the Dept. of Philosophy.Sameer Bagul BE, MBASameer, a wine enthusiast, an IIM Calcutta (Premier B-School in Asia) graduate has experience in Sales and Marketing in consumer goods, education industry.-4- 5. Indian Wine Industry Report 2005HISTORY The history of wine in India goes back to ancient times, although its peak eras date to the time of British presence. In India, generally, wine tended to be brought into the culture by various waves of conquerors and sojourners; however, there are several references to an indigenous production of wine in both North- western and Western India. One of the names for wine in ancient India was Drakshasava. Artefacts from Harappan civilisation indicate indigenous familiarity with wine. In the Vedic period, it is occasionally argued, wine was known as Somarasa, associated with Indra, and poured as a libation and drunk at religious festivals. Actually, I doubt this was wine, but there were certainly some references and uses of wine before Alexander the Great brought vines with him to northern India. For example, pre-Alexander Shaivite cult practices in this sense analogous to Greek Bacchic rites involved the use of wine as an intoxicant. Kautilyas Arthashastra, which dates from somewhere between 321-150BC (that is, during the Mauryan Empire, which was in the making during Alexanders conquests in north-western India), discusses alcoholic beverages made from fruit, though it is not clear that wine proper is meant. And moving ahead to the era of Mogul rule, the Persians had a famous wine, Shiraz, which was often sent to the Moguls in India, and later to the British. From the moment the British set up the Surat factory (1612), wine began becoming more and more familiar throughout India. Due to the cost of shipping wine to India, the British planted vineyards, in Surat, and also in Kashmir. Some of the domestics were drinkable, in spite of the fact that viticulture was hardly known in India. As the production was really picking up, a phylloxera epidemic destroyed all the vines in India, just as it had done in Europe as well. Whereas Europe replanted with resistant (American) root stocks grafted on to superior European vines, India did not. Thus, from the British landing in Surat in 1608 to today, the vast majority of the wine drunk in India has been imported. With the invention of Indian pale ale, beer began to overtake wine consumption in India in the 1820s, and then from around 1840-1870, brandy began to be recognised as the drink of choice. At the same time, with soda becoming widely accessible, whisky became a strong contender. Additionally, around the 1860s, when the Schweppes company began marketing its anti-malaria tonic, gin began to gain currency as the best means for making tonic palatable. Finally, in the 1920s to 1930s, cocktails became a fad worldwide, and even today in India, cocktails, whisky soda, rum and brandy are far, far more widely consumed than wine. Nevertheless, wine consumption in India is currently increasing at a rate of over 25% per year and certain domestic wineries yearly sell out their entire stock. The best cannot keep pace with demand. Indeed, it is expected that wine consumption in India will grow tenfold to reach an average consumption of about 60 million bottles in the next 7-10 years.-5- 6. Indian Wine Industry Report2005 CURRENT SCENARIO Today the overall sales are around 600,000 cases a year. Table wines account for 88-90 percent of the market and expensive varieties of vintage wines account for the remaining 10-12 per cent. Though the base of the market is small at 6 lac cases / year currently the wine industry in India is growing at the rate of more than 25% per annumn.There are three big companies presently making Premium wine Indage, Sula and Grover Vineyards. Others (Shaw Wallace, McDowells and the six Goa-based companies) produce cheaper wines from table grapes and the bulk of the Goan output is consumed within that state itself. However, more and more wineries are being set up with the aim to produce mainly international style wines, namely VinsuraWhile Indage is the market leader, Sulas volumes grew by over 65 per cent last year. Already there are more than 30 wineries operational with over 100 Indian brands. Australians being the best exporters are already here with Howling Wolves wine Group (HWWG), Ironstone vineyards, Greenpoint wines. Others include Terraza, Casa Lapostolle from South America along with old liquor majors in India like Seagrams and UDV. See the Indian importers list (Page 28). Sopexa, a French marketing and promotion board has setup office in India with a plan to increase French wine import in India by 50% in next two years.In the next few years, there would be over 100 wineries of varying sizes operating in the country, and with the government support in reduction of duties, the prices would reduce leading to the growth in this industry. We believe that this will lead to consolidation in the wine industry with few big players and few small players in the market. -6- 7. Indian Wine Industry Report 2005CATEGORIES There are basically three types of wine:1. Premium Wines (Still wines)2. Sparkling Wines3. Fortified wines This report focuses on the largest and most important category of wines (Premium wines), ignoring the cheaper country-made concoctions and fortified wines, which are also not yet made or regarded as quality wines. In the Still wine or premium wine category the Indian market is divided mainly into two major categories:White and Red wines. Note: Sparkling is generally considered in White category by many consumers. Further all the wines available in the above categories is divided in following three categoriesDomestic Indian Wine This is the wine, which is produced from Indian grapes and bottled in India by the domestic wineries.Foreign Bulk Wine Bottled in India Few large domestic producers import bulk wine and bottle it in India.Foreign Wine Bottled in origin More than 200 brands are currently available in this category that are Imported by Domestic players, Importers and Foreign players.-7- 8. Indian Wine Industry Report2005WINE GRAPE REGIONS IN INDIA The Indian sub-continent has four major wine producing regionsNasik Region (Maharashtra State) Location: Western India, Nasik Valley is 2000 ft. above sea level between 19-33 to 20-53 North latitude and 73-16 to 75-6 East longitude.Sangli Region (Maharashtra State) Location: South W