The Future of the Indian
Wine Industry

chillibreeze writer — Sony Patel

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A four-course meal, sophisticated conversation and an array of wines—this has become a common occurrence amongst the trend-setting class across the country.

A taste for wine is now a sign of sophistication among Indians who have grown wealthy with the booming economy. Other than the emergence of the upper middle class, the youth of today have started opting more and more for wine, citing health reasons.

Customising it to the Indian palette, wine is now being served with desi Indian food. In fact, Mr. Rastogi, International Trade Manager, Escorts is looking for a formal training, wherein he can understand the nuances of fine wine, so that he does not feel like a novice.

Accordingly, the domestic wine market has also changed. According to Mr. Arend Heijbroek of food and agribusiness research and advisory, Rabobank International, the domestic market size is around 1 million cases per year and is growing at about 35 per cent. Chateau Indage (Indage Group) leads the market with over 35 per cent share followed by Sula Wines with 15 per cent and Grover Vineyards with 8 per cent.

Compare these figures: Italy, a developed country consumes 50 litres per capita, China is 5 litres consumption per capita and India consumes barely a teaspoon. In spite of these disheartening numbers, global industry giants are optimistic about the industry growing at a rate of 20-30 per cent per year over the next decade.

Currently, around 5,000 acres of land in seven districts of Maharashtra are under wine-grape cultivation. Grape crushing is an annual activity that happens in February every year.

Nasik, the country’s unofficial wine district is witnessing a new trend: wine tourism. Set up a winery premises and voila… thirsty tourists come flocking! This is done through associations with tour operators or hotels, which will put a clutch of wineries on the tourist map.

Young professionals have set up this trend, making it more market savvy. The move is important since marketing is seen as the major shortcoming for an industry necessarily located in remote areas, where the vineyards are actually located. Hence, wine tourism helps to push the wine consumption further in India.

The subsequent growth in the wine industry will be directly beneficial to farmers who cultivate wine varieties of grapes. This would also create job opportunities in the rural areas. The Government of India and different State governments should realise this potential and promote wines.

In India, wine is considered as any other alcohol beverage like vodka, while in countries like USA and Europe, wine is always separated from alcohol for licensing procedures. In these countries, the retail price of wine is hardly 30-40 per cent more than ex-winery prices; in India, the minimum is 100 per cent and can go up to 300 per cent in certain States.

Considering the health benefits of wines and the fact that it is associated with food, the authorities should look at its potential and take measures to promote the Indian wine industry.

The wine market in India today is still in its nascent stage. A lot needs to be done in terms of education, awareness and demystifying wine as a product. As Mr. Rajeev Samant, CEO and Founder of Sula Vineyards, very eloquently put it to Good Housekeeping, "This is an industry whose time has come!"

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—About our writer: Sony writes for Chillibreeze.

 

 

 

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