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State of Indian Wine Industry – Part -1

October 28, 2011


We’d like to cover the Indian Wine Industry [Not Alcohol] just 100% Wine – the Current State, Major Players, Consumers and the outlook for the same.

What has Wine got to do with Retailing in India ?
More than 30% of wine was sold via organized modern retail trade system in FY-2010. It is expected that retail trade will increase in the future as people will start gaining awareness and knowledge of wine types, brands and its food pairing attribute. Thus we thought we will enlighten you on the same.

Wine is yet at the transition point. With a marginal consumption of 1.8 million cases in FY-2010, the market presents compelling unexplored opportunities to grow, develop and improve in several aspects.Women Increasingly Embrace Wine in India
Regulations for Wine Industry:Increased cost of selling imported wine in the form of ex-bonding and customs duties, label registration and state duties, Trade margins, listing fees, and marketing expenses.

Every brand of wine produced or imported in India have to be registered with the excise department of each state with registration fees for transportation or consumption within that state.

Domestic vs Imported Wine:Domestic players will continue to lead the market, but imported ones will slowly catch up. Imported wines are expected to be consumed at a CAGR of around 33% during 2011 and 2012. Most of the International Wine imports are from France, Italy and Australia having an import share of approximately 42%, 14% and 12% respectively.

Wine Market and Segmentation:
Red wine is the most consumed wine in India accounting for 51.1% of the total wine consumption in India, followed by white wine with the market share of 40.6%. The following Pie-Chart Shows the Breakdown of Different Varieties of Wine Consumed in India and its Marketshare.Market Share of Different Types of Wines in India
Wine Consumption in India:
Mumbai is the largest wine consuming place accounting for 38.5% of the total wine consumption in India, followed by Delhi with 23.1% and Bangalore 9.8% market share in FY-2010.

Wine ManufacturersPresently, there are over 35 Wineries and more than 1,500 acres of grapes which are cultivated for wine manufacturing. The leaders are Chateau Indage [0.79mn cases], Sula Vineyards [0.63mn cases] and Grover Vineyards 0.22mn cases]. Others sell insignificant.

In the next post, we will cover Wine & Women in India and the outlook for this industry. Any Questions and Comments are Welcome.

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