Wines India Sample

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Wines India Sample

  1. 1. Wines - India December 2008
  2. 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. 3. Contents •Market Overview •Drivers & Challenges •Trends •Competition •Key Developments WINES – INDIA . PPT 3
  4. 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. 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. 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. 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. 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

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