With wine drinking becoming a social norm among various sections of the Indian society, foreign wine makers are now making a beeline to tap the wine market in India. Indian firms who till very recently stayed away from the wine market have made their foray with existing domestic players trying to expand their markets across the country while also launching new wines.
"The consumption of wine is very low in India as compared to the western European countries. It is only now that wine is becoming a part of lifestyle for many. The potential that India offers to the Indian wine industry is just astronomical," says chairman, N D wines, Ashok Gaikwad. N D wines, which is a prominent domestic wine manufacturer recently launched their wine in the Delhi market and plans to spread its area of operation across the country.
Gaikwad points out that per capita wine consumption in India is 0.007 litre as compared to some western countries where it can be as high as 60 litre. Recently, liquor baron Vijay Mallya's UB group made its foray into this segment and plans to launch close to 30 labels by January 2008.
"The market is growing at 25-30 per cent per annum. The main growth drivers are that Indians are rapidly taking to wine. The young crowd sees wine as a trendy drink while the old consume it for health benefits. Even women are taking to wine as it is socially acceptable. Besides wine is now freely available and accessible with modern retail centres," says Aman Dhall, executive director, Brindco Sales, one of the largest importers and distributors of foreign wines in India.
According to industry estimates, the total consumption of wines in India is around 12 lakh cases per year with foreign players constituting 20 per cent of the total sales
Sources in the wine industry point out that the main driving force for the market is the 'DINK' (Double Income, No kids) phenomenon. They point that double income households with more cash with them is the main clientele for the wine promoters.
For Ira Sharma, a senior executive with an airlines firm, wine is now a part of their frequent 'get-togethers'. "Wine is nice when you just want to have some fun with your friends while not getting drunk. It nice to have with dinner too and also makes a great gift," she says. "I hardly now know of anyone who has not incorporated wine into their lifestyle," she adds.
Even five-star hotels agree to the trend of more and more young Indians taking to wine and are now stocking themselves with the finest wines to cater to the demand. "Wine is definitely making its presence felt more than before. People now genuinely want to have a great time without getting any hangover. Moreover, it is also very stylish," says Rifaquat Mirza, 'The Park' in the capital.
Wineries are mostly located in the state of Maharashtra and firms argue that both the climatic conditions and the active interest shown by the state government to promote the same has helped.
"The government gives 'zero excise' duty benefits to wines produced in Maharashtra. This helps wineries in marketing their wines. Government has also set up wine parks in the state,' says Dhall.
The state government under the 'Grape Processing Industrial Policy' has been promoting the interest of the wine making firms through various initiatives.
While the Indian market is basically very price sensitive, foreign players are very optimistic. "We don't have any competition with Indian wines. We are also pricing our products very aggressively. But, yes since we have much finer products, the cost will be a little higher. We are happy with our performance and are excited about future prospects since more and more people will now look out for finer wines," says a top official with a foreign wine maker.
