INTRODUCTION OF THE COMPANY

In India Karnataka is the one the potential states growing deferent verities of

quality grapes from decades keeping in mind the conductive climatic conditions

for grape growing “Elite vintage winery India Pvt ltd” The company has

intended to set up a winery & develop a quality wines to suit Indian and

International markets.

Enthusiastic willingness of dedicated were successful in convincing as to

venture into ancient & exquisite art of wine making under the banner of “Elite

vintage winery India Pvt. Ltd” and it was established in Sep. 2008. And it is

located in Malapur village, Tq: Mudhol, Dist: Bagalkot on the high way

surrounded by wine yards scattered in different areas to harvest the suitable

nature.

Foreseeing the growing demand of an Indian Wine market. 180 Acres of

plantation has been done in well planned wine yards keeping the provision for

future wine yards development.

“The state of the winery is opting to have well equipped wizard imported

machinery supplied by renowned legendary French / Italian. The winery has

planned the initial tank capacity of 7,30,000 litters.

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INDUSTRY PROFILE:

a) General introduction of the company

In India Karnataka is one of the potential states growing deferent verities of

quality grapes from decades keeping in mind the conductive climatic conditions

for grape growing “Elite vintage winery India Pvt ltd” The company has

intended to set up a winery & develop a quality wines to suit Indian and

International markets.

Enthusiastic willingness of dedicated were successful in convincing as to

venture into ancient & exquisite art of wine making under the banner of “Elite

vintage winery India Pvt. Ltd” and it was established in Sep. 2008. And it is

located in Malapur village, Tq: Mudhol, Dist: Bagalkot on the high way

surrounded by wine yards scattered in different areas to harvest the suitable

nature.

Foreseeing the growing demand of an Indian Wine market. 180 Acres of

plantation has been done in well planned wine yards keeping the provision for

future wine yards development.

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b) Theoretical introduction of the company

CURRENT SCENARIO :

Today the overall sales are around 7,30,000 cases a year. Table wines

account for 88-90 percent of the market and expensive varieties of vintage

wines account for the remaining 10-12 percent. Though the base of the market

is small at 7.3 lack cases / year currently the wine industry in India is growing at

the rate of more than 25% per annum.

There are three big companies presently making 'Premium' wine - Indage,

Sula and Grover Vineyards. Others (Shaw Wallace, McDowell’s and the six

Goa-based companies) produce cheaper wines from table grapes and the bulk

of the Goan output sis consumed within that state itself.

However, more and more wineries are being set up with the aim to

produce mainly international style' wines, namely Vinsura While Indage is

the ,market leader, Sula's volumes grew by over 65 per cent last year. Already

there are more than 30 wineries operational with over 100 Indian brands.

Australians being the best exporters are already here with Howling Wolves

wine Group (HWWG), Ironstone vineyards, Green point wines. Others include

Terraza, Casa Lapostolle from South America along with old liquor majors in

India like Seagram's and UDV. Sopexa, a French marketing and promotion

board has setup office in India with a plan to increase French wine import in

India by 50% in next two years.

In the next few years, there would be over 100 wineries of varying sizes

operating in the country, and with the government support in reduction of

duties, the prices would reduce leading to the growth in this industry. We

believe that this will lead to consolidation in the wine industry with few big

players and few small players in the market.

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CATEGORIES:

There are basically three types of wine:

1. Premium Wines (Still wines)

2. Sparkling Wines

3. Fortified wines

This report focuses on the largest and most important category of wines

(Premium wines), ignoring the cheaper country-made concoctions and fortified

wines, which are also not yet made or regarded as quality wines. In the Still

wine or premium wine category the Indian market is divided mainly into two

major categories: White and Red wines. Note: Sparkling is generally

considered in White category by many consumers.

Domestic Indian Wine :

This is the wine, which is produced from Indian grapes and bottled in India

by the domestic wineries.

Foreign Bulk Wine Bottled in India :

Few large domestic producers import bulk wine and bottle it in India

Foreign Wine Bottled in origin :

More than 200 brands are currently available in this category that are Imported

by Domestic players, Importers and Foreign players.

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WINE GRAPE REGIONS IN INDIA :

The Indian sub-continent has four major wine producing regions.

Nasik Region (Maharashtra State):

Location : Western India, Nasik Valley is 2000 ft. above sea level between

19-33' to 20-53' North latitude and 73-16' to 75-6' East longitude.

Sangli Region (Maharashtra State) :

Location : South West Maharashtra; Latitude 16-52' North, and Longitude

74-36 east Both of these regions are extremely good for growing grapes due

to its monsoon rains, rich fertile

Soil and cool climate. Most of the Indian Wineries are located in these two

regions including the largest Indage and Sula Vineyards.

Bangalore region (Karnataka state) :

Location: South West, Latitude: 12- 8'North. Longitude: 77-37' East Apart from

being nation's IT capital Bangalore because of its cool climate is suitable for

grapes. Grover, third largest wine producer of India, has its winery situated in

Doddballapur, 2000 ft above sea level, 45 km North of Bangalore.

Himachal region (Himachal Pradesh)

Location: 30-22' to 33-12' North Latitude and 75-47' to 79-04' East Longitude.

This region lies in the northern India and is at the same latitude of the South

Californian, Texas and north Florida wine grape growing region. Though this

region is well known for the apples and cider some of the good wine is

produced here. Temperature varies from 39° C in plains during summer- 20° C

in theAlpine Zone during winters. Rainfall varies from 152 cms to 178 cms in

outer Himalaya.

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THE POWER OF SUPPLIERS :

The wine industry's main suppliers are the grapes producers based in rural

India. Most of the farmers sell their produce through co-operatives or

individually to the wineries. The market is fragmented with small and medium

farmers planting common Varietals.

The top three wineries, integrating backwards, have planted grapes on

hundreds of acres of land to control the quality of produce, costs and Varietals

selection. However they also have signed long term contract with the local

farmers for primarily common varieties. Contractual farming is a win-win

situation for both farmers and wine producers but still it has long way to go.

As wine grape cultivation yield is very low compared to the table grape

varieties farmers are sceptical about the returns and hence contractual

agreement with the wine producers provide assured income. The farmers are

planting common varieties like Sauvignon Blanc.

A few large and medium farmers have planted Zinfandel and Chardonnay and

have higher bargaining power for these Varietals. The industry has also seen

forward integration with large farmers starting new wineries however are

unable to sell their product due to lack of expertise and understanding of the

consumer market.

As the wine industry will move from its current expansion phase to

consolidation phase and increased volumes the suppliers will be able to see

increased profits.

The other suppliers of bottles and corks (read importers) have good

bargaining power due to non-availability of corks in India and better glass

quality than Indian bottle manufacturers.

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THE POWER OF CONSUMERS :

Traditionally the wine consumer was in the niche segment and had fewer

options for Indian wine. The good wine in India was very expensive and the

less expensive Wine was of very poor quality. The wine was never meant for

the masses. However Growing awareness and changing lifestyles have

changed this scenario and suppliers today are forced to offer lower prices to

the consumers. The capacity increase is also responsible for the downturn of

the prices. The power of consumers is going to be high as the market

increases and more market players offering better quality wine.

THE THREAT OF NEW ENTRANTS :

The wine industry is not very capital intensive and with the government

subsidies it is Easier for new players to enter in the market. The current

government policies are pro new wineries with zero excise duties and low

license fees.

However the brand equity of old players and the economies of scale they

enjoy seriously threaten the new entrants. The industry and the products

require extensive brand Building efforts to create awareness and acceptability.

The new players not only have to Improve the quality of the wine but also have

to have deep pockets to spend heavily on Brand building efforts to sustain

themselves the good news for the new players is that the distribution channels

are open to new players willing to invest long term in the trade.

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THE THREAT OF SUBSTITUTES :

"A threat from substitutes exists if there are alternative products with lower

prices of better performance parameters for the same purpose" Substitutes

like beer and spirits pose a serious threat to the wine industry, as their market

is phenomenally bigger and growing and consumers switch very easily to

these alternatives. However the wine producers do not have to worry as the

wine industry has grown in the midst of these substitutes and carved a niche

for itself with loyal consumers. The wine has an inherent advantage of being

the healthier option to the empty calories of spirits and beer.

RIVALRY BETWEEN THE EXISTING PLAYERS :

The competition between the existing players has intensified with every one

trying to grab the share of small but increasing market though the market

growth rates are high it is on the smaller base. The current three big players

in coming years will be of similar size and compete with each other. The new

entrants are trying to offer better trade discounts to increase volume. There is

however a huge possibility that the market consolidation will lead to few large

players along with some small players creating product differentiation and co-

existing with sustainable market shares. The need of the market is everybody

working together to increase the market by creating awareness and educating

the customers about the wine drinking benefits. Big players along with the

government should come together to create a regulatory body for controlling

the quality and creating awareness programs across the country. Foreign

players entering India will pose threat to Indian wineries due to two main

weaknesses of Indian players viz, poor quality of wine and low investmen

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COMPANY PROFILE :

“The state of the winery is opting to have well equipped wizard imported

machinery supplied by renowned legendary French / Italian. The winery has

planned the initial tank capacity of 7,30,000 litters.

Plantation : 180 Acres (72,84,442 Hectares of Wine Yards)

Capacity of the plantation : 7,30,000 litres per year.

Man Power : Total 50 Employees.

Administrative Department : 5 numbers of Employees.

Production Department : 19 numbers of Employees.

Marketing Department : 26 numbers of Employees.

Total Project Cost : 9,00,00,000 Core.

Types of Wines : i) Red Wine &

ii) White Wine

iii ) Rose Wine

Status of the Company : Sole Proprietorship

Sources of Funds : a) Promoters Capital 7,00,00,000/-

b) Bank Loan 2,00,00,000/-

Products : Wines

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PRODUCT PROFILE:

CATEGORIES:

There are basically three types of wine

Sparkling Wines

Red wine

White wine

Rose wine

This report focuses on the largest and most important category of wines

(Premium wines), ignoring the cheaper country-made concoctions and fortified

wines, which are also not yet made or regarded as quality wines. In the Still

wine or premium wine category the Indian market is divided mainly into two

major categories: White and Red wines. Note: Sparkling is generally

considered in White category by many consumers.

Domestic Indian Wine :

This is the wine, which is produced from Indian grapes and bottled in

India by the domestic wineries

Foreign Bulk Wine Bottled in India :

Few large domestic producers import bulk wine and bottle it in India

Foreign Wine Bottled in origin :

More than 200 brands are currently available in this category that are Imported

by Domestic players, Importers and Foreign players.

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COMPANY VISION AND MISSION

VISSON:

Perfection is not an inherent gift to wine each element ripens & evolves.

“From grape to glass with treasured experience and tremendous care to

vibrant aromas, glorious textures and elegant flavours.

Winery aims to be the best vintage wine producer by

adopting ancient voyages to Vinland techniques using most efficient

engineering practices.

As many wineries believe – “Good taste is an important ingredient” the

utmost care has been taken to produce to best quality wines. The winery is

very well associated with various experts worldwide from the beginning to an

cash the world class manufacturing and storage technique for producing and

preserving wines

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MISSION:

To maximize creation of wealth, value and satisfaction for the

stakeholders.

To provide technology and services through sustained research and

development.

To foster a culture of participation and innovation for employee growth

and contribution.

To cultivate high standards of business ethics and Total Quality

Management (TQM) for a strong corporate identity and brand equity.

To help enrich the quality of the community and preserve ecological

balance and heritage through a strong environment conscience.

To develop healthy interpersonal relation and positive and discipline in

the organization.

Establish long term relationship with customers achieve lower possible

energy consumption.

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GOALS:

To earn a reasonable rate of interest on investment.

To maximize utilization of the existing facilities in order to improve

efficiency and increase productivity.

To further enhance distribution network for providing assured service to

customers throughout the country through expansion of reseller network

as per marketing plan.

To supply reliable quality wine to the customers.

To increase the production of wine capacity of 7,30,000 litres to

10,00,000 litres in future days.

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Organization Structure:

Vinod Guraddi

(MD)

Satish Nyamagouda Subu George Sumitra Malaghan

(Director) (Finance Director) (Director)

Girish Koraddi

(General Manger)

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1. HUMAN RESOURCE DEPARTMENT:

The Human Resource department is the primarily concerned with the

human constitution of an organization. It is concerned with the manpower

recruitment, remuneration, promotion, retirement etc., all related to human

resource or labours of the organization.

The Human Resource Department refers to the systematic approach to

the problem of selection, training motivating and retaining personnel in any

organization. It also considers with planning, organizing, directing the

personnel functions in the organization.

The department is also concerned with recruitment selection and placement.

1 Development and training to the workers.

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2 Development evaluation of the workers.

3 Wage and salary administration

In “ELITE VINTAGE WINERY” the General Manager takes all the above

responsibilities and undertakes the activities concerned with him only.

Suitable candidates are selected to a particular job according to their

qualification and experience.

There is no necessary to give training to the workers on separate

machine other than actual production process. Hence training is given on the

job only.

Manager and supervisor are continuously inspecting every worker to

access their performance and there is a better scope for hard workers.

TIME OFFICE

Time office is one of the important sections of administration department.

This section maintains the attendance of workers. It also shows records of a

particular worker about his working hours, etc. it evaluates the workers

punctuality, discipline and uniforms and maintains documents and records for

the future reference purpose.

FUNCTIONS:

1 Showing the absenteeism report of HOD

2 To maintain the attendance list of the workers every day.

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SECURITY OFFICE:

Security officer also one of the important section of the administration

department. There are 2 guards.

DUTIES OF SECURITY OFFICER:

1 Maintain the silencing in the factory area.

2 Time maintenance of workers.

3 Raw materials are checked according to the voucher.

4 Incoming materials are checked, if they are right, they will records

inward and seal the bill and leave inside.

5 If outgoing material from the industry that person must and should

have got pass and it is entered in outwards.

6 If goods are returnable, it will be entered in return A/C book.

7 All times of A/C’s are submitted to M.D. daily.

8 If the visitors are coming into the industry they must and should

get the permission of the security officer.

FACILITY TO WORKERS:

1 Availability of rest house.

2 Providing 2 wheelers for employees who are visiting the field to

supervise and check the availability of good grapes.

3 Executive levels are provided with 4 wheelers.

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4 Weekly one holiday is giving to the workers.

NATIONAL LEAVES:

The industry can give the leave for the national holidays; fair days of

national holidays should be given to the employees, such as Independence

Day, Republic Day, and Gandhi Jayanti etc.

DUTIES OF TIME OFFICE:

1 Maintenance of clock

2 Siren maintenance ( signal value )

3 Observation of employees

4 Maintaining Notice Board

5 Accepting leave letter application

6 Over time requisition

7 Absent statement

SHIFT WORKING:

In a shift of 8 hours factory is providing 4 types of shifts:

1st shift 6 am – 2 pm

2nd shift 2 pm – 10 pm

3rd shift 10 pm – 6 am

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General shift 8.30 am – 5.30 pm

The time office maintains register of muster role absenteeism, accident

report file and leave letter file.

OBJECTIVES OF HUMAN RESOURCE DEPARTMENT :

1 To maintain good relation between employer and employees.

2 To maintain good industrial relation.

3 To select right person at right job.

4 To cope with a chain.

5 To develop employees in organization.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT :

Recruitment

Job analysis and job description

Promotion

Wages and salary administration

Training and development

Records and incentives

Welfare maintenance

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H. R. D :

NUMBER OF WORKERS:

Officers 05

Regular 19

Marketing 26

Total 50

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MARKETING DEPARTMENT :

The term marketing has been derived from the word MARKET. Market is

generally understood as a place or geographical area where buyers and sellers

meet and enter in to transactions involving transfer of ownership of goods,

service, and security.

FEATURES OF MARKETING:-

1 It is consumer oriented.

2 It starts and ends with consumer.

3 Marketing is a system

4 It is a goal oriented.

5 Exchange process is the essence of marketing.

6 It is the guiding element of business.

Marketing is a social and managerial process by which individual and

group obtains what they need and what through creating, offering and

exchanging products of values with others. This marketing is important element

in every organization, which should be maintained compulsory in a systematic

manner.

The wine making industry can be one of the most lucrative business

opportunities. It's rich taste and the great flavour has a big mark, which is

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always there to greet the finest and wine, are not an exception. The art of wine

making can be mastered with constant efforts and use of the latest available

technology and marketing strategies.

Owing to liberalization policy' of the Government of India, the doors for

all types of industries have been opened. The nature of market has also been

undergone substantial change i.e. the market to buyers. This has created

competition, quality awareness among all the industries.

The wine industry is not an exception to this. Phenomenon and thus, the

future of wine making is very bright in India.

Per Capita Consumption of Wine:

If the per capita consumption of India is converted in simple terms it is

equivalent to half of the Tablespoon. Assuming the per capita consumption. In

India goes to meagre one Litre, the market size would be a mammoth 1 billion

Litres offering a tremendous opportunity to an entrepreneur.

GENERAL OVERVIEW:

Though the market share of wine among the alcoholic Beverages surely

but steadily increasing, still it is at a very primary stage. 'The challenge before

the wine makers in India is to develop the domestic market, as a majority of the

Indian consumers prefers beer, whiskey, rum and some times and even home

brewed spirits over champagne and wine.

The statistics on the Indian! Made Foreign Liquor (IMFL) shows that the

consumption of wine in India is not more than 2 % of the entire IMFL

consumption the international market is a promising arena for the Indian wine

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industry though at its infancy stage, is hoping to challenge the supremacy if

wine making countries in an effort to gain a foothold in the international wine

market though they get most of their technology and advice from Europe, Indian

winemakers are now promoting themselves in a big way to catch the attention

of the rest world. The favourable climatic conditions and superior quality of

Indian grapes would provide an added advantage to attain this objective.

MARKETING STRATEGY:

PHASE -I: CRETING AWARENESS:

Background:

It is imperative to create awareness about" wine among the Indian consumers.

Primarily to shift their preferences from other alcoholic drinks.

The liberalisation policy has given an entry to renowned foreign wine

brands to the Indian market. The availability of the foreign brands is increasing

as one can pick up the brand of his choice from the neighbourhood wine store.

Wine can be re1atively light on the pocket (there are a whole range of

wines to choose from starting at Rs. 400per 750 ml bottle and fashionable .the

components in wine have shown good health effects on wine drinkers. Recent

studies have shown that wine potentially prevents or delays the onset of cancer

eliminate bacteria which cause stomach poisoning.

Creating brand awareness:

The target segment for the product has to be affluent and the neo rich

consumers:

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1) The first approach that would taken up by the company is to have the

brand name displayed and propagated prominently through the

appropriate media, particularly word of mouth, private social gatherings,

affluent circles etc.

2) Articles regarding ‘art of drinking wine` and other related articles like non

vegetarian food with wine partying aspects can be brought out.

3) Platform such as Famine, health and other government magazines dealing

with food and Beverages may be used to publish the articles.

4) Assuming that the first batch of aged wine of the Company will ready by

November 2009, the activities of creating brand awareness’ should be

intensified from December end or beginning of January.

Creating retailer, dealers, push for the brand:

It is essential to create a strong push strategy aimed at dealers and

retail for the brand. The channel member is going to play the most crucial role in

promoting the product in the marketplace.

The beginning can be made with the channel members imparted with the

knowledge about wines in general as the types of wine, types of grapes .used,

manufacturing process employed and also the health aspect related to wines

this would be an important aspect in the relationship building exercise.

The meeting with retailers would provide an opportunity to obtain key

inputs in understanding the preference and psyche of the target consumer

within target market towns, the retailers could taken for a guided tour to the

wine yards during grape crushing festival and/or to see the entire process as

well as the establishment.

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PHASE – II: Product placement and brand positioning:

Now that the major exercise of creating awareness’ among the largest

consumers and channel member s has been achieved, November 2005, is the

time to introduce wine(s) in the market.

Intense promotional campaign at premium places and spots should be

conducted organizing Articulated high class events.

UPMARKETS BARS & CLUBS: The Company has opened dialogues

with the leading clubs and bars in major towns of Maharashtra, though the

discussions are at initial stages, the segment has responded very positively to

the company’s products.

Pubs are the place where anything new is always welcomed and

patronized. Upmarket pubs is one of the most important places where wine is

sought after the company is going to introduce its some of the loading pubs all

over Maharashtra.

a) BUSINESS & RECREATION CLUBS: these are the places

where wine is consumed on selective basis. Generally it is as these

clubs where one can find the real connoisseur of wine. They are the

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people who are fond of drinking different types of wine and make their

own judgement of wine.

b) PREMIUM CATEGORY CATERERS: caterers will be an

important segment to market the company’s wine as these serves the

needs at any events and ceremonies among the Elite society the

prompter are tapping these segments too.

c) EVENT MANAGERS: This is a new area of recent times,

rendering professional services for organizing mega activity/event, which will be

off immense help to promote the products. The specialised agency

arranging corporate luncheons. Dinners meeting rotary conventions film

personality get together, cocktail reception etc. It will be targeted to market the

product.

The activities can be organized through creating a sound battery off

sales personnel foe each district to develop and strengthen the contacts and

also to have timely liaison.

PROMOTINAL MEASURES:

Packaging :

Packaging the bottle in shape, colour and labels with an attractive styling

should catch the consumer’s attention i.e.in formation tags around the neek,

special gift pack with colourful Ribbon etc. This aspect is going to play a very

crucial role in establishing the brand in market place.

The company also intends to introduce certain concepts for the first time

Indian market i.e. distinctive logo, vintage dating, varietal labelling, use of flint

bottles etc.

Media :

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A press release is essential at the same time when the wine(s) are going to

distributed as free samples. The press can also be given tasters and also wine

tasters can be invited for this

Press release, the press may also be actively involved in the educating

process by having a similar guided tour for them as suggested for the retailers.

Marketing Process :

It starts with from factory to KSBCL (Karnataka State Beverages

Corporation Ltd.) From next onwards from KSBCL to distributors and also from

distributors to Bars & Clubs.

CONSUMER SEGMENTATION :

The Indian Market largely can be classified into two Segments

1. Domestic

2. Foreign Tourists

1. THE DOMESTIC:

A). Urban

The Urban population amounts to 48% of the total population in India and the

target segment amounts to 1% of the total urban population. E.g. the Total

Population of Mumbai is 1.5 crs The Total Urban population is 70 lacks, so the

target population is 7 lac. The characteristics of the target urban population

a. Income above Rs. 10 lac+

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i. Self employed ii. Service class

b. Income between 3 lac to 10 lac (Great Indian Middle Class)

i. Highly educated upwardly mobile

ii. Small business families

c. Income between 3 - 6 lac

i. Upper Middle class

B). Rural

a. Large farming community

b. Small business class

c. Govt. Service class

2. FOREIGN TOURISTS:

The tourism boom has resulted in 2.5 million of tourist visiting India last year

with a projected growth of 15 %. Embassies in the country also provide good

market for Indian wines

MARKET PLAYERS AND WINERIES:

There are numerous producers small and big across four major wine producing

regions in India. There are private individuals spreads out all over the country

trying their hand at producing wines in their own back gardens. But the major

producers, listed in alphabetical order, are these:

BOSCA (Baramati Grape Industries)

BLUESTAR WINERY

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DAJEEBAH WINES (Datacone Wine Industry)

FLAMINGO WINES

GROVER VINEYARDS

INDAGE (Champagne Indage)

N.C. FINE WINES

N.D. WINES

PRATHMESH WINES

PRINCESS (In-Vogue Creations)

PYRAMID WINES

RAJDHEER WINES

RENNAISSANCE WINES

SAILO WINES (V.M. Agrosoft)

SAIKRIPA WINERY

SHAW WALLACE

SULA VINEYARDS (Samant Soma Wines)

VINBROS&CO.

VINICOLA

KEY IMPORTERS:

The total current imports in India amount to 90000 cases from all the

importers. This

Number is growing at over 30% with list of importers increasing every year.

Sonarys Co-Brands Pvt. Ltd. ( Mumbai)

Brindco Sales ltd. ( Delhi)

Mohan Brothers RR (Delhi)

International Global Tax (Delhi)

Kiara Wines ( Mumbai)

Fairmacs Shipstores Pvt. Ltd. ( Chennai)

Star X wines ( Delhi)

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PURCHASE DEPARTMENT:

Purchase success and failure of any company depends on the cost of

materials, the proper buying of materials and procurement of materials at the

right time from the right source is having greater importance in any business.

There is a need for separate department for buying the materials known as

purchasing department.

The purchase section also connected to administrative department. In

This section is purchasing all types of materials for the factory, plant and

machinery.

This department also maintains the quality of raw materials, by taking the

sample of Grapes to laboratory test then if the raw material will below standard

then will be rejected, otherwise the raw material will be purchased at the

particular price.

FUNCTIONS OF PURCHASE DEPARTMENT:

Receiving purchasing requisition

Determining the volume of materials to be ordered

Placing orders

Inviting tenders and quotations from different suppliers

Checking and passing bills for payment.

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Receiving and inspecting materials.

QUALITIES OF PURCHASE MANAGER :

In the company or industry the purchaser manager has to follow the

following qualities.

Good knowledge of industry and material used in the industry.

Administrative and organizing ability

Honesty and integrity

Knowledge and contract of law

Knowledge of economic principles and demand and supply

Knowledge of government policies

RESPONSIBILITIES OF PURCHASING MANAGER :

Purchasing of materials at right time and in proper way from right source.

Receiving or materials.

Storing of materials.

Issuing of materials.

Accounting of materials.

Keeping proper records of material purchased.

Properly planned for material required.

Co-ordination and co-operation between different departments

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Contents:

1 process

2 the grapes

3 harvesting and destemming

4 crushing and primary fermentation

4.1 pressing

4.2 pigeage

5 cold and heat stabilization

6 secondary fermentation and bulk aging

7 malolactic fermentation

8 laboratory tests

9 blending and fining

10 preservatives

11 filtration

12 bottling

13 winemakers

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PRODUCTION DEPARTMENT:

Winemaking Process:

Wine grapes:

Winemaking, or Vinification, is the production of wine, starting with

selection of the grapes or other produce and ending with bottling the finished

wine. Although most wine is made from grapes, it may also be made from other

fruit or non-toxic plant material. Mead is a wine that is made with honey being

the primary ingredient after water.

Winemaking can be divided into two general categories: still wine

production (without carbonation) and sparkling wine production (with

carbonation).

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The science of wine and winemaking is known as oenology (in American

English, enology).

Contents:

1 process

PROCESS:

Anatomy of a grape, showing the components extracted from each

pressing.

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After the harvest, the grapes are crushed and allowed to ferment. Red

wine is made from the must (pulp) of red or black grapes that undergo

fermentation together with the grape skins, while white wine is usually made by

fermenting juice pressed from white grapes, but can also be made from must

extracted from red grapes with minimal contact with the grapes' skins. Rosé

wines are made from red grapes where the juice is allowed to stay in contact

with the dark skins long enough to pick up a pinkish colour, but little of the

tannins contained in the skins.

During this primary fermentation, which often takes between one and two

weeks, yeast converts most of the sugars in the grape juice into ethanol

(alcohol) and carbon dioxide. After the primary fermentation, the liquid is

transferred to vessels for the secondary fermentation. Here, the remaining

sugars are slowly converted into alcohol and the wine becomes clear. Some

wines are then allowed to age in oak barrels before bottling, which add extra

aromas to the wine, while others are bottled directly. Still others may be aged in

stainless steel tanks or glass carboys. The time from harvest to drinking can

vary from a few months for Beaujolais nouveau wines to over twenty years for

top wines. However, only about 10% of all red and 5% of white wine will taste

better after five years than it will after just one year.[1] Depending on the quality

of grape and the target wine style, some of these steps may be combined or

omitted to achieve the particular goals of the winemaker. Many wines of

comparable quality are produced using similar but distinctly different

approaches to their production; quality is dictated by the attributes of the

starting material and not necessarily the steps taken during vilification..[2]

Variations on the above procedure exist. With sparkling wines such as

Champagne, an additional fermentation takes place inside the bottle, trapping

carbon dioxide and creating the characteristic bubbles. Sweet wines are made

by ensuring that some residual sugar remains after fermentation is completed.

This can be done by harvesting late (late harvest wine), freezing the grapes to

concentrate the sugar (ice wine), or adding a substance to kill the remaining

yeast before fermentation is completed; for example, high proof brandy is

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added when making port wine. In other cases the winemaker may choose to

hold back some of the sweet grape juice and add it to the wine after the

fermentation is done, a technique known as suss reserve.

The process produces wastewater, pumice, and lees that require

collection, treatment, and disposal or beneficial us

THE GRAPES

Harvested Cabernet Sauvignon grapes.

The quality of the grapes determines the quality of the wine more than

any other factor. Grape quality is affected by variety as well as weather during

the growing season, soil minerals and acidity, time of harvest, and pruning

method. The combination of these effects is often referred to as the grape's

terroir.

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Grapes are usually harvested from the vineyard in the autumn (fall), in

the northern hemisphere from early September until the beginning of

November, or the middle of February until the beginning of March in the

southern hemisphere.[2] In some cool areas in the southern hemisphere, for

example Tasmania, Australia, harvest extends into the month of May.

The most common species of wine grape is Vitis vinifera, which includes

nearly all varieties of European origin.

Harvesting and destemming

Harvest (wine)

Harvest is the picking of the grapes and in many ways the first step in

wine production. Grapes are either harvested mechanically or by hand. The

decision to harvest grapes is typically made by the winemaker and informed by

the level of sugar (called °Brix), acid (TA or Titratable Acidity as expressed by

tartaric acid equivalents) and pH of the grapes. Other considerations include

phonological ripeness, berry flavour, tannin development (seed colour and

taste). Overall disposition of the grapevine and weather forecasts are taken into

account.

The corkscrew shaped feed auger sits on top of a mechanical

crusher/destemmer. Grape clusters are then fed into the machine where they

are first crushed, then destemmed. Stems exit at the end while juice, skins,

seeds and some debris exit the bottom.

Mechanical harvesters are large tractors that straddle grapevine trellises

and, using firm plastic or rubber rods, strike the fruiting zone of the grapevine to

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dislodge the grapes from the rachis. Mechanical harvesters have the advantage

of being able to cover a large area of vineyard land in a relatively short period of

time, and with a minimum investment of manpower per harvested ton. A

disadvantage of mechanical harvesting is the indiscriminate inclusion of foreign

non-grape material in the product, especially leaf stems and leaves, but also,

depending on the trellis system and grapevine canopy management, may

include mouldy grapes, canes, metal debris, rocks and even small animals and

bird nests. Some winemakers remove leaves and loose debris from the

grapevine before mechanical harvesting to avoid such material being included

in the harvested fruit. In the United States mechanical harvesting is seldom

used for premium winemaking because of the indiscriminate picking and

increased oxidation of the grape juice. In other countries (such as Australia and

New Zealand), mechanical harvesting of premium wine grapes is more common

because of general labour shortages.

Central component of a mechanical de stemming. Paddles above the

small circular slots rotate to remove the larger chunks of stems. Grapes are

pulled off the stems and fall through the holes. Some small amount of stem

particles are usually desired to be kept with the grapes for tannin structure.

Manual harvesting is the hand-picking of grape clusters from the

grapevines. In the United States, grapes are traditionally picked into 30 pound

boxes, and in many cases these boxes are consolidated into ½ ton bins or two-

ton bins for transport to the winery. Manual harvesting has the advantage of

using knowledgeable labour to not only pick the ripe clusters but also to leave

behind the clusters that are not ripe or contain bunch rot or other defects. This

can be an effective first line of defence to prevent inferior quality fruit from

contaminating a lot or tank of wine.

Destemming is the process of separating stems from the grapes.

Depending on the winemaking procedure, this process may be undertaken

before crushing with the purpose of lowering the development of tannins and

vegetal flavours in the resulting wine. Single berry harvesting, like what is done

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with some German Trockenbeerenauslese, avoids this step altogether with the

grapes being individually selected.

CRUSHING AND PRIMARY FERMENTATION:

Fermentation of wine

Crushing is the process of gently squeezing the berries and breaking the

skins to start to liberate the contents of the berries. Destining is the process of

removing the grapes from the rachis (the stem which holds the grapes). In

traditional and smaller-scale wine making, the harvested grapes are sometimes

crushed by trampling them barefoot or by the use of inexpensive small scale

crushers. These can also distend at the same time. However, in larger wineries,

a mechanical crusher/destemmer is used. The decision about destining is

different for red and white wine making. Generally when making white wine the

fruit is only crushed, the stems are then placed in the press with the berries.

The presence of stems in the mix facilitates pressing by allowing juice to flow

past flattened skins. These accumulate at the edge of the press. For red

winemaking, stems of the grapes are usually removed before fermentation

since the stems have a relatively high tannin content; in addition to tannin they

can also give the wine a vegetal aroma (due to extraction of 2-methoxy-3-

isopropylpyrazine which has an aroma reminiscent of green bell peppers.) On

occasion, the winemaker may decide to leave them in if the grapes themselves

contain less tannin than desired. This is more acceptable if the stems have

'ripened' and started to turn brown. If increased skin extraction is desired, a

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winemaker might choose to crush the grapes after destemming. Removal of

stems first means no stem tannin can be extracted. In these cases the grapes

pass between two rollers which squeeze the grapes enough to separate the

skin and pulp, but not so much as to cause excessive shearing or tearing of the

skin tissues. In some cases, notably with "delicate" red varietals such as Pinot

noir or Syrah, all or part of the grapes might be left uncrushed (called "whole

berry") to encourage the retention of fruity aromas through partial carbonic

maceration.

CRUSHED GRAPES LEAVING THE CRUSHER.

Most red wines derive their colour from grape skins (the exception being

varieties or hybrids of non-viniferous vines which contain juice pigmented with

the dark Maldivian 3,5-diglucoside anthocyanin) and therefore contact between

the juice and skins is essential for colour extraction. Red wines are produced by

destemming and crushing the grapes into a tank and leaving the skins in

contact with the juice throughout the fermentation (maceration). It is possible to

produce white (colourless) wines from red grapes by the fastidious pressing of

uncrushed fruit. This minimizes contact between grape juice and skins (as in

the making of Blanc de noirs sparkling wine, which is derived from Pinot noir, a

red vinifera grape.)

Most white wines are processed without destemming or crushing and are

transferred from picking bins directly to the press. This is to avoid any extraction

of tannin from either the skins or grape seeds, as well as maintaining proper

juice flow through a matrix of grape clusters rather than loose berries. In some

circumstances winemakers choose to crush white grapes for a short period of

skin contact, usually for three to 24 hours. This serves to extract flavour and

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tannin from the skins (the tannin being extracted to encourage protein

precipitation without excessive Bentonite addition) as well as Potassium ions,

which participate in bitartrate precipitation (cream of tartar). It also results in an

increase in the pH of the juice which may be desirable for overly acidic grapes.

This was a practice more common in the 1970s than today, though still

practiced by some Sauvignon blank and Chardonnay producers in California.

In the case of rosé wines, the fruit is crushed and the dark skins are left

in contact with the juice just long enough to extract the colour that the

winemaker desires. The must is then pressed, and fermentation continues as if

the wine maker was making a white wine.

Yeast is normally already present on the grapes, often visible as a

powdery appearance of the grapes. The fermentation can be done with this

natural yeast, but since this can give unpredictable results depending on the

exact types of yeast that are present, cultured yeast is often added to the must.

One of the main problems with the use of wild ferments is the failure for the

fermentation to go to completion that is some sugar remains unfermented. This

can make the wine sweet when a dry wine is desired. Frequently wild ferments

lead to the production of unpleasant acetic acid (vinegar) production as a by

product.

A cap of grape skins forms on the surface of fermenting red wine.

During the primary fermentation, the yeast cells feed on the sugars in the

must and multiply, producing carbon dioxide gas and alcohol. The temperature

during the fermentation affects both the taste of the end product, as well as the

speed of the fermentation. For red wines, the temperature is typically 22 to 25

°C, and for white wines 15 to 18 °C.[2] For every gram of sugar that is converted,

about half a gram of alcohol is produced, so to achieve a 12% alcohol

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concentration, the must should contain about 24% sugars. The sugar

percentage of the must is calculated from the measured density, the must

weight, with the help of a saccharometer. If the sugar content of the grapes is

too low to obtain the desired alcohol percentage, sugar can be added

(capitalization). In commercial winemaking, capitalization is subject to local

regulations.

During or after the alcoholic fermentation, malolactic fermentation can

also take place, during which specific strains of bacteria convert malic acid into

the milder lactic acid. This fermentation is often initiated by inoculation with

desired bacteria.

Pressing

Ancient winepress in Migdal HaEmek, with the pressing area in the

centre and the collection vat off to the bottom left.

Pressing is the act of applying pressure to grapes or pomace in order to

separate juice or wine from grapes and grape skins. Pressing is not always a

necessary act in winemaking; if grapes are crushed there is a considerable

amount of juice immediately liberated (called free-run juice) that can be used for

vilification. Typically this free-run juice is of a higher quality than the press juice.

However, most wineries do use presses in order to increase their production

(gallons) per ton, as pressed juice can represent between 15%-30% of the total

juice volume from the grape.

Presses act by positioning the grape skins or whole grape clusters

between a rigid surface and a moveable surface and slowly decrease the

volume between the two surfaces. Modern presses are able to follow a pressing

program which dictates the duration and pressure at each press cycle, usually

ramping from 0 Bar to 2.0 Bar. Sometimes winemakers choose pressures at

which they wish to separate the streams of pressed juice, which is called

making "press cuts." As the pressure increases on the grape skins so too

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increase the amount of tannin extracted into the juice, often rendering the

pressed juice excessively tannic or harsh. Because of the location of grape

juice constituents in the berry (water and acid are found primarily in the

mesocarp or pulp, whereas tannins are found primarily in the pericarp, or skin,

and seeds), pressed juice or wine tends to be lower in acidity with a higher pH

than the free-run juice.

Before the advent of modern winemaking, most presses were basket

presses made of wood and operated manually. Basket presses are composed

of a cylinder of wooden slats on top of a fixed plate, with a moveable plate that

can be forced downward (usually by a central ratcheting threaded screw.) The

press operator would load the grapes or pomace into the wooden cylinder,

place the top plate in place and begin to lower it until juice began to flow from

the wooden slats. As the juice flow decreased to a minimum, the plate was

ratcheted down again until a similar flow rate was achieved. This process would

continue until the press operator determines that the quality of the pressed juice

or wine is below standard, or all liquids have been pressed from the grape

skins. Since the early 1990s, modern mechanical basket presses have seen

resurgence amongst higher-end producers seeking to replicate the gentle

pressing of the historical basket presses. Because basket presses have

relatively compact design, the press cake offers a longer relative pathway

through which the juice must travel before leaving the press. It is believed by

advocates of basket presses that this relatively long pathway through the grape

or pomace cake serves as a filter to solids that would otherwise negatively

impact the quality of the press juice.

With red wines, the must is pressed after the primary fermentation, which

separates the skins and other solid matter from the liquid. With white wine, the

liquid is separated from the must before fermentation. With rose, the skins may

be kept in contact for a shorter period to give colour to the wine, in that case

they must may be pressed as well. After a period in which the wine stands or

ages, the wine is separated from the dead yeast and any solids that remained

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(called its lees), and transferred to a new container where any additional

fermentation may take place.

Pig age:

Pig age is a French winemaking term for the traditional stomping of

grapes in open fermentation tanks. To make certain types of wine, grapes are

put through a crusher and then poured into open fermentation tanks. Once

fermentation begins, the grape skins are pushed to the surface by carbon

dioxide gases released in the fermentation process. This layer of skins and

other solids is known as the cap. As the skins are the source of the tannins, the

cap needs to be mixed through the liquid each day, or "punched," which

traditionally is done by stomping through the vat.

Cold and heat stabilization

Clarification and stabilization of wine:

Cold stabilization is a process used in winemaking to reduce tart rate

crystals (generally potassium bitartrate) in wine. These tart rate crystals look

like grains of clear sand, and are also known as "wine crystals" or "wine

diamonds". They may appear to be sediment in the wine, but they are not.

During the cold stabilizing process, the temperature of the wine, after

fermentation, is dropped to close to freezing for 1-2 weeks. This will cause the

crystals to separate from the wine and stick to the sides of the holding vessel.

When the wine is drained from the vessels, the tart rates are left behind.

During "heat stabilization", unstable proteins are removed by adsorption

onto betonies, preventing them from precipitating in the bottled wine.

Secondary fermentation and bulk aging

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Stainless steel fermentation vessels and new oak barrels at the Three

Choirs Vineyard, Gloucestershire, England

During the secondary fermentation and aging process, which takes three

(3) to six (6) months, the fermentation continues very slowly. The wine is kept

under an airlock to protect the wine from oxidation. Proteins from the grape are

broken down and the remaining yeast cells and other fine particles from the

grapes are allowed to settle. Potassium bitartrate will also precipitate, a process

which can be enhanced by cold stabilization to prevent the appearance of

(harmless) tart rate crystals after bottling. The result of these processes is that

the originally cloudy wine becomes clear. The wine can be racked during this

process to remove the lees.

The secondary fermentation usually takes place in either large stainless

steel vessels with a volume of several cubic meters of wine, or oak barrels,

depending on the goals of the winemakers. Unbaked wine is fermented in a

barrel made of stainless steel or other material having no influence in the final

taste of the wine. Depending on the desired taste, it could be fermented mainly

in stainless steel to be briefly put in oak, or have the complete fermentation

done in stainless steel. Oak could be added as chips used with a non-wooden

barrel instead of a fully wooden barrel. This process is mainly used in cheaper

wine.

Amateur winemakers often use glass carboys in the production their

wine; these vessels (sometimes called demijohns) have a capacity of 4.5 to 54

litres (1.2–14.3 US gallons). The kind of vessel used depends on the amount of

wine that is being made, the grapes being used, and the intentions of the

winemaker.

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MALOLACTIC FERMENTATION

Malolactic fermentation is carried out by bacteria which metabolize

malice acid and produce lactic acid and carbon dioxide. The resultant wine is

softer in taste and has greater complexity. The process is used in most red

wines and is discretionary for white wines.

Laboratory test:

Whether the wine is aging in tanks or barrels, tests are run periodically in

a laboratory to check the status of the wine. Common tests include °Brix, pH,

titratable acidity, residual sugar, free or available sulphur, total sulphur, volatile

acidity and percent alcohol. These tests are often performed throughout the

making of the wine as well as prior to bottling. In response to the results, a

winemaker can then decide if more sulphur needs to be added or other slight

adjustments before it is bottled.

°Brix is a measure of the soluble solids in the grape juice and represents

not only the sugars but also includes many other soluble substances such as

salts, acids and tannins, sometimes called Total Soluble Solids (TSS) However,

sugar is by far the compound in greatest quantity and so for all practical

purposes Brix is a measure of sugar level. The level of sugar in the grapes is

important not only because it will determine the final alcohol content of the wine,

but also because it is an indirect index of grape maturity. Brix (Box for short) is

measured in grams per hundred millilitres, so 20Bx means that 100ml of juice

contains 20gm of dissolved compounds. There are other common measures of

sugar content of grapes, Specific gravity, Wechsler (Germany) and Baume

(France). The French Baume (Be for short) has the benefit that one be gives

approximately one percent alcohol. Also one Baume is equal to 1.8 Brix that is

1.8 grams of sugar per one hundred millilitres. This helps with deciding how

much sugar to add if the juice is low in sugar; to achieve one percent alcohol

add 1.8 grams per 100 ml or 18 grams per litre. This is the process of

capitalization, legal in some countries illegal in others. However, perfectly

acceptable for the home winemaker. Generally, for the making of dry table

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wines a Box of between 20 and 25 is desirable, this is equivalent to be of 11 to

14.

A Brix test can be ran either in the lab or out in field for a quick reference

number to see what the sugar content is at. Brix is usually measured with a

refract meter whilst the other methods use a hydrometer. Generally,

hydrometers are a cheaper alternative. For more accurate use of sugar

measurement it should be remembered that all measurements are affected by

the temperature at which the reading is made, suppliers of equipment generally

will supply correction charts.

Volatile acidity test verifies if there is any steam distillable acids in the

wine. Mainly present is acetic acid but lactic, butyric, prop ionic and formic acids

can also be found. Usually the test checks for these acids in a cash still, but

there are new methods available such as HPLC, gas chromatography and even

enzymatic methods. The amount of volatile acidity found in sound grapes is

negligible. It is a by-product of microbial metabolism. It's important to remember

that acetic acid bacteria require oxygen to grow. Eliminating any air in wine

containers as well as a sulphur dioxide addition will limit their growth. Rejecting

mouldy grapes will also prevent possible problems associated with acetic acid

bacteria. Use of sulphur dioxide and inoculation with a low-V.A. producing strain

of Saccharomyces may deter acetic acid producing yeast. A relatively new

method for removal of volatile acidity from a wine is reverse osmosis. Blending

may also help—a wine with high V.A. can be filtered (to remove the microbe

responsible) and blended with a low V.A. wine, so that the acetic acid level is

below the sensory threshold.

Blending and fining:

Different batches of wine can be mixed before bottling in order to achieve

the desired taste. The winemaker can correct perceived inadequacies by mixing

wines from different grapes and batches that were produced under different

conditions. These adjustments can be as simple as adjusting acid or tannin

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levels, to as complex as blending different varieties or vintages to achieve a

consistent taste.

Fining agents are used during winemaking to remove tannins, reduce

astringency and remove microscopic particles that could cloud the wines. The

winemakers decide on which fining agents are used and these may vary from

product to product and even batch to batch (usually depending on the grapes of

that particular year)

Gelatine has been used in winemaking for centuries and is recognized

as a traditional method for wine fining, or clarifying. Generally no gelatine

remains in the wine because it reacts with the wine components, as it clarifies,

and forms a sediment which is removed by filtration prior to bottling.

Besides gelatine, other fining agents for wine are often derived from

animal and fish products, such as micronized potassium casseinate (casein is

milk protein), egg whites, egg albumin, bone char, bull's blood, isinglass

(Sturgeon bladder), PVPP (a dairy derivative protein), lysozyme, and skim milk

powder [3] .

Some aromatized wines contain honey or egg-yolk extract.[3]

Non-animal-based filtering agents are also often used, such as bentonite

(a volcanic clay-based filter), diatomaceous earth, cellulose pads, paper filters

and membrane filters (thin films of plastic polymer material having uniformly

sized holes).

Preservatives:

The most common preservative used in winemaking is sulphur dioxide.

Another useful preservative is potassium sorbet.

Sulfur dioxide has two primary actions, firstly it is an anti microbial agent

and secondly an anti oxidant. In the making of white wine it can be added prior

to fermentation and immediately after alcoholic fermentation is complete. If

added after alcoholic ferment it will have the effect of preventing or stopping

malolactic fermentation, bacterial spoilage and help protect against the

damaging effects of oxygen. Additions of up to 100 mg per litre (of sulphur

dioxide) can be added, but the available or free sulphur dioxide should be

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measured by the aspiration method and adjusted to 30 mg per litre. Available

sulphur dioxide should be maintained at this level until bottling. For rose wines

smaller additions should be made and the available level should be no more

than 30 mg per litre.

In the making of red wine sulphur dioxide may be used at high levels

(100 mg per litre) prior to ferment to assist stabilize colour otherwise it is used

at the end of malolactic ferment and performs the same functions as in white

wine. However, small additions (say 20 mg per litre) should be used to avoid

bleaching red pigments and the maintenance level should be about 20 mg per

litre. Furthermore, small additions (say 20 mg per litre) may be made to red

wine after alcoholic ferment and before malolactic ferment to overcome minor

oxidation and prevent the growth of acetic acid bacteria.

Without the use of sulphur dioxide, wines can readily suffer bacterial

spoilage no matter how hygienic the winemaking practice.

Potassium sorbet is effective for the control of fungal growth, including

yeast, especially for sweet wines in bottle. However, one potential hazard is the

metabolism of sorbet to geranial a potent and very unpleasant by-product. To

void this either the wine must be sterile bottled or contain enough sulphur

dioxide to inhibit the growth of bacteria. Sterile bottling includes the use of

filtration.

Filtration:

Filtration in winemaking is used to accomplish two objectives,

clarification and microbial stabilization. In clarification, large particles that affect

the visual appearance of the wine are removed. In microbial stabilization,

organisms that affect the stability of the wine are removed therefore reducing

the likelihood of re-fermentation or spoilage.

The process of clarification is concerned with the removal of particles;

those larger than 5–10 micrometers for coarse polishing, particles larger than

1–4 micrometers for clarifying or polishing. Microbial stabilization requires a

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filtration of at least 0.65 micrometers. However, filtration at this level may lighten

a wines colour and body. Microbial stabilization does not imply sterility. It simply

means that a significant amount of yeast and bacteria have been removed.

Bottling:

A final dose of sulphite is added to help preserve the wine and prevent

unwanted fermentation in the bottle. The wine bottles then are traditionally

sealed with a cork, although alternative wine closures such as synthetic corks

and screw caps, which are less subject to cork taint, are becoming increasingly

popular.

Winemakers:

A winemaker or vintner is a person engaged in making wine. They are

generally employed by wineries or wine companies, where their work includes:

Cooperating with viticulturists

Monitoring the maturity of grapes to ensure their quality and to determine

the correct time for harvest

Crushing and pressing grapes

Monitoring the settling of juice and the fermentation of grape material

Filtering the wine to remove remaining solids

Testing the quality of wine by tasting

Placing filtered wine in casks or tanks for storage and maturation

Preparing plans for bottling wine once it has matured

Making sure that quality is maintained when the wine is bottled

Today, these duties require an increasing amount of scientific

knowledge, since laboratory tests are gradually supplementing or replacing

traditional methods. Hence the vast majority of winemakers have, or are

studying for, a Bachelor of Science degree (or similar) majoring in oenology.

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Winemakers can also be referred to as oenologists as they study neology - the

science of wine.

FINANCE DEPARTMENT:

The financial planning is made in such manner. So as to adequately

meet the requirements of funds at any point of time. For the projected

production & sales, from various sources of fund to gather.

Working capital requirements are assessed based on the capacity

utilization & the production targets fixed for the year, the proposed capacity

utilization is starting from 50% to 75% in a year.

The promoters have availed the services of world famous technical

consultant & reputed process consultants for successful implementation of the

project. They also to installing the most modern versatile and sophisticated

plant and machinery & hence the proposed capacity will be easily achieved.

1) Capital Investment:-

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Total capital investment is proposed project it is worked at Rs.

9,00,00,000.

Working capital requirements :

Working capital estimated here that are for the first year production level .the cost of input of

raw-materials are worked out after detailed study of the consumption data. Percentage of

wastage and as per expert technical opinion of the technical and process consultants, while

estimating the cost total of input raw-materials provision has also made to cover costs of

marginal wastage of materials. The estimates are based on the current prevailing market

prices of raw-materials. Based on cost calculations arrived at as per methodology adopted

requirement of working capital for the first years projected working has been narrated in the

project report.

Capital cost of the project :-

The capital cost of the project is including margin money for operations was

estimated at 9 crore, estimates of margin money requirements estimated at

standard level. This could be acceptable to financial institutes /banks extending

finance towards working capital. The breakup of capital investments & margin

money for working capital is as fallows.

Sources of Funds :

The capital cost of the project Rs 9,00,00,000. It is proposed to be financial

by way of term loan from bank amounting to Rs. 2,00,00,000, the promoters

will contribute the balance amount of Rs. 7,00,00,000. It can be observed

that the financial plan of the unit has taken into account all the requirement

funds for capital investment & working capital requirements.

Profitability :

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The profitability in the operation of the unit is worked out on generally

accepted assumption in such type of industry. Considering the nature of

industry & the product manufactured this ratio is absolutely responsible.

Barrowings and repayments :-

The total barrowings of the unit for acquisition assets would be Rs.

2,00,00,000 which will be obtained from banks as a term loan.

Repayment against long term loans will commence from 4 years details of

repayment schedule & interest are given in the financial projections.

1. ESTIMATED COST OF THE PROJECT:

SR.NO. PARTICULARS TOTAL COST

1. Land 48,00,000

2. Cost of building 1,91,00,000

3. Plant &machinery 3,65,00,000

4. Furniture & Fixtures, } Lab equipments, 1, 41,00,000 Preliminary expenses

TOTAL 7, 45, 00,000

ADMINISTRATIVE MANAGEMENT COLLEGE Page 55

1. MEANS OF FINANCE :

SR.NO. PARTICULARS TOTAL COST

1. Promoters capital 7,00,00,000

2. Term loan from bank 2,00,00,000

TOTAL 9,00,00,000

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STATEMENT OF UTILIZATION & RATE OF PER BOTTLE

SR.NO. PARTICULARS AMT, RS

1. Capacity utilization 7,30,000 Litres.

(Per batch in litres)

White wine 4,38,000 Litres.

Red wine & Rose wine 2,92,000 Litres.

2. Selling price of white wine per bottle 400 Rs.

3. Selling price of Red wine per bottle 400 Rs.

4. Selling price of Rose wine per bottle 35 Rs.

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SWOT ANALYSIS OF THE MARKET:

STRENGTHS:

Nascent Stage, few players

Growth rate per annum 30%

Urban population increasing every year

Good Climate for growing wine grapes

WEAKNESSES:

Poor Quality of wine

Poor awareness on wine

Stringent and regressive government rules with different taxation across

various states.

High custom duties and levies for foreign players.

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OPPORTUNITIES:

Large domestic market with increasing disposable income

Population changing lifestyle accepting new trends

Export Potential to rest of the world.

Growing Tourism in India

THREATS:

New players entering market at fast pace

Foreign players entering with tie up with better quality

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FINDINGS & SUGGESTIONS/RECOMMENDATIONS:

To improve their production technology, so as to improve their production

capacity.

“The Elite vintage winery” as having a competitive advantage so as to try

to enter national markets to increase their area of reach.

To develop industrial relations, so as to make them better competitive

then the competitors.

It has to strive for the market leadership, by improvising their quality

production methods and costs.

Improve the organizational culture or work environment.

To provide training when and then needed, so as to improve the

performance of the employees.

To implement the new concepts of management, than following the older

concepts.

To follow the participative style of management.

To implement the performance appraisal methodologies, as to facilitate a

greater morale in workers by giving opportunity for their growth.

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CONCLUSION

A careful study of “ELITE VINTAGE WINERY INDIA PVT LTD. it is one

of the leading winery industry in North Karnataka, which produces three types

of wines and supplies all over Karnataka and other states.

All the departments play a vital role in every organization. A function of

all the departments provides materials to the factory without wheels of

machines cannot move.

The overall study that emerges in this firm has been maintained well and

efficient department in the management. It’s all sections are working efficiently.

The production capacity of wines has been improved. The overall performance

of all the departments is well systematic.

In the course of study. I have not only acquired theoretical knowledge

and also practical knowledge in the factory.

I conclude that all the department functions should have modern

techniques towards other departments.

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BIBLIOGRAPHY

INTERNET: www.indianwine.com

www.elitevintagewinery.com

AUTHOR BOOK EDITION PUBLISHERS

Philip Kotler Marketing Management Millennium Prentice Hall of India

Pvt Ltd 2002

K. Ashwatappa

K. Sridhar Bhatt

Production and

Operation Management

Millennium Himalaya Publishing

House

C.R.Kothari Research Methodology 2nd edition New Age International

Pvt Ltd 1999

ADMINISTRATIVE MANAGEMENT COLLEGE Page 62