12897805 an Analysis on Indian Wine INdustry

8/13/2019 12897805 an Analysis on Indian Wine INdustry

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An Analysis on

Wine industry inIndia

A Presentation byS.Siyamalan

S.R.Swaminathan

Tamil Nadu Agricultural University



Synopsis

• Wine consumption --Preferences

• Government Support

• The ar!et

• Scenario in southernre"ions

• The essentials#a$oraspects

• Problems faced



Introduction

% The People of India

–Annual Per &apita Income Risin"

–'ar"e Population Gives a ar!et (ase

% Government (ac!ed Industry –Wine )eclared as *Small Scale+

% Grape is "rown over , ha - productionof /., T

% Wine Industry Potential

–ar!et &urrently in Infancy Sta"e

–Wines (e"innin" to &atch 0n 'ocally andGlobally Source : FAO, 2005



The People

Indian Economy

2

005

2

006

2

007

2

008

2

009

2

010

Population 1millions2/34.

5///.

5//64.

5//5.

6//44.

//,3.

7

Household consumption (US$

illion!2028 2210 2"19 2651 2910 #176

% The risin" middle class within India is brin"in" withit a hi"her rate of consumption

% Wine consumption is also increasin" at a rate of05ml pe% yea%& pe% pe%son

Growth8 39 3.5 3.4 3.73./

Source: Yura Beverages



Government Support

• Wine )eclared as a *Small Scale+ Industry

– anufacturers e:empted from e:cise duties

• ;< Wineries &urrently in 0peration

– ;, located within aharashtra – 4.5mn liters produced annually within

aharashtra

– India totals 7,6 cases sold per year

State 'an o) India* )o% the )i%st time in the count%y*has taen the initiati+e )o% helpin, the ,%ape "rowersvia pro$ect =PT>&?



Government support &ontd..

• Theconcessions#incentives#subsidies "rants etc. are e:tended to

*Wine Industry+ at par with@ood Processin" industries

pro$ect subsidy of Rs.4la!hs#wine unit

Rs./ la!hs per yeartowards procurement of"rapes

"rant of Rs.5 crores # wine



The ar!et

• Wine e:panded phenomenally by around /<9 in67

• Total Indian &onsumption has risen to ,4

cases 167-6<2 – ,-7ml annual per capital consumption

• Tar"et ar!et

– iddle class a"es 64-;3

– &urrent bi""est wine consumers

• Trendy upper class

Source: Food Press Release





&onsumer Preferences

-ine .onsumption

Red 549

White 59

Spar!lin" /;9

RosF 69

% Traditional Red and White wines accountfor <49 of Indian wine consumption

Source: Food Press Release



The &urrent Scenarioin Southern Re"ions



Indi"enous Wineries• &hateau Inda"e

– /< types of wine• Chardonnay, Cabernet Sauvignon,

Ugni Blanc,

Pinot oir, Gamay, !iesling, Muscat o" Ale#andria

Sauvignon Blanc, Chenin Blanc, $in"andel,

%iognier, Shira&, Malbec and Grenache

• Grover Eineyards

– Dine varieties• $in"andel ,Chardonnay, Pinot oir,

Sauvignon Blanc, CheninBlanc,%iognier, Shira&,

%iognier and Semillon

• Sula winery



aharashtra wine Grapepolicies

• )eclaration as a Preferential Area

• )eclaration as a Small ScaleIndustry

• &oncessions in >:cise )uty• &oncessions in Sales Ta:

• Wine Sales 'icense

• Wine Sales 'icense @ee

• Simplification in the system of'icense

• >stablishment of Wine Institute

• 0ne Window System

• >stablishment of Grapes (oard



Wine Par!s

• To encoura"e value addition on "rapes

• Grape (oard

– for uality control certification and e:portpromotion.

• Wine Institute

– lon"-term "rowth strate"y.

• I)& has set up Wine Par!s with Internationalcomparable infrastructure

– at Einchur near Dashi! H Palus near San"li



Carnata!a

• The Government intends to

– >stablish two Wine Parks

– .apital In+estment Susidy

– Subsidy for /%ape %ocessin,

– Incenti+es for mar!etin" and distribution ofines



Andhra

• Government of Andhra Pradesh has issuedG.0.framin" new rules on Winery pro$ects.

• Eery low fee of Rs. 6 per annum is fi:ed aslicense fee to encoura"e this industry.

• Government may call for applications for "rant of

letters of intent in the near future.



-ine%y %oect in 3amil4adu

• Tamil Dadu produces 3 tonnes of uscatGrapes and / tonnes of Thomson SeedlessGrapes.

• Government of Tamil Dadu has issued aDotification on Tamil Dadu Wine anufactureRules 6, for re"ulatin" manufacture of wine.

• Government of Tamil Dadu has approved the

proposal of TI)&0 for establishin" a Winery

3I.s Initiati+e TI)&0 proposes to establish wine ma!in" units in association withprivate sector.

The prospective entrepreneurs may li!e to contact Thiru (.Rama!rishnan General ana"er TI)&0 for further details at &ell



a$or aspects

• The primary factors actin" asconstrain for this industry in India.

• At the very outset we have fourma$or issues to note8/. 'e"al aspect

6. Global aspect

;. Social aspect and

5. Promotional aspect.



Problems @aced..

• Wine drin!in" has not cau"ht on

– uality wines are priced relatively hi"h.

– Since the volumes are low production costs

are hi"h as are ta:es.

• Real challen"e -to develop a domestic mar!et

• ?u"e prohibitin" factor - ; per cent duty slab

• To distribute finished "oods



Earious ta:es and duties applicable tothe wine industry

• >:cise )uty

• Additional )uty

• ar!ets H Re"ulations

• &entre for &ivil Society

• )istillery#(rewery 'icense@ee

• (ottlin" fee

• 'ittera"e fee

• Assessment @ee

• @ranchise @ee

• Permit @ee

• Earious ta:es and duties

applicable to the wine

• Raw aterial >:cise• Availability @ee• (rand#'abel @ee• Transportation @ee

• Import Pass @ee• >:port Pass @ee• Eend @ee• Sales Ta:#Surchar"e• 'icense @ee

• Toll Ta:• >:cise )uty

• Additional )uty

• Gallon a"e @ee



Standards

• >thyl alcohol -prescribed in 5 of IS #7521988

– >nforced by State >:cise Authority

• @ood additives - P@A #&0)> #B>&@A

• @lavor -P@A#@>A GRAS• &arbonation -Grade 6 of IS ;78/33,

• Pac!in"

– "lass bottles -IS 1662197"

– plastic bottles made of P>T -IS 1"5#71998

• Samplin" - IS #75#198"



&onclusion

• Presently Indian wine industry is in a nascent sta"ethou"h it has !ic! started only from aharashtramuch remains to be seen at the national level.

• Indians will have to descriminate wines with otheralcoholic liours.

• The wine in fact is a social and health drin! – its consumption has to be promoted throu"h various

media campai"ns and wine festivals.

-e hope* suse:uently the%e e;ists ahu,e scope )o% e;pansionin a%ea and p%oduction o) ine ,%apes in ou%count%y





References

/. ultiple aspects of Indian Wine Industry

K Carni!a Seth

L Present Scenario of wine industry in India

K G.S.Caribasappa , P.G.Adsule S.).Sawant and C.(aner$eeD.R.&. for "rapes an$ri @arm Pune 5/6 ;7.

;. Wine pro$ect API&T0

5. Winery Pro$ect TI)&0

4. aharashtraMs "rape policy 6/

,. Carnata!a Grape Processin" and Wine Policy 67

7. )M>ssenceconsultin" WineReport

<. Wine Industry in aharashtra

K Sudipto itra

Documents

12897805 an Analysis on Indian Wine INdustry