Indian Wine Industry Report
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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 ...

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.

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Indian Wine Industry Report Indian Wine Industry Report Document Transcript

  • INDIAN WINE INDUSTRY REPORT 2004-2005 DSM Marketing Pvt. Ltd. Copyright 2005
  • Indian Wine Industry Report 2005 Table 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. Porter’s 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 Revenue Section 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-
  • Indian Wine Industry Report 2005 Annexures 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 1997-2004 Projections 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 2005-2010 Wine 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 2004-2005 Other 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-
  • Indian Wine Industry Report 2005 SUMMARY The 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 LLM Aakash, 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, MBA Sameer, a wine enthusiast, an IIM Calcutta (Premier B-School in Asia) graduate has experience in Sales and Marketing in consumer goods, education industry. -4-
  • Indian Wine Industry Report 2005 HISTORY The history of wine in India goes back to ancient times, although it’s 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. Kautilya’s Arthashastra, which dates from somewhere between 321-150BC (that is, during the Mauryan Empire, which was in the making during Alexander’s 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-
  • Indian Wine Industry Report 2005 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 Vinsura While Indage is the market leader, Sula’s 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 Seagram’s 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-
  • Indian Wine Industry Report 2005 CATEGORIES There are basically three types of wine: 1. Premium Wines (Still wines) 2. Sparkling Wines 3. 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 categories Domestic 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-
  • Indian Wine Industry Report 2005 WINE GRAPE REGIONS IN INDIA The Indian sub-continent has four major wine producing regions Nasik 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 West Maharashtra; Latitude 16-52’ North, and Longitude 74-36’ east Both of these regions are extremely good for growing grapes due to its monsoon rains, rich fertile soil and cool climate. Most of the Indian Wineries are located in these two regions including the largest Indage and Sula Vineyards. Bangalore region (Karnataka State) Location: South West, Latitude: 12- 8' North. Longitude: 77-37' East Apart from being nation’s IT capital Bangalore because of its cool climate is suitable for grapes. Grover, third largest wine producer of India, has its winery situated in Dodballapur, 2000 ft above sea level, 45 km North of Bangalore. Himachal region (Himachal Pradesh) Location: 30-22’ to 33-12’ North Latitude and 75-47’ to 79-04’ East Longitude This region lies in the northern India and is at the same latitude of the South Californian, Texas and north Florida wine grape growing region. Though this region is well known for the apples and cider some of the good wine is produced here. Temperature varies from 39° C in plains during summer - 20° C in the Alpine Zone during winters. Rainfall varies from 152 cms to 178 cms in outer Himalayas. -8-
  • Indian Wine Industry Report 2005 WINE GRAPE REGIONS HIMACHAL REGION NASIK REGION SANGLI REGION BANGALORE REGION -9-
  • Indian Wine Industry Report 2005 Section 2 Indian Wine Market Analysis - 10 -
  • Indian Wine Industry Report 2005 MARKET SIZE 2005 Indian Wine Market - Volume (Cases) Category 2004-05 Premium Wines (still) 277550 Sparkling wines 49280 Sub Total 326830 Cheap and fortified wines 271920 TOTAL 598750 Indian Wine Market - Revenue (Rs. Crs) Category 2004-05 Premium Wines (still) 133.2 Sparkling wines 37.0 Sub Total 170.2 Cheap and fortified wines 39.16 TOTAL 209.3 Indian Wine Market – Winery Sales# Company 1997 2002 2003 2004 Indage 25,000 85,000 100000 110000 Grover 12,500 21,000 35000 42000 Sula 0 12,000 15000 27750 Others 0 0 2000 8000 Imported 12,500 40,000 60000 70000 Total cases 50,000 158,000 212000 259754 # Company brochures, secondary sources, the actual numbers may vary. 1 Cr. = 10 million - 11 -
  • Indian Wine Industry Report 2005 MARKET SHARE Champagne Indage Ltd is the current market leader in wines in India with a total production of over 100,000 cases. Sula is gaining strength and soon poised to take its market share over Grover. Market Share 2003 28% Indage Grover 47% Sula 1% Others 7% Imported 17% Market Share 2004 27% Indage 43% Grover Sula 3% Others 11% Imported 16% Market Share 2005 projected 27% Indage 38% Grover Sula 4% Others 15% Imported 16% - 12 -
  • Indian Wine Industry Report 2005 Porter’s Five Forces Analysis Threat of new entrants Bargaining Bargaining power of power of consumers Internal suppliers competitio Threat of substitute s The model of five competitive forces is applied to the Indian wine industry to understand and analyze the industry structure in a better manner. These forces determine the intensity of the competition and hence profitability and attractiveness of the industry. The objective of these forces is to help strategize the company’s policies in a way that it improves the position of the company in the industry. - 13 -
  • Indian Wine Industry Report 2005 The power of suppliers The wine industry’s main suppliers are the grapes producers based in rural India. Most of the farmers sell their produce through co-operatives or individually to the wineries. The market is fragmented with small and medium farmers planting common Varietals. The top three wineries, integrating backwards, have planted grapes on hundreds of acres of land to control the quality of produce, costs and Varietal selection. However they also have signed long term contract with the local farmers for primarily common varieties. Contractual farming is a win-win situation for both farmers and wine producers but still it has long way to go. As wine grape cultivation yield is very low compared to the table grape varieties farmers are skeptical about the returns and hence contractual agreement with the wine producers provide assured income. The farmers are planting common varieties like Sauvignon Blanc. A few large and medium farmers have planted Zinfandel and Chardonnay and have higher bargaining power for these Varietals. The industry has also seen forward integration with large farmers starting new wineries however are unable to sell their product due to lack of expertise and understanding of the consumer market. As the wine industry will move from its current expansion phase to consolidation phase and increased volumes the suppliers will be able to see increased profits. The other suppliers of bottles and corks (read importers) have good bargaining power due to non-availability of corks in India and better glass quality than Indian bottle manufacturers. The power of Consumers Traditionally the wine consumer was in the niche segment and had fewer options for Indian wine. The good wine in India was very expensive and the less expensive wine was of very poor quality. The wine was never meant for the masses. However growing awareness and changing lifestyles have changed this scenario and suppliers today are forced to offer lower prices to the consumers. The capacity increase is also responsible for the downturn of the prices. The power of consumers is going to be high as the market increases and more market players offering better quality wine. - 14 -
  • Indian Wine Industry Report 2005 The threat of New Entrants The wine industry is not very capital intensive and with the government subsidies it is easier for new players to enter in the market. The current government policies are pro new wineries with zero excise duties and low license fees. However the brand equity of old players and the economies of scale they enjoy seriously threaten the new entrants. The industry and the products require extensive brand building efforts to create awareness and acceptability. The new players not only have to improve the quality of the wine but also have to have deep pockets to spend heavily on brand building efforts to sustain themselves The good news for the new players is that the distribution channels are open to new players willing to invest long term in the trade. The threat of substitutes “A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose” Substitutes like beer and spirits pose a serious threat to the wine industry, as their market is phenomenally bigger and growing and consumers switch very easily to these alternatives. However the wine producers do not have to worry as the wine industry has grown in the midst of these substitutes and carved a niche for itself with loyal consumers. The wine has an inherent advantage of being the healthier option to the empty calories of spirits and beer. Rivalry between the existing players The competition between the existing players has intensified with every one trying to grab the share of small but increasing market though the market growth rates are high it is on the smaller base. The current three big players in coming years will be of similar size and compete with each other. The new entrants are trying to offer better trade discounts to increase volume. There is however a huge possibility that the market consolidation will lead to few large players along with some small players creating product differentiation and co-existing with sustainable market shares. The need of the market is everybody working together to increase the market by creating awareness and educating the customers about the wine drinking benefits. Big players along with the government should come together to create a regulatory body for controlling the quality and creating awareness programs across the country. Foreign players entering India will pose threat to Indian wineries due to two main weaknesses of Indian players viz, poor quality of wine and low investment. - 15 -
  • Indian Wine Industry Report 2005 Conclusion The five forces model along with the SWOT analysis (see next page) provide new players insight into the current market dynamics and will help to plan their business strategy to improve their position in the industry. The new players have to influence the five forces in the interest of their businesses and strive hard to reduce the effect of these forces. - 16 -
  • Indian Wine Industry Report 2005 SWOT Analysis of the Market Strengths Weaknesses 1. Nascent Stage, few players 1. Poor Quality of wine 2. Growth rate per annumn 30% 2. Poor awareness on wine 3. Urban population increasing 3. Stringent and regressive every year government rules with 4. Good Climate for growing different taxation across wine grapes various states. 4. High custom duties and levies for foreign players. Opportunities Threats 1. Large domestic market with increasing disposable income 1. New players entering market 2. Population changing lifestyle at fast pace accepting new trends 2. Foreign players entering with 3. Export Potential to rest of the tie ups with better quality world. (Refer page 55) 4. Growing Tourism in India (Refer Annexure #) Suggestions As you have noticed that the Indian wine market if growing with phenomenal numbers, the base is smaller. Any new player will have to invest substantially to increase awareness about the wine and its benefits. The wine producers will have to work closely with the Indian government to achieve this cultural change which might seem slow in the beginning. The top of the line marketing budgets of all new entrants should be high. The new player should invest in creating a strong association for its products and thus create ‘pull’ in the market, rather than ‘push’ strategies adopted by the current players. - 17 -
  • Indian Wine Industry Report 2005 PRICE SEGMENTATION Remarks Price INR Price ($) Varietals Brands Poor quality red wines Indage's <200 < $4.5 made by small players, lowest brand Poor reds Local Varietals. Isabella Figueira Bluestar introduced Sula's madera their cheap 200-250 $4.5 - $5.5 Local varieties and Indage's variant in vinballet the name of Evita Dajeebah's 250-300 $5.5 - 6.5$ Local varieties rose, Sailo Red wine Three good Chenin Indage's 300-350 $6.5 - $8 Blanc by new players in largest selling For whites this segment brand Riviera Indage's The most Most Almost all cheap Largest segment, popular Grover's players have sparking 350-400 $8 - $9 Cabernet shiraz, SB, price wine in at least 2-3 wine in Rose segment, this brands this mostly reds segment segment Indage's 400-450 $9 - $10 Few brands malbec and Zin again Indage's Grover's 450-500 $10 - $11 Indage's Dominance mostly Excellent La reserva whites Shiraz ND had placed its few For Sparkling wines of 500+ $11 + products here, sparkling Indage and Sula which did not segment sell Note: The prices are per bottle of 750 ml, without any local sales tax. - 18 -
  • Indian Wine Industry Report 2005 CONSUMER SEGMENTATION The Indian Market largely can be classified into two Segments 1. Domestic 2. Foreign Tourists The Domestic 1. Urban The Urban population amounts to 48% of the total population in India and the target segment amounts to 1% of the total urban population. E.g the Total Population of Mumbai is 1.5 crs The Total Urban population is 70 lacs, so the target population is 7 lac. The characteristics of the target urban population a. Income above Rs.10 lac+ i. Self employed ii. Service class b. Income between 3 lac to 10 lac (Great Indian Middle Class) i. Highly educated upwardly mobile ii. Small business families iii. DINKS c. Income between 3 – 6 lac i. Upper Middle class 2. Rural a. Large farming community b. Small business class c. Govt. Service class Foreign The tourism boom has resulted in 2.5 million of tourist visiting India last year with a projected growth of 15 %. Embassies in the country also provide good market for Indian wines. Note: 10 lacs = 1 million - 19 -
  • Indian Wine Industry Report 2005 MARKET PLAYERS AND WINERIES There are numerous producers small and big across four major wine producing regions in India. There are private individuals spreads out all over the country trying their hand at producing wines in their own back gardens. But the major producers, listed in alphabetical order, are these: BOSCA (Baramati Grape Industries) BLUESTAR WINERY DAJEEBAH WINES (Datacone Wine Industry) FLAMINGO WINES GROVER VINEYARDS INDAGE (Champagne Indage) N.C. FINE WINES N.D. WINES PRATHMESH WINES PRINCESS (In-Vogue Creations) PYRAMID WINES RAJDHEER WINES RENNAISSANCE WINES SAILO WINES (V.M. Agrosoft) SAI KRIPA WINERY SHAW WALLACE SULA VINEYARDS (Samant Soma Wines) VINBROS & CO. VINICOLA VINSURA (Sankalp Winery) #For prices refer the annexures. - 20 -
  • Indian Wine Industry Report 2005 BOSCA Baramati Grape Industries Address: P.O. Pimpali, Tal. Baramati, District Pune, MS, 413 102 Capacity: 300,000 litres Operations from: Brands/ Varietals 1. Riesling 2. Red Wine 3. Rosé Wine Bosca also produce two fortified wine brands 1. Sherry 2. Vermouth Torino BLUESTAR WINERY Address: Chakan, Pune Capacity: 150,000 litres Operations from: 2004 Brands/ Varietals 1. Sauvignon Blanc 2. Chenin Blanc 3. Shiraz DAJEEBAH WINES (Data cone Winery) Address: 271, Samrajya, Sangliwadi, Sangli, MS, 416416 Capacity: 150,000 litres Operations from: 2003 Brands/Varietals 1. Sauvignon Blanc 2. Chenin Blanc 3. Cabernet Sauvignon 4. Shiraz 5. Chardonnay 6. Zinfandel 7. Merlot - 21 -
  • Indian Wine Industry Report 2005 8. Shherly Dry Red Wine 9. Balleee Sweet Red Wine FLAMINGO WINES Address: C U 4, MIDC Vinchur, Tal. Niphad, Dist. Nasik, 422 305, M.S Capacity: 100,000 Operations from: 2004 Brands/Varietals 1. Chenin Blanc 2. Sauvignon Blanc 3. Zinfandel 4. Cabernet-Shiraz GROVER VINEYARDS Address: Ragunathpura, Dodballapur Taluka, Bangalore District Capacity: N.A Operations from: Brands/Varietals 1. Brut 2. Demi-sec Rosé 3. Blanc de Blanc 4. Shiraz Rosé 5. La Reserve Red Wine 6. Cabernet-Shiraz 7. Sauvignon Blanc 8. Viognier-Clairette INDAGE (Champagne Indage) Address: A/p Narayangaon, Tal. Junner, Dist. Pune, M.S Capacity: N.A Operations from: 1987 Brands/ Varietals EXPORT ONLY 1. Anarkali Red 2. Chhabri White 3. Omar Khayam BRUT 4. Soma Red - 22 -
  • Indian Wine Industry Report 2005 5. Soma White 6. Tantra – Arkavati 7. Tantra – Baramati (red) 8. Tantra – Baramati (blush) SPARKLING WINE 1. Joie, cuvee close non-vintage. 2. Marquis de Pompadour, Brut. 3. Chateau Indage Ivy Brut VARIETALS 1. IVY Viognier 2. IVY Semillon/Chardonnay 3. IVY Shiraz 4. IVY Sauvignon/Semillon 5. IVY White Zinfandel 6. IVY Malbec 7. IVY Chenin/Muscat FEW VINTAGE WINES 1. Chantilli Chardonnay 2. Chantilli Cabernet Sauvignon 3. Riviera Red Wine 4. Riviera White Wine N.C. FINE WINES Address: A/p. Nerlie, Tal. Kadegaon, Dist. Sangli Capacity: 25,000 litres Operations from: 2003 Brands/Varietals 1. Fouray Red Wine N.D. WINES ( Own labels discontinued since 2005) Address: Pimpalgaon, Wani Road, At Po. Khedgaon, Tal. Dindori, Dist. Nasik, 422205. Capacity: 150,000 litres - 23 -
  • Indian Wine Industry Report 2005 Operations from: 2004 Brands/Varietals 1. N.D. Sauvignon Blanc 2. N.D. Cabernet Sauvignon 3. N.D. Chenin Blanc 4. N.D. Syrah 5. N.D. Cabernet-Syrah 6. N.D. Spaga (Sauvignon Blanc) 7. N.D. Spaga (Cabernet Sauvignon) 8. Hoor # ND is providing its entire wine to Sula. PRATHMESH WINES Address: Pimpaldar, Tal. Satana, Dist. Nashik, M.S Capacity: 50,000 litres Operations from: 2003 Brands/Varietals 1. Red Wine (Cabernet Sauviogon) 2. White Whine (Chenin Blanc) 3. Rosé Wine PRINCESS (In-Vogue Creations) Address: Taloja, Near Thane, MS Capacity: 25,000 litres Operations from: 2003 Brands/Varietals 1. Princess White Wine 2. Princess Red Wine PYRAMID WINES Address: MIDC Area, Plot No. E-200, Baramati, Dist. Pune, M.S Capacity: 150,000 litres Operations from: 2003 Brands/Varietals 1. Yellow Stone - 24 -
  • Indian Wine Industry Report 2005 RAJDHEER WINES Address: Bhilwad, Post. Kapsi, Tal. Deola, Dist. Nashik, 423 120, M.S Capacity: 40,000 litres Operations from: 2003 Brands/Varietals 1. Le Vino Red Wine 2. Aurum White Wine RENNAISSANCE WINES Address: Capacity: 150,000 litres Brands/Varietals SAILO WINES (V.M. Agrosoft) Address: A/p. Pimpalgaon Baswant, Tal. Niphad, Dist. Nashik, 422 209, M.S Capacity: 25,000 litres Operations from: 2003 Brands/Varietals 1. Et Tu Brutus 2. Mark Antony SAI KRIPA WINERY Address: Wine Park, Pulose, Sangli, MS Capacity: 50,000 litres Operations from: 2004 Brands/Varietals SHAW WALLACE Address: Reg. Off: Gulab Bhawan, 6 Bahadur Shah Zafar Marg, New Delhi 110 002 Winery is based in Bangalore Capacity: 150,000 litres Brands/Varietals - 25 -
  • Indian Wine Industry Report 2005 1. Golconda Ruby Wine SULA VINEYARDS (Samant Soma Wines) Address: Gat 35/2, Govardhan, Off Gangapur Road, Dist. Nashik, M.S Capacity: 600,000 litres Operations from: 1997 Brands/Varietals Sparkling: 1. Sula Brut 2. Sula Seco Whites: 3. Sauvignon Blanc 4. Chenin Blanc 5. Madeira white Reds: 6. Sula Cabernet/Shiraz 7. Madeira red Rosés: 8. Blush zinfandel 9. Madeira rosé VINBROS & CO. Address: 23, Romain Rolland Street, Pondicherry Capacity: 150,000 litres Brands/Varietals (1) Globus Port Wine (2) Vinbros Red Magic ruby red wine VINICOLA Address: 248 Borda, Margao, 403602, Goa Capacity: 500,000 litres Brands/Varietals - 26 -
  • Indian Wine Industry Report 2005 1. Casal Red – Slightly sparkling red wine 2. Casal White – Slightly sparkling white wine 3. 28 Carats Red 4. 28 Carats White – Sparkling white wine 5. Apple Champagne – Sparkling wine made with apple extracts 6. Sangria – Slightly sparkling sweet wine 7. Conde de Monte Cristo – Dry white wine 8. Adega de Velha 9. Vino Branco Doce – Sweet white wine 10. Vinicola Riesling – Dry white wine, probably not really made with Riesling 11. Vinicola Cabernet – Dry red wine, perhaps made from Cabernet 12. Vinicola Muscatel – Sweet white, perhaps made from Muscat 13. Vinicola Medallion – Dry white wine 14. Vinicola Rose Wine – Sweet, light pink wine 15. Vinicola Ruby Wine 16. Granjo 17. Colva Brut VINSURA (Sankalp Winery) Address: A/p Vinchur, Tal. Niphad, Dist. Nashik, M.S. Capacity: 150,000 litres Operations from: 2003 Brands/Varietals 1. Cabernet Sauvignon 2. Zinfandel 3. Syrah 4. Sauvignon Blanc 5. Chenin Blanc 6. Symphony (local variety) - 27 -
  • Indian Wine Industry Report 2005 OTHER WINERIES Girana Valley Wine Yard A/p. Bhaoor, Tal. Deola, Dist. Nashik, M.S. Indogrape Winery A/p. Gopalpur, Tal. Pandharpur, Dist. Solapur, M.S. Kalyani Wines and Beverages Maya Hospital, Mayni Road, A/p. Vita, Tal. Khanapur, Dist. Sangli, M.S. Maharaja Winery Arogya Vignon Vidyapeeth, A/p. Dhakambe Shivar, Tal. Dindori, Dist. Nashik, M.S. Mohini Wineries Gat No. 321, A/p. Akolekati, Tal. North Solapur, Dist. Solapur, M.S. Sahayadri Hills Vineyards 271 Samrajya, Sangliwadi, Dist. Sangli, 416416, M.S. Shivprasad Wines Kakasaheb Wagnagar, A/p. Ranwad, Tal. Niphad, Dist. Nashik, M.S. Note: The above list of wineries and its products is not exhaustive. - 28 -
  • Indian Wine Industry Report 2005 KEY IMPORTERS The total current imports in India amount to 90000 cases from all the importers. This number is growing at over 30% with list of importers increasing every year. Sonarys Co-Brands Pvt. Ltd. Mumbai G-12, Creative Industrial Estate, NM Joshi Marg Mumbai-400011 91-22-56669111 Brindco Sales ltd. Delhi S-53 Okhla industrial estate, Phase II New-Delhi-110020 # 91-11-51616424 Mohan Brothers Delhi RR International Delhi Global Tax Free Traders Inc Delhi Kiara Wines Mumbai BJ Patel Road, Malad West Mumbai –400064 91-22-28827033 / 0743 Fairmacs Shipstores Pvt. Ltd. Chennai 14, Moore Street, Chennai – 600001 91-44-25231383 / 84 / 85 Star X wines Delhi Echidna Wines Mumbai Please see Annexure 21 for the list of wines imported by Indian importers. Please see Annexure 22 for list of wines imported by Indian Wine Producers - 29 -
  • Indian Wine Industry Report 2005 Section 3 Indian Wine Market Data - 30 -
  • Indian Wine Industry Report 2005 Indian Wine Market Category-wise Annexure 1 VOLUME – CASES Category 1997 2001-02 2002-03 2003-04 2004-05 Premium Wines (still) 40000 120000 172000 209840 272792 Sparkling wines 10000 30000 35000 39200 43120 Sub Total 50000 150000 207000 249040 315912 Cheap and fortified wines 100000 220000 240000 247200 271920 TOTAL 150000 370000 447000 496240 587832 Annexure 2 REVENUE (Rs. Crores) Category 1997 2001-02 2002-03 2003-04 2004-05 Premium Wines (still) 16.8 57.6 82.56 105.8 130.9 Sparkling wines 6 21.6 25.2 29.2 32.3 Sub Total 22.8 79.2 107.7 134.9 163.3 Cheap and fortified wines 12 29.04 34.56 35.60 39.16 TOTAL 34.8 108.2 142.3 170.5 202.4 REVENUE (USD million) Category 1997 2001-02 2002-03 2003-04 2004-05 Premium Wines (still) 3.7 12.8 18.3 23.5 29.1 Sparkling wines 1.3 4.8 5.6 6.5 7.2 Sub Total 5.1 17.6 23.9 30.0 36.3 Cheap and fortified wines 2.7 6.5 7.7 7.9 8.7 TOTAL 7.7 24.1 31.6 37.9 45.0 - 31 -
  • Indian Wine Industry Report 2005 Indian Wine Market Category-wise Annexure 3 Volume Growth Category 1997-02 2002-03 2003-04 2004-05 Premium Wines (still) 200% 43% 22% 30% Sparkling wines 200% 17% 12% 10% Sub Total 200% 38% 20% 27% Cheap and fortified wines 120% 9% 3% 10% TOTAL 147% 21% 11% 18% Annexure 4 Revenue Growth Category 1997-02 2002-03 2003-04 2004-05 Premium Wines (still) 243% 43% 28% 24% Sparkling wines 260% 17% 16% 11% Sub Total 247% 36% 25% 21% Cheap and fortified wines 142% 19% 3% 10% TOTAL 211% 31% 20% 19% - 32 -
  • Indian Wine Industry Report 2005 Indian Wine Market Region-wise The Region-wise sales are only for PREMIUM WINES (Still and Sparkling) Regions North- Delhi, Chandigarh South- Bangalore, Hyderabad, Kerala, Goa West- Mumbai East- Calcutta, Guwahati, Orissa Annexure 5 PREMIUM WINES, VOLUME - CASES Region 1997 2001-02 2002-03 2003-04 2004-05 North 14000 40000 56000 67200 86016 South 10000 32000 44000 50600 60720 West 24000 67000 95000 114000 147060 East 3500 11000 15000 16800 19320 TOTAL 51500 150000 210000 248600 313116 Annexure 6 PREMIUM WINES, REVENUE- Rs. (CRORES) Region 1997 2001-02 2002-03 2003-04 2004-05 North 7 21 30 38 47 South 5 16 23 27 31 West 12 35 50 64 81 East 2 5 7 9 10 TOTAL 25 77 110 137 169 PREMIUM WINES – REVENUE, USD (Million) Region 1997 2001-02 2002-03 2003-04 2004-05 North 1.5 4.7 6.7 8.4 10.6 South 1.1 3.6 5.0 5.9 6.9 West 2.6 7.7 11.1 14.3 18.0 East 0.4 1.2 1.6 1.9 2.2 TOTAL 5.5 17.2 24.6 30.6 37.6 - 33 -
  • Indian Wine Industry Report 2005 Indian Wine Market Region-wise Annexure 7 PREMIUM WINES, VOLUME- GROWTH Region 1997-02 2002-03 2003-04 2004-05 North 186% 40% 20% 28% South 220% 38% 15% 20% West 179% 42% 20% 29% East 214% 36% 12% 15% TOTAL 191% 40% 18% 26% Annexure 8 PREMIUM WINES, REVENUE- GROWTH Region 1997-02 2002-03 2003-04 2004-05 North 207% 43% 25% 25% South 236% 41% 18% 16% West 200% 45% 28% 26% East 222% 36% 16% 14% TOTAL 210% 43% 24% 23% - 34 -
  • Indian Wine Industry Report 2005 Section 4 Indian Wine Market Forecast 2006-10 - 35 -
  • Indian Wine Industry Report 2005 CATEGORY SALES PROJECTIONS 2005- 2010 Annexure 9 VOLUME PROJECTION- CASES 2005-06 2006-07 2007-08 2008-09 2009-10 Premium Wines (still) 354630 443287 558542 692592 879591 Sparkling wines 47432 52175.2 57393 63132 69445 Sub Total 402062 495462 615934 755724 949036 Cheap and fortified wines 285516 299792 314781 330520 347046 TOTAL 687578 795254 930716 1086244 1296083 Annexure 10 REVENUE PROJECTION– Rs. (CRORES) 2005-06 2006-07 2007-08 2008-09 2009-10 Premium Wines(still) 161.7 196.8 254.7 315.8 401.1 Sparkling wines 34.2 36.9 41.3 43.9 50.0 Sub Total 196 234 296.0 360 451 Cheap and fortified wines 41.11 35.98 37.77 39.66 41.65 TOTAL 237 270 333 399 492 REVENUE PROJECTION– USD (MILLION) 2005-06 2006-07 2007-08 2008-09 2009-10 Premium Wines(still) 35.9 43.7 56.6 70.2 89.1 Sparkling wines 7.6 8.2 9.2 9.8 11.1 Sub Total 43.5 51.9 65.8 79.9 100.2 Cheap and fortified wines 9.1 8.0 8.4 8.8 9.3 TOTAL 52.7 59.9 74.2 88.8 109.5 - 36 -
  • Indian Wine Industry Report 2005 PROJECTION GROWTH Category-wise Annexure 11 PROJECTED VOLUME GROWTH 2005-06 2006-07 2007-08 2008-09 2009-10 Premium Wines (still) 30% 25% 26% 24% 27% Sparkling wines 10% 10% 10% 10% 10% Sub Total 27% 23% 24% 23% 26% Cheap and fortified wines 5% 5% 5% 5% 5% TOTAL 17% 16% 17% 17% 19% Annexure 12 PROJECTED REVENUE GROWTH 2005-06 2006-07 2007-08 2008-09 2009-10 Premium Wines (still) 24% 22% 29% 24% 27% Sparkling wines 6% 8% 12% 6% 14% Sub Total 20% 19% 27% 22% 25% Cheap and fortified wines 5% -13% 5% 5% 5% TOTAL 17% 14% 24% 20% 23% - 37 -
  • Indian Wine Industry Report 2005 REGION SALES PROJECTIONS 2005-2010 Region-wise Annexure 13 PREMIUM WINES, VOLUME - CASES Region 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 North 110100 137626 172032 213320 266650 South 74078 90376 111162 134506 164097 West 191178 238973 298716 367420 459275 East 23184 27357 32008 37129 43070 TOTAL 398541 494331 613918 752375 933092 Annexure 14 PREMIUM WINES, REVENUE – Rs. (CRORES) Region 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 North 57 68 85 105 131 South 37 43 53 65 79 West 96 116 147 176 226 East 11 13 15 18 21 TOTAL 202 240 300 364 457 PREMIUM WINES, REVENUE – USD (MILLION) Region 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 North 12.6 15.0 18.8 23.3 29.2 South 8.3 9.6 11.9 14.3 17.5 West 21.4 25.8 32.7 39.2 50.2 East 2.5 2.9 3.4 4.0 4.6 TOTAL 44.8 53.4 66.7 80.8 101.5 - 38 -
  • Indian Wine Industry Report 2005 PROJECTION GROWTH Region-wise Annexure 15 PROJECTED VOLUME GROWTH Region 2005-06 2006-07 2007-08 2008-09 2009-10 North 28% 25% 25% 24% 25% South 22% 22% 23% 21% 22% West 30% 25% 25% 23% 25% East 20% 18% 17% 16% 16% TOTAL 27% 24% 24% 23% 24% Annexure 16 PROJECTED REVENUE GROWTH Region 2005-06 2006-07 2007-08 2008-09 2009-10 North 20% 19% 25% 24% 25% South 21% 16% 23% 21% 22% West 19% 21% 27% 20% 28% East 14% 18% 17% 16% 16% TOTAL 19% 19% 25% 21% 26% - 39 -
  • Indian Wine Industry Report 2005 Section 5 Indian Wine Rating - 40 -
  • Indian Wine Industry Report 2005 Indian Wine by Varietals Note: The rating of the wines has been conducted according to standard, objective wine evaluation techniques; however, different experts may disagree on the rating of any given wine. All ratings included in this study are for reference only and should not be relied upon for any contractual purpose. All data should be crosschecked by the interested parties. The authors of this Report will not be responsible for reliance on these ratings/data, which are provided only for reference. The Price is for 750 ml bottle without any taxes The currency conversion is taken at Rs 45 for 1 USD Annexure 17 Sauvignon Blanc Price $ Price Varietal Producer Brand Rating (Rs.) Sauvignon Blanc ND Spaga Average 13 540 Sauvignon Blanc Sula Sula Average 11 490 Sauvignon Blanc ND Sauvignon blanc Good 9 408 Sauvignon Blanc Grovers Sauvignon blanc Average 9 400 Sauvignon Blanc Flamingo Sauvignon blanc Average 9 397 Sauvignon Blanc Vinsura Sauvignon blanc Good 9 395 Sauvignon Blanc Dajeebah Sauvignon blanc Good 8 355 Sauvignon Blanc Bluestar Bluefolds Very good 8 330 Chenin Blanc Price Varietal Producer Brand Rating (Rs) Price ($) Chenin Blanc ND CB Average 378 9 Chenin Blanc Sula Sula Average 375 9 Chenin Blanc Prathamesh White wine 365 8 Chenin White Chenin Blanc Dajeebah wine 355 8 Chenin Blanc Vinsura Good 350 8 Chenin Blanc Bluestar Bluefolds 330 8 Chenin Blanc Flamingo Good 326 8 Chenin Blanc Rajdheer Arum white wine Poor 0 N.A: Not Available - 41 -
  • Indian Wine Industry Report 2005 Cabernet Sauvignon Price Price Varietal Producer Brand Rating (Rs) ($) Cabernet Sauvignon ND Wines Spaga Average 582 14 Cabernet Sauvignon Indage Chantilli Average 385 9 Cabernet Sauvignon Prathamesh Red wine Poor 365 8 Cabernet Sauvignon ND Wine CS Good 360 8 Cabernet Sauvignon Dajeebah CS Average 305 7 Mark Antony - Cabernet Sauvignon Sailo Wines red Good 257 6 La Vino Red Cabernet Sauvignon Rajdheer wine Poor NA NA Zinfandel Price Price Varietal Producer Brand Rating (Rs) ($) Zinfandel Indage Ivy Zinfandel Average 450 10 Zinfandel Dajeebah Zinfandel red wine Average 405 9 Zinfandel Vinsura Zinfandel Good 400 9 Zinfandel Flamingo Zinfandel Very good 353 8 Zinfandel Sula Blush Zinfandel Average 450 10 Rose` Price Price Varietal Producer Brand Rating (Rs) ($) Rose' Prathamesh Rose' Poor 365 8 Rose' Grovers Rose' Poor 360 8 Rose' Vinsura Rose' Good 360 8 Rose' Dajeebah Rose wine Average 255 6 Rose' Sula Madera Rose Average 205 5 - 42 -
  • Indian Wine Industry Report 2005 Indian ‘Reds’ by Price Annexure 18 Price Varietal Producer Brand Rating (Rs.) Price ($) Cabernet Sauvignon ND Spaga Average 582 14 Shiraz ND Syrah Average 540 13 Cabernet shiraz ND Cabernet Shiraz Good 492 11 Shiraz Indage Ivy Shiraz Excellent 460 11 Cabernet shiraz Grovers La Reserve Good 450 10 Malbec Indage Ivy Malbec Very good 425 10 Zinfandel Dajeebah Zinfandel red wine Average 405 9 Zinfandel Vinsura Zinfandel Good 400 9 Cabernet shiraz Sula Cabernet Shiraz Average 395 9 Cabernet Sauvignon Indage Chantilli Average 385 9 Cabernet shiraz Flamingo Cabernet Shiraz Very good 369 9 Cabernet Sauvignon Prathamesh Red wine Poor 365 8 Cabernet Sauvignon ND CS Good 360 8 Cabernet shiraz Grovers cabernetshiraz Very good 360 8 Shiraz Dajeebah Syrah Red wine Average 355 8 Zinfandel Flamingo Zinfandel Very good 353 8 Shiraz Bluestar Bluefolds Good 350 8 Cabernet Sauvignon Dajeebah Cabernet Sauvignon Average 305 7 Pinot Noir Indage Riviera Red wine Average 300 7 Merlot Dajeebah Merlot Good 275 6 Cabernet Sauvignon Sailo Mark Antony - red Good 257 6 Gamay arkeshyam Indage Vin Ballet Red Wine Poor 230 5 Local Varietal Bluestar Evita Average 220 5 NA Sula Madera Red Average 205 5 Cabernet shiraz Pyramid Wines Yellow Stone Poor 190 4 Isabella Sailo Et tu Brutus-red Average 185 4 Local Varietal Dajeebah Shherly Poor 180 4 Isabella NC fine wines Fouray Poor 175 4 Local Varietal Indage Figueira Red Average 139 3 Local Varietal Dajeebah Balleee Poor 125 3 NA Princess Red Wine Poor 120 3 Bangalore Blue Shaw Wallace Golconda Ruby Wine Poor 0 Cabernet Sauvignon Rajdheer La Vino Red wine Poor 0 - 43 -
  • Indian Wine Industry Report 2005 Indian ‘Whites’ by Price Annexure 19 Price Price Varietal Producer Brand Rating (Rs.) ($) Riesling Indage Rhine Pride 588 14 Sauvignon Blanc ND Spaga Average 540 13 Sauvignon Blanc Sula Sula Average 490 11 Ivy Semillon Semillon chardonnay Indage Chardonnay 490 11 Viognier Indage Ivy Viognier 460 11 Semillon sauvignon Indage Ivy Sauvignon Semillon 455 11 Chenin Blanc muscat Indage Ivy Chenin Muscat 455 11 Zinfandel Indage Ivy Zinfandel Average 450 10 Sauvignon Blanc ND SB Good 408 9 Chardonnay White Chardonnay Dajeebah wine 405 9 Sauvignon Blanc Grovers Sauvignon blanc Average 400 9 na Vinsura Flora 400 9 Sauvignon Blanc Flamingo Average 397 9 Sauvignon Blanc Vinsura Good 395 9 Chardonnay Indage Chantilli Chanrdonnay Average 385 9 Chenin Blanc ND CB Average 378 9 Chenin Blanc Sula Sula Average 375 9 Chenin Blanc Prathamesh White wine 365 8 Clairette Grovers Blanc de blanc 360 8 Viognier clairette Grovers Viognier clairette Good 360 8 Sauvignon Blanc Dajeebah Sauvignon blanc 355 8 Chenin Blanc Dajeebah Chenin White wine 355 8 Chenin Blanc Vinsura Good 350 8 Chenin / sauvignon ND Hoor Good 340 8 Very Sauvignon Blanc Bluestar Bluefolds good 330 8 Chenin Blanc Bluestar Bluefolds 330 8 Chenin Blanc Flamingo Good 326 8 Ugni Blanc chardonnay Indage Riviera White wine Average 320 7 Ugni Blanc akravati Indage Vin Ballet White Wine Average 230 5 NA Sula Madera White Average 205 5 Princess White Wine Poor 150 3 Local Varietal Indage Figueira White 139 3 Chenin Blanc Rajdheer Arum white wine 0 - 44 -
  • Indian Wine Industry Report 2005 Indian ‘Sparkling’ by price Annexure 20 Price Price Varietal Producer Brand Rating (Rs.) ($) Pinot Noir, ugni blanc Marquis de chardonnay Indage Pompadour Good 720 17 Chenin Blanc, Riesling chardonnay Indage Ivy brut 2004 Average 550 13 Very Local Varietal Sula Sula Brut good 550 13 Local Varietal Sula Sula Seco Average 395 9 Grenache ugni blanc Indage Joie, cuvee close Average 370 9 - 45 -
  • Indian Wine Industry Report 2005 BIO wines (Indian importers) Annexure 21 BRINDCO Country Winery/Producer South Africa Rupert and Rothschild Mulder Bosch Vineyards Chile Vina Tarapaca Baron Philippe De Rothschild Clina Estates Australia Mc Williams Leeuwin Estate D'Arenburg Winery Clarendon Hills Wolf Blass Winery Chinkara Winery New Zealand Montana USA Kendall Jackson Sequoia Group St. Francis Winery Benziger Vineyards Jordan Wines Clos Pecase Winery Joseph Phelps Vineyards Cakebread Cellars Duck Horn Vineyards Caymus Vineyards Stag's Leap Wine Cellars Dominus Wine Group Spain Codorniu Italy Zonin Tasca D' Almerita - 46 -
  • Indian Wine Industry Report 2005 Allegrini Marchesi De Frescobaldi Marchesi Di Barolo Tenuta Dell' Ornellaia Gaja Winery France Henri Bourgeois Chateau De Ampuis Delas Maison Louis Jadot Sonarys Country Winery/Producer Australia Casella Australia J&F Lurton Australia Lindermans Australia Penfolds Australia Rosemount Australia Seppelt California Arrowood California Clos Du val California Robert Mondavi Chile Calitera Arboleda Chile Montes France Georges Duboeuf France Allegrini Estate Winery France Domaine La Chevaliere France Faiveley France Hugel Et Fils France Louis Roederer France Pascal Jolivet France Paul Jaboulet Aine France Sauvion France Taittinger Hungary Tokaj Hetszolo Italy Antinori Italy Bisol Italy Carpineto Italy UmbertoCesari Italy Col D'orcia - 47 -
  • Indian Wine Industry Report 2005 Italy Gaja Italy Mantellassi Italy Michele Chiarlo's Italy Pighin Italy Prunotto Italy Tenuta San Guido Italy Tormaresca Italy Torti Italy Villa Girardi Italy Garofoli New Zealand Villa Maria Potugal Dow's South Africa Spring Field Estate Spain Enate Spain Bodegas Palacio Spain Marques De Murrieta Kiara Wines Country Winery/producer Italy Cantina Tudernum Beni Di Batasiolo Gerardo Cesari Spa Casa V L Checchi Azi. Agri. Lorenzon France Jean Claude Fabris Romania Halewood Romania Hungary Szigetvin Argentina Santa Ana Chile Luis Fellipe Edwards Australia Tandou Wines - 48 -
  • Indian Wine Industry Report 2005 BIO / Bulk (Indian Wine Producers) Annexure 22 Note: The rating of the wines has been conducted according to standard, objective wine evaluation techniques; however, different experts may disagree on the rating of any given wine. All ratings included in this study are for reference only and should not be relied upon for any contractual purpose. All data should be crosschecked by the interested parties. The authors of this Report will not be responsible for reliance on these ratings/data, which are provided only for reference. Indage Varietals Country Winery Brand Rating Price Shiraz Australia Cranswick Cranswick Indage Shiraz Good 500 Merlot Australia Cranswick Cranswick Indage Merlot Good 475 Chardonnay Australia Cranswick Cranswick Indage Chardonnay Good 475 Pinot Noir South Africa Nelson Creek Zulu Nelson's Creek Good 450 Cabernet,Merlot France Taillan Vin de pays d'oc Good 470 Riesling Germany Peter Mertes Perter Mertes Indage Rhine Poor 450 Cabernet Sauvignon Chile Morande Morande Indage Cab Sav Good 588 Sauvignon Blanc Chile Morande Morande Indage Sau Blanc Good 588 Pinot Noir Zulu Pinotage Average 588 Sula “Reds” Varietals Country Winery Brand Merlot Malbec Argentina Trapiche Astita Merlot Malbec Tempranillo Argentina Trapiche Astita Tempranillo Cabernet Merlot Australia Hardy's Stamp Series Shiraz Cabernet Australia Hardy's Stamp Series Merlot Chile Santa Rita 120 Merlot Cabernet Sauvignon France Fortant De France Cab Sauv Merlot France Fortant De France Merlot Shiraz France Fortant De France Shiraz Merlot Cabernet France Michel Lynch Michel Lynch Bordeaux Rouge Sangiovese Italy Ruffino Aziano Chianti Classico Sangiovese Italy Ruffino Riserva Ducale Chianti NA Italy Ruffino Chianti Ruffino Sangiovese, Cabernet, Merlot Italy Ruffino Modus Toscana NA Italy Ruffino TENUTA GREPPONE MAZZI - 49 -
  • Indian Wine Industry Report 2005 Shiraz South Africa Distell Two Oceans Pinot noir South Africa Distell Two Oceans NA Spain Marqués de Cáceres Rioja Red - 50 -
  • Indian Wine Industry Report 2005 Sula “Whites” Varietals Country Winery/Producer Brand Sauvignon Blanc Semillion Argentina Trapiche Astita Sauvignon Semillion Torrontes Argentina Trapiche Astita Torrontes Chardonnay Australia Hardy's Nottage hill Chardonnay Chardonnay Semillion Australia Hardy's Stamp Series Reisling Gewurztraminer Australia Hardy's Stamp Series Chardonnay Chile Santa Rita 120 Chardonnay Sauvignon Blanc France Fortant De France Sauvignon Blanc Chardonnay France Fortant De France Chardonnay Sauvignon Semillion France Michel Lynch Michel Lynch Bordeaux Blanc Orvieto Italy Ruffino Orvieto Secco Chardonnay Italy Ruffino Libaio Chardonnay Toscana I.G.T. Sauvignon Blanc New Zealand Nobilo Marlborough Sauvignon Blanc Chardonnay South Africa Distell Two Oceans Sauvignon blanc South Africa Distell Two Oceans NA Spain Marqués de Cáceres Rioja white Sula “Sparkling” Varietals Country Winery/Producer Brand Pinot noir, chardonnay France Taittinger Taittinger Brut Reserve NA France Taittinger Taittinger Comtes de Champagne Blanc de Blancs Sauvignon, Muscadel South Africa J.C. Le Roux Le Domaine - 51 -
  • Indian Wine Industry Report 2005 Section 6 Key information for new players - 52 -
  • Indian Wine Industry Report 2005 TAXES AND DUTY STRUCTURE Wine Imports (BIO WINES) For importing wines no licence is required one can import wine into a Customs Bonded Warehouse; thereafter, goods can move either duty free (against a licence from hotels) or duty paid to licence holders after paying the relevant customs duties. Import duties* 03-04 Duties on wines at present are CIF Value (US$/Case) <$25 $25 - $40 > $40 Basic Customs duty 100% 100% 100% Additional Duty 75% 50% or $37/case 20% or $40/case Countervailing duty 4.5% 4.5% 4.5% Minimum effective 350% 210% 190% duty Landing Cost Calculation (All Costs in US$ per case of 9 Litre) Wine & Beer >= 25 >= Cost < 25 Remarks Remarks < 40 40 CIF 25 40 50 Add Basic 100% 25 40 50 Sub Total 50 80 100 The rate of additional duty The additional duty for wines is 20% subject Add Additional Duty 37.5 40 costing above US$ 25 but 40 to a minimum of less US$ 40 per case is 50% US$ 40 Sub Total 87.5 120 140 Countervailing Duty 3.5 4.8 5.6 4% Landed Cost per 91 124.8 145.6 case  The above information may change as per the government rules CIF - means that the seller delivers when the goods pass the ship’s rail in port of shipment. - 53 -
  • Indian Wine Industry Report 2005 OTHER FEES/DUTIES APPLICABLE TO WINE Distillery/Brewery License Fee Bottling fee Litterage fee Assessment Fee Franchise Fee Permit Fee Gallon age Fee Raw Material Excise Availability Fee Brand/Label Fee Permit Fee Transportation Fee Import Pass Fee Export Pass Fee Educational/Welfare Cess Vend Fee (Rs.2 / litre) Sales Tax/Surcharge (approx 20%, varies in each state) License Fee Toll Tax TOT (full form) Source: Centre for civil society Maharashtra’s grape policy 2001 (source MIDC) Accordingly, to give impetus to the grape processing and wine industry in the state, preparation of a separate policy was under active consideration of the State Government. 1. Declaration as a Preferential Area: As the Winery industry does not fall in the preferential area of granting loans, the financial institution like NABARD does not grant loans in such industries. Therefore, to get the high price of the product for farmers and to create better employment in the state, NABARD may be requested to declare preferential area for Winery Industries, enabling to grant such requisite loans. 2. Declaration as a Small Scale Industry: Within the limits of investments prescribed for the Small Scale Industry, wineries should be considered as a Small Scale Industry. 3. Concessions in Excise Duty: For those wine industries whose production has been started before 19th September, 2001, the excise duty will be charged at the rate of 50 per cent of the production expenditure incurred by such units instead of present 100 per cent rate. For those wine industries whose production have been started or would be started on or after 19th September, 2001, the excise duty will be charged at the rate of 25 per cent of the production expenditure incurred by such units. Such concessions will be admissible for period of 5 years. - 54 -
  • Indian Wine Industry Report 2005 4. Concessions in Sales Tax: It has been decided with the consent of all states in the country that the floor rate of Sales Tax on liquor will be at the rate of 20 per cent. However, the Wine Process is totally different from the Liquor Production Process and wine unit is considered as agriculture process unit by the Central Government. Therefore, to encourage the Grapes Processing Industry in the state, a request will be made to the Empowered Committee of Finance Ministers of all states constituted by the Government of India to reduce the floor rate of Sales Tax on wine. 5. Wine Sales License: Wine will be permitted for sale by Beer Bars and also licenses will be given to Wine Bars to sell wine on the basis of Beer Bars. 6. Wine Sales License Fee: An amount of Rs. 5000/- per year will be charged for License Fee for the sale of wine and this rate will not be changed for next 10 years. 7. Simplification in the system of License/Permission for Wine Production: If Wine production is taken in Winery Park as declared by the State Government, Wine Product License will be given at district level at the time of allotment of Plot. In other places for Wine Production, by simplifying the system of License the Collector of the district level will be empowered with a binding condition to issue licenses within 30 days. 8. Establishment of Wine Institute: To maintain the quality of Wine at the International Level and to make available trained manpower, a separate Wine Institute will be established. For setting up of the Wine Institute, Government/ MIDC will allot the plot at the nominal rate as given to the other educational institute. Such Institute will look after the work of training, checking the quality of wine, research and information centre for the Wine Industry. These institutes will be established by forming separate trust firstly at Sangli and Nashik. For this purpose, by choosing appropriate alternative from the following alternatives, training institutes will be established:- a) To help the existing trust for formation of training centre. b) To establish training institute in joint venture with the existing trust. c) To establish training institute by creating a separate trust. 9. One Window System: For Winery Industry, essential license, plot, electricity supply, telephone etc. infrastructure will be made available with One Window System. 10. Establishment of Grapes Board: A Grape Processing Industry Board would be established for Wine and other Grape Processing Industry in Maharashtra. The Board will consist of representatives from the concerned industry, Grapes producing farmers, State Government, government laboratories, wine institute etc. The organisation and functions of similar kinds of Boards existing in other countries will be examined before establishment of Grape - 55 -
  • Indian Wine Industry Report 2005 Board in Maharashtra on same standards. The jurisdiction of the said Grapes Board will be as under: a) To inspect and control the Quality of Grape Cultivation and Wine Production. b) To give approval to Labels. c) To inspect Quality and Standard Norms. d) To draft various Schemes for Sale of Processed Grape Products on the Global Level. 11 Facilities of Food Processing Industries: The facilities which are given to the food processing industry units, will be given to the Winery Product Units by giving them the status of Food Processing Units. 12 Wine Product Units - Permission for the Tourists: In foreign countries, permission is given to watch the Wine Product Units. In similar manner, in Maharashtra also, permission will be given to the tourists to visit Wine Product Units for testing the wine. Also, licenses will be given to such Wine Product Units to sale wine on retail basis. Taxation on Imported Wine: a) Excise Duty in Maharashtra is 101.25 per litre for BIO products. Per bottle the duty is approx Rs.77. b) Fees on Labels and Brand: Maharashtra registration fees are Rs.10000 for a brand and Rs.7500 for each label subsequently. 14. Grapes Processing Industry - Easiness in the control of Excise Duty Dept.: To simplify the procedure in the collection of excise duty and for creating easiness in the control of Excise Dept., a committee would be constituted under the Chairmanship of Principal Secretary (Excise) as under:- 1. Principal Secretary (Excise), Home Dept. Chairman 2. Secretary (Industries) Member 3. Secretary (Agriculture) Member 4. Development Commissioner (Industries) Member 5. Representative of Winery Product Units Member 6. Managing Director, MTDC Member 7. Commissioner (Excise Dept.) Member Secretary (Source: website of midcindia.com) - 56 -
  • Indian Wine Industry Report 2005 US wine import summary Total US wine market 680 mn gallons= 280mn cases US import 25% of its wine requirement. US import approx 175 mn gallons = 73 mn cases 1995 and then 2000 saw a huge increases in the market: One of the Major reason – Media reports on “Benefits of Wine on Health” The top wine importers to US 1. Italy- 60 mn gallons = 24 mn cases 2. Australia 50 mn gallons = 20 mn cases 3. France Top Varietals - Chardonnay - Sauvignon Blanc - Zinfandel Imported Wine Sale in US Price range: $6-$7 Few tips for exporters to US  Target small wholesalers  Euro and Aust. Dollar rising a good sign for Indians for price competitiveness. US Wine Consumption characteristics 1. 35% of adult population drink wine 2. 40% of the wine drinking population drinks more than a bottle per month. 3. Wine drinking association: relaxing, romantic, intimate, to be consumed during social gatherings and special occasions. However many people drink wine to complement the food, unwind and relax! 4. Americans have limited knowledge when selecting a good wine and are most comfortable with wines they already know! 5. Los Alamos is Top County for wine consumption. - 57 -
  • Indian Wine Industry Report 2005 Canada’s wine import summary Total wine market Canada: 30 mn cases Imported wine: 65% = 20 mn cases Four largest wine markets in Canada Quebec 65% or 2/3rd of wine Ontario market Columbia 15 Alberta 20 Largest exporters to Canada 1. France 2. US – approx 20% share One of the challenges facing exporters of wine to Canada is the wine distribution system, which differs in each of the 12 Canadian provinces. Each province has a liquor control board, and these boards are the only entities that can legally import wine into Canada. In most provinces, these liquor authorities manage retail stores and license agency stores. An exception is the province of Alberta, which, in 1993, privatized all liquor retailing. The Alberta Liquor Control Board continues to act as the importer and wholesaler of wine. Exporters interested in the Canadian wine market should contact the liquor board in the provinces they are targeting for a list of registered agents. A list of provincial and territorial liquor boards may be requested from the U.S. agricultural office in Ottawa. Kathleen Wainio is the U.S. agricultural attache at the U.S. Embassy in Ottawa, Canada. Tel.: (613) 238-5335, ext. 267; Fax: (613) 233-8511; E-mail: agottawa@fas.usda.gov - 58 -
  • Indian Wine Industry Report 2005 Foreign tourists in India Annexure 23 Foreign Tourists visiting India Year Numbers in mln % Change 1995 2.1 2000 2.65 6.7 2001 2.54 -1 2002 2.38 -6 2003 2.75 15.3 2004 3.16 15 Annexure 24 Foreign Tourists visiting India projections Year Numbers in Mln % Change 2005 3.67 16 2006 4.29 17 2007 5.11 19 2008 6.13 20 2009 7.48 22 2010 9.35 25 - 59 -
  • Indian Wine Industry Report 2005 Contact Mr. Sameer Bagul Director DSM Marketing Pvt. Ltd. 401, Pushpagriha 16th Road, Bandra West Mumbai 400050 # 91-9820184147 sameerbagul@gmail.com Mr. Aakash Singh Rathore Director DSM Marketing Pvt, Ltd. #91-9891470808 aakashsinghrathore@yahoo.com Please fee free to write to us for any query on the data or ratings of Indian Wines. You can send us your email and contact details so that we can update you of any changes in the market. DISCLAMIER The information about the products, companies published in this report are provided by DSM marketing on the basis of the information received from the product manufacturers, secondary reports, published articles in media and is on an "as is where is" basis. With respect to all information contained in this report, DSM Marketing Pvt. Ltd., and its directors, officers, agents, or employees make no warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained therein. DSM Marketing does not warrant that the information or services of the Report will meet any specific requirements; nor will it be error-free or uninterrupted; nor shall DSM Marketing be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use, operation, or inability to use this Report. Under no circumstances will DSM Marketing and/or its affiliates or associates or of its third-party information providers be liable for any loss or damage caused by anyone’s reliance on information contained in this report. The information contained in this report is for personal use only. You may take print outs or download the same provided you keep the material intact and do not violate the copyrights, trademarks, and other proprietary rights. Any alteration of the report or use of the information contained in this report for any other purpose is a violation of the copyright of DSM Marketing Pvt. Ltd. and/or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from DSM Marketing Pvt. Ltd. - 60 -
  • Indian Wine Industry Report 2005 Table of Contents..................................................................................................2 SUMMARY ...........................................................................................................4 HISTORY..............................................................................................................5 CURRENT SCENARIO.........................................................................................6 CATEGORIES ......................................................................................................7 WINE GRAPE REGIONS IN INDIA ......................................................................8 MARKET SIZE 2005 ...........................................................................................11 MARKET SHARE................................................................................................12 SWOT Analysis of the Market .............................................................................17 PRICE SEGMENTATION ...................................................................................18 CONSUMER SEGMENTATION .........................................................................19 MARKET PLAYERS AND WINERIES ................................................................20 BOSCA Baramati Grape Industries .................................................................21 BLUESTAR WINERY ......................................................................................21 DAJEEBAH WINES (Data cone Winery).........................................................21 FLAMINGO WINES.........................................................................................22 GROVER VINEYARDS ...................................................................................22 INDAGE (Champagne Indage)........................................................................22 N.C. FINE WINES ...........................................................................................23 N.D. WINES ( Own labels discontinued since 2005) .......................................23 PRATHMESH WINES .....................................................................................24 PRINCESS (In-Vogue Creations)....................................................................24 PYRAMID WINES ...........................................................................................24 RAJDHEER WINES ........................................................................................25 SAI KRIPA WINERY .......................................................................................25 SHAW WALLACE ...........................................................................................25 VINBROS & CO. .............................................................................................26 VINICOLA .......................................................................................................26 VINSURA (Sankalp Winery) ............................................................................27 OTHER WINERIES .........................................................................................28 KEY IMPORTERS ..............................................................................................29 Annexure 1 ......................................................................................................31 Annexure 2 ......................................................................................................31 Annexure 3 ......................................................................................................32 Annexure 4 ......................................................................................................32 Annexure 5 ......................................................................................................33 Annexure 6 ......................................................................................................33 Annexure 7 ......................................................................................................34 Annexure 8 ......................................................................................................34 Annexure 9 ......................................................................................................36 Annexure 10 ....................................................................................................36 Annexure 11 ....................................................................................................37 Annexure 12 ....................................................................................................37 Annexure 13 ....................................................................................................38 Annexure 14 ....................................................................................................38 - 61 -
  • Indian Wine Industry Report 2005 Annexure 15 ....................................................................................................39 Annexure 16 ....................................................................................................39 Annexure 17 ....................................................................................................41 Sauvignon Blanc..........................................................................................41 Chenin Blanc ...............................................................................................41 Cabernet Sauvignon ....................................................................................42 Zinfandel ......................................................................................................42 Rose` ...........................................................................................................42 Annexure 18 ....................................................................................................43 Annexure 19 ....................................................................................................44 Annexure 20 ....................................................................................................45 Annexure 21 ....................................................................................................46 Annexure 22 ....................................................................................................49 Annexure 23 ....................................................................................................59 Annexure 24…………………………………………………………………………57 Contact ...............................................................................................................60 - 62 -