Wine in India is a nascent but fast growing industry dominated by a few major domestic producers and importers. Consumption is concentrated in major cities and favored for still wines. Key drivers of growth include rising consumer awareness, positive government initiatives, and efforts to improve affordability and availability. However, inconsistent quality, varying state-level alcohol policies, and bans on advertising present challenges. New entrants and partnerships between foreign brands and importers are increasing competition, while private equity investments signal confidence in the industry's potential.

1. Wines - India
December 2008

2. Executive Summary
Nascent albeit a fast growing industry
Estimated worth USD XX mn in 2007 & forecast to reach USD YY mn in 2011
Market Dominated by still wines although a market exists for sparkling and fortified wines
A accounts for bulk of production; B and C account for a% of consumption
LE
Drivers: Rising consumer awareness, positive government initiatives, and efforts toward making
Drivers & wine more affordable and available
Challenges
P
Challenges: Inconsistent quality, variance in state-level policies, and ban on alcohol advertising
M
Trends SA
New entrants from India and abroad expected to increase competition
Industry is attracting private equity investors with three transactions in recent years
Emerging strategies and business models include:
– Contract bottling
– Alliances between importers and foreign brands
– Partnerships with retailers in states permitting sale through supermarkets
Three major domestic players dominate b% of domestic production
Competition – A, B, C and D
Top five importers control a% of import market are led by U, V and W
WINES – INDIA . PPT 2

3. Contents
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
WINES – INDIA . PPT 3

4. Wine in India is a nascent but fast growing industry with consumption
concentrated in metros and in favour of still wines
Consumption Volume and growth
•Nascent industry albeit a fast growing one Volume
mn litres %
attracting a number of domestic Growth
b%
20 B 50
entrepreneurs, foreign firms, and importers A
15 Z 40
•Low per capita consumption of A l compared a%
LE
Y 30
to other countries as well as domestic 10 X
V W 20
U
P
consumption of spirits and beer 5 10
•Wine drinking is metro phenomenon with 0 0
Mumbai and Delhi accounting for b%
SAM
Consumption in other cities and regions is low due
to high price relative to beer and spirits as well as
distribution hurdles impacting availability
Segments
2004 2005 2006 2007 2008 2009 2010 2011
Others
Forecast
Red
u%
•~x% of wine sold is priced below USD XX and e% Mumbai
a%
y% under USD YY Goa d%
c% Rose w%
•Preferences are largely toward still wines Bangalore b% v%
(traditional red and whites) although a market
Delhi White
exists for sparkling and fortified wines
Price points (USD) vs. sales
z%
x% y% a%
< 10 10-20 20-30 > 30
Source:
WINES – INDIA . PPT 4

5. Drivers and challenges
Challenges
Drivers Inconsistent quality
Consumer awareness and perception
Variance in state-level policies
Government initiatives Advertising ban on alcohol
Affordability
Availability
WINES – INDIA . PPT 5

6. Key Trends
New entrants from India and
abroad likely to increase
competition as well as provide
more choice to the consumer
Trends
Emerging strategies such as
contract bottling, alliances with Investments made by PE players
importers and partnerships with indicates industry potential
retail chains
WINES – INDIA . PPT 6

7. X, Y, and Z dominate the domestic market although new entrants are
expected to increase competition
Domestic producers Market share – Production (2008 est.)
•Total number of wineries is estimated to be X
with the maximum located in Maharashtra
•Dominated by three players, which account for
an estimated a% share:
LE
Company Y
X
b%
Y
Z
•Other major producers include U, V and W
MP 42% 35% Company Z
c%
entrants – domestic and imports
•New entrants:
SA
•Competition is expected to increase with more
a%
e%
d% Company U
f%
Company V
Others
A, which controls close to b% of Indian alcohol Company X
market
C and D are other major players
Source:
WINES – INDIA . PPT 7

8. Thank you for the attention
The Wines report is a part of Netscribes’ Food & Beverage Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment
& business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a
true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and
growth objectives.
This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt.
Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes
(India) Pvt. Ltd. and no part may be reproduced without prior written permission.
www.netscribes.com
WINES – INDIA . PPT 8