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An Analysis on

Wine industry in
A Presentation by
Tamil Nadu Agricultural University

• Wine consumption
• Government Support
• The Market
• Scenario in southern regions
• The essentials/Major aspects
• Problems faced

000 ha .Introduction □ The People of India –Annual Per Capita Income Rising –Large Population Gives a Market Base □ Government Backed Industry –Wine Declared as “Small Scale” □ Grape is grown over 60.6 MT □ Wine Industry Potential –Market Currently in Infancy Stage –Wines Beginning to Catch On Locally and Globally Source : FAO. 2005 .production of 1.

4 1.1 9% 9. 4 1. 7 Household consumption (US$ billion) 2028 2210 2419 2651 2910 3176 Growth: 9.4 9.5ml per year/ per person . 0 1.The People Source: Yura Beverag Indian Economy 200 5 200 6 200 7 200 8 200 9 201 0 Population (millions) 1.7 □ The rising middle class within India is bringing with it a higher rate of consumption □ Wine consumption is also increasing at a rate of 0.140. 2 9.110. 4 1.125.

for the first time in the country.Government Support • Wine Declared as a “Small Scale” Industry – Manufacturers exempted from excise duties • 38 Wineries Currently in Operation – 36 located within Maharashtra – 5.4mn liters produced annually within Maharashtra – India totals 762.000 cases sold per year State Bank of India. has taken the initiative for helping the grape growers via project UPTECH .

Government support Contd.50 lakhs/wine unit – Rs.10 lakhs per year towards procurement of grapes – grant of Rs.4 crores / wine park . are extended to “Wine Industry” at par with Food Processing industries – project subsidy of Rs.. • The concessions/incentives/subsidies grants etc.

000 cases (2007-2008) – 6-7ml annual per capital consumption • Target Market – Middle class ages 25-39 – Current biggest wine consumers • Trendy upper class .The Market Source: Food Press Relea • Wine expanded phenomenally by around 18% in 2007 • Total Indian Consumption has risen to 650.

APBC in Andhra Pradesh and The DSIDC in Delhi .Marketing • Open Markets – Maharashtra. Meghalaya. Madhya Pradesh. Haryana and Chandigarh • Government Markets – The governments of the respective states act as the wholesalers – TASMAC in Tamil Nadu. Bihar. Assam. Jammu Kashmir. • Auction Markets – Rajasthan. and Arunachal Pradesh. Goa. BEVCO in Kerala. Tripura.

Consumer Preferences Source: Food Press Release Wine Consumption Red 45% White 40% Sparkling 13% Rosé 2% □Traditional Red and White wines account for 85% of Indian wine consumption .

The Current Scenario in Southern Regions .

Ugni Blanc.Chardonnay. Sauvignon Blanc. Pinot Noir. Viognier. Cabernet Sauvignon.Viognier.Indigenous Wineries • Chateau Indage – 18 types of wine • Chardonnay. Chenin Blanc. Pinot Noir. Shiraz. Malbec  and Grenache • Grover Vineyards – Nine varieties • Zinfandel . Shiraz. Sula Seco and Sauvignon Blanc . Viognier and Semillon • Sula winery • Sula Brut. Chenin Blanc. Riesling. Muscat of Alexandria Sauvignon Blanc. Gamay. Zinfandel.

Maharashtra wine Grape policies • • • • • • • • • • • Declaration as a Preferential Area Declaration as a Small Scale Industry Concessions in Excise Duty Concessions in Sales Tax Wine Sales License Wine Sales License Fee Simplification in the system of License Establishment of Wine Institute One Window System Establishment of Grapes Board Facilities of Food Processing Industries .

certification and export promotion. near Sangli . • MIDC has set up Wine Parks with International comparable infrastructure – at Vinchur. • Wine Institute – long-term growth strategy. near Nashik & Palus.Wine Parks • To encourage value addition on grapes • Grape Board – for quality control.

Karnataka • The Government intends to – Establish two Wine Parks. – Capital Investment Subsidy – Subsidy for Grape Processing – Incentives for marketing and distribution of wines .

• Very low fee of Rs.framing new rules on Winery projects. • Government may call for applications for grant of letters of intent in the near future.Andhra • Government of Andhra Pradesh has issued G. 2000 per annum is fixed as license fee to encourage this industry. .O.

TIDCO for further details at Cell No. • Government of Tamil Nadu has issued a Notification on Tamil Nadu Wine Manufacture Rules 2006 for regulating manufacture of wine.Winery Project in Tamil Nadu • Tamil Nadu produces 90. . • Government of Tamil Nadu has approved the proposal of TIDCO for establishing a Winery TIDCO’s Initiative TIDCO proposes to establish wine making units in association with private sector.000 tonnes of Muscat Grapes and 10. The prospective entrepreneurs may like to contact Thiru B. General Manager.000 tonnes of Thomson Seedless Grapes. Ramakrishnan. 9444448994.

2. . 3. Legal aspect. • At the very outset we have four major issues to note: 1. 4. Social aspect and Promotional aspect. Global aspect.Major aspects • The primary factors acting as constrain for this industry in India.

.300 per cent duty slab • To distribute finished goods . • Real challenge -to develop a domestic market • Huge prohibiting factor . – Since the volumes are low.Problems Faced. production costs are high. as are taxes. • Wine drinking has not caught on – quality wines are priced relatively high.

Various taxes and duties applicable to the wine industry • • • • • • • • • • • Excise Duty Additional Duty Markets & Regulations Centre for Civil Society Distillery/Brewery License Fee Bottling fee Litterage fee Assessment Fee Franchise Fee Permit Fee Various taxes and duties applicable to the wine • • • • • • • • • • • • • Raw Material Excise Availability Fee Brand/Label Fee Transportation Fee Import Pass Fee Export Pass Fee Vend Fee Sales Tax/Surcharge License Fee Toll Tax Excise Duty Additional Duty Gallon age Fee .

Standards • Ethyl alcohol -prescribed in 4 of IS 3752:1988 – Enforced by State Excise Authority • Food additives .IS 3753:1984 .PFA /CODEX  /JECFA • Flavor -PFA/FEMA GRAS • Carbonation -Grade 2 of IS 307:1996 • Packing – glass bottles -IS 1662:1974 – plastic bottles made of  PET -IS 14537:1998  • Sampling .

subsequently there exists a huge scope for expansion in area and production of  wine grapes in our country.Conclusion •  Presently Indian wine industry is in a nascent stage. We  hope. • Indians  will have to descriminate  wines with other alcoholic liqours. • The  wine  in fact is  a social and health  drink. – its consumption  has to be promoted  through various  media  campaigns and  wine festivals. though it has kick started  only from Maharashtra much remains to be seen  at the  national level.  .


References 1.  P. 2. 8. 3. 6. 4. Wine project APICTO Winery Project TIDCO Maharashtra’s grape policy 2001 Karnataka Grape Processing and Wine Policy – 2007 D’Essenceconsulting – WineReport Wine Industry in Maharashtra − Sudipto Mitra .Karibasappa .Adsule .Banerjee N.C.Sawant and K. S.D. 7. Multiple aspects of Indian Wine Industry − Karnika Seth Present  Scenario  of  wine industry  in India − G. for grapes.S. Pune – 412 307. 5.G. Manjri Farm.R.