A PROJECT REPORT ON

INDIAN WINE INDUSTRY

SUBMITTED TO

UNIVERSITY OF MUMBAI

BY

SHREYAS UMESH SHETTY

T. Y. B.M.S.

YEAR 2005-2006

THROUGH

TOLANI COLLEGE OF COMMERCE

ANDHERI (EAST), MUMBAI 400 093

CERTIFICATE

I, Dr. A. A. Rashid, hereby certify that Mr. Shreyas Shetty of Tolani College of Commerce, T.Y. B.M.S. (Semester V) has completed his project titled INDIAN WINE INDUSTRY in the academic year 2005-2006. The information submitted herein is true and original to the best of my knowledge.

Dr. A. A. Rashid (Project Guide)

Dr. Sheela Purohit (Principal)

DECLARATION

I, Shreyas Shetty, of Tolani College of Commerce, T.Y. B.M.S. (Semester V) hereby declare that I have completed my project titled INDIAN WINE INDUSTRY in the academic year 2005-2006. The information submitted herein is true and original to the best of my knowledge.

Place: MUMBAI Date:

Shreyas Shetty

ACKNOWLEDGEMENT
At the outset I take the privilege to convey my gratitude to those who have co-operated, supported, helped and suggested me to accomplish the project work. This project work bears imprint, of many persons who are either directly or indirectly involved in the completion of it.

I extend my thanks to Mr. Dinesh Chavla, Chateau Indage, for giving me an opportunity to do this project in the company.

I am also desirous of placing on record profound indebt ness to my guide Prof. Dr. A. A. Rashid Tolani College of Commerce, Andheri for the valuable advice, guidance, precious time and support that she offered.

OBJECTIVES
1. To make comparative analysis of Indian wine industry in context of past and present records.

2. To analyze wine industry globally and determine worlds major market.

3. To determine performance of Indian wine globally.

4. To make a comparative analysis of wine industry in Maharashtra.

5. To analyze market Baron Champagne Indage ltd.

Table of Contents
Sr. No. Topics SECTION 1
1. 2. 3. 4. Executive Summary Introduction A decade ago India today 1-2 36 7 10 11

Page No.

SECTION 2
1. 2. Wine globally Indian wine globally 12 22 23

SECTION 3
1. Indian wine industry 24 31

SECTION 4
1. Wine industry in Maharashtra An analysis 32 42

SECTION 5
1. 2. Case study Champagne Indage Ltd. Conclusion 43 53 54 55

Executive summary

With chicken tikka masala Britain's favourite dish India is offering a fresh challenge to the nation's palate: wine. Wine has been made in India for many thousands of years, some say for 5,000. Today India has 123,000 acres of vineyards, but only one per cent of them are used for wine.

Today there are eight thousand Indian restaurants in Britain representing 33 per cent of the dining market in spending power, which represents some Stg two milliard per annum. (Two billion in American usage).

Restaurants of every other nation offer wines from their own country. The only exception up to now has been India whose restaurants offered their excellent beer and wine from many other countries. Omar Khayam, a methode champagnoise wine has been on the British market for ten years. Now it is possible to find both a red and a white table wine in some shops and restaurants.

..1.

Some people say that wine does not go with curry. Well those of the British Raj used to drink a choata peg (coktail) or two before dinner, Madeira with the curry followed by claret then back on to the choata peg or Scottish wine. The very thought gives me a hangover.

Although Madeira does go with curry one gets legless unless one paces oneself with lots of water. Otherwise you cannot enjoy the food. Now we can all enjoy a few glasses of jolly good Indian wine without spoiling either our reputations or the delicious food.

With thousands of years experience of drinking wine with curry surely they, the Indians must know which is better beer or wine. Beer as we know it did not reach the sub Continent until the early to mid 19th century when brewers made I.P.A. Indian Pale Ale which was specially high in alcohol and well hopped in order to stand the voyage from Britain. Before this period rice beer was made in some areas.

Portuguese settlers improved the wine they found in the 16th century when they came to Goa. This helped to keep up interest and continuity in the wine industry which today is growing up into the 21st century from the quantum leap of its rebirth in 1985. The Portuguese also introduced Vindaloo to India. The sailors kept their meat in barrels of wine laced with garlic to which they added the spices they found in India. The word was originally Vin d'Ail.

Try drinking cool light red wine with meat curries, it is surprisingly refreshing and works well.

..2.

Introduction
"There is no reason why wine should not be drunk with the food served in India (nor with its often slightly paler imitations in "Indian" restaurants outside the subcontinent). The wine should ideally be quite fruity and assertive. A subtle old claret is most definitely not the thing; a California Zinfandel or Australian Shiraz, or even a well-made sparkling wine, would be much more so." - Jancis Robinson, (the definitive voice on wine).

Wine has been made in India for as many as 5,000 years. It was the early European travellers to the courts of the Mughal emperors Akbar, Jehangir and Shah Jehan in the sixteenth and seventeenth centuries who reported tasting wines from the royal vineyards. Red wines were made from the arkesham grape and white wine from arkawati and bhokry grapes.

India has now 123,000 acres of vineyards, but only one per cent of this acreage is used for wine. However, that does not mean the wine market in the country isn't maturing. Today the overall sales are around 400,000 cases a year. Table wines account for 85 percent of the market and expensive varieties of vintage wines account for the remaining 15 per cent.

The flip side of the industry is that of the 400,000 cases sold every year, only 30,000 cases of sparkling wine and champagne are consumed in India. In contrast the figures of other drinks are: 37 million cases of whisky, 11 million cases of brandy and nine million cases of rum. Industry officials believe that the market will grow rapidly once the government drops import duties on bulk (currently at 108 per cent) and on bottled wines (currently 264-420 per cent).

One of the other reasons why wine drinking has not caught on is that quality wines are priced relatively high. Since the volumes are low, production costs are high, as are taxes.

..3.

Thus the real challenge for winemakers in India is to develop a domestic market, and that is where the problem arises. First, people believe wine and curry do not go well. "It is a myth," says Thomas Abraham, F & B Manager of Delhi's Hyatt Regency hotel. The truth is most Indians prefer beer, whiskey or rum over wine and champagne. That's why the per capita consumption of wine in India is very low."

In exports, says Aman Dhal, one of India's leading wine importers and distributors, Indian winemakers face a peculiar problem. Traditionally wine lovers around the world have some kind of a mental block against Indian wines. They are just not comfortable with the Made in India tag."

However, Oz Clarke, one of the presenters of the BBC's Food and Drink programme, refutes that. Western wine drinkers are some of the most imaginative aficionados in the world. I think when they see Made in India, they won't say: "What a weird idea." They'll say: "Fantastic! I haven't tried it. Give me some." In fact, one of Chateau Indage's most popular wine, Omar Khayam, is in the British market for a decade now!

A spokesman of spirit major McDowell that also distributes imported wine in the Indian market, says that wine imports --both bulk and bottled --have gathered momentum in the last three years. Growth rates, he claims, have touched 25 percent per annum in the last few years. Volumes are driven mainly by Indian wines that are priced below Rs 150 per bottle," he adds

McDowell's, in fact, has an agreement with Concha Y Toro, the largest producer of wine in Chile for importing wine. The company is represented in the Indian market by two premium brands, Bosca Reisling and Red & Rose.

Though Shaw Wallace's Golconda has a 25 per cent market share, the leader is Chateau Indage, a diversified Indian public company with interests in viticulture

..4.

and wine distribution. The company manufactures 12 types of wine and owns vineyards spread over 600 acres south-west of Mumbai.

Pioneer of French-style wines in India, CI Limited produces a variety of exquisite still and sparkling wines. In the Indian market Indage holds 75 % share of the premium still wine category and virtual monopoly in Sparkling wines. Chateau Indage, pioneered by Sham Chougule was established in 1984, with the technical collaboration of Champagne's Piper Heidsieck. The ultra-modern winery in Narayangaon, Maha-- ra-shtra, produces a wide range of high-quality wines under the watchful eye of Californian winemaker John Locke. Chateau Indage's Riviera label includes a fruity, well-balanced white blend of chardonnay and ugni blanc and a soft fresh red made from pinot noir. The Chantilly label wines--a white (chardonnay) and a red (cabernet sauvignon)--are aged in French oak and show their varietal characteristics. Omar Khayyam is a top-quality chardonnay-based sparkling wine, made by the methode traditionelle, that compares favorably with champagne.

Grover Vineyards, in Dodballapur, 40 km north of Bangalore at the foot of the Nandi hills, on the other hand, uses French grapes Vitis Vinifera in its vineyards in Bangalore. It exports wine worth $435,000 every year. "The Grover range produced from high-altitude vineyards north of Bangalore, with help from the ubiquitous Michel Rolland of Pomerol, is extremely respectable. The reds, particularly the Reserve red, are a distinct notch above the slightly dull Clairettebased white." Fifteen years ago, the Grovers took on the task of reviving wine drinking in India. The company, together with Mr. George Vesselle accepted the immense challenge of growing, for the first time, French varieties of grapes, suitable for wine production in India. Grover Vineyards is jointly owned by Kanwal Grover and Veuve Cliquot. Kanwal Grover is advised by two top French winemakers, Michel Rolland and Georges Vesselle. The vineyards are planted at 2,000 feet above sea level and produce two crops a year. Still white and red wines from

..5.

Bangalore purple, cabernet, shiraz and Thompson seedless grapes are made under the supervision of winemaker Bruno Yvon. The white is medium-dry and fairly bland; the red is cabernet-style with good depth of fruit.

For those who curl up their nose at Indian wines, the advise would be not to write off the local offerings. The consumption is increasing though ever too small. Sham Chougule, the chairman of Chateau Indage puts it succinctly, Its about half a teaspoon per head. The day it becomes one litre, the market will be one billion litres."

..6.

A decade ago
Wine has a history in India, but it has never taken centre stage as it did at times in Europe. Wine is thoroughly wrapped up within western culture from its very beginnings (to take a minor example, Homers epics the first great literature of western civilization repeatedly employ the phrase, over the wine-dark sea). But in India, wine tended to be brought into the culture by the various waves of conquerors and sojourners. I do not believe, as some try to argue, that soma, the ancient gods intoxicant, had anything to do with wine. One of the names for wine in ancient India was Drakshasava. Artefacts from Harappan civilisation indicate indigenous familiarity with wine. Moving to the Vedic period, it is claimed that wine was known as Somarasa, was associated with Indra and poured as a libation and drunk at religious festivals. There were certainly some references and uses of wine before Alexander brought vines with him to northern India.

Example
Pre-Alexander Shaivite cult practices in this sense analogous to Greek Bacchic rites involved the use of wine as an intoxicant. Kautilyas Arthashastra, which dates from somewhere between 321-150BC (that is, during the Mauryan Empire, which was in the making during Alexanders conquests in north-western India), discusses alcoholic beverages made from fruit, though it is not clear that wine proper is meant. Interestingly, the Mauryas strictly regulated the production and distribution of alcoholic beverages, and in this respect, the current outrageously over-regulated Indian laws have a native predecessor. The Persians had a famous wine, Shiraz, which was often sent to the Moguls, and later to the British.

..7.

From the moment the British set up the Surat factory (1612), wine began becoming more and more familiar throughout India. Indeed, the breakfast given all the employees at the Surat factory consisted of little else but burnt wine, that is, wine that was scalded by dropping a red hot brick of gold into it. Wine was always expensive in India, so today is no different from any earlier time. Due to the cost of shipping wine to India, the British planted vineyards, in Surat, and also in Kashmir. Kashmir happens to fall right into the longitude (30 50) where the worlds best wines originate, including California and Europe in the Northern Hemisphere, and Chile, South Africa and Australia in the Southern Hemisphere. If the Kashmir problem is ever solved, the wine problem in India will also be solved.

Some of the domestics were drinkable, in spite of the fact that viticulture was hardly known in India. As the production was really picking up, a Phylloxera epidemic destroyed all the vines in India, just as it had done in Europe as well. Whereas Europe replanted with resistant (American) rootstocks grafted on to superior European vines India did not. Thus, from the British landing in Surat in 1608 to today, the vast majority of the wine drunk in India has been imported.

And the wine the British drank was not just any import, but often some of the best. They developed the art of pairing Indian food and wine, although since the taste of wine has changed so much in the last century, it is difficult to agree now with their judgments.

Example
Bordeaux Lafite or La Rose was matched with Bombay Duck. Today this pairing would be contraindicated. In fact, because of the problems with water purity, the Brits drank an enormous amount of wine while in India far more than they ever would have drunk when at home. The record book of a certain Mr. Francis, dated 1774, shows that in a ..8.

single month his household consumed 75 bottles of Madeira, 99 bottles of claret (red Bordeaux), 74 bottles of porter (a stout beer), 16 bottles of rum, 3 bottles of brandy and 1 bottle of cherry brandy!

To give a brief summary of changing drinking patterns during the British Raj, one could basically say that from the 1600s to about 1820, wine was pre-eminently the drink of choice. Those who could not afford it had arrack and other indigenous spirits, but anyone of means had steady supplies of both domestic and imported wines ready at table. When supply of imported wines was interrupted and/or domestic production was not of decent enough quality to drink unadulterated, punch was the substitute. Indeed, punch became the rage in both India and abroad during the 17th century. The Portuguese at Goa were crazy about it, even establishing several punch houses in Goa, and the idea spread to Calcutta and Madras. This went out of fashion in India from around the 1750s, though the fad lasted another half-century in Britain itself.

The word punch, of course, derives from the Sanskrit-based Hindi word for five, panch: punch was an Indian concoction over 2000 years old consisting of five ingredients: arrack (or another spirit like toddy, etc.), sugar, limejuice, water, and spices (including clove, and other aromatics like rose water). The Europeans in India developed dozens of popular punches, one of which is still common today in British taverns, called East India Punch, a mixture of brandy, port, sugar, lime juice, and spices; the more festive, fizzy punch includes sparkling wine.

After the end of the punch fad by the 1750s, Persian shiraz was regularly supplied to India. This ended with political conflicts in Persia in the 18th century, and Persian shiraz was substituted by Madeira the only wine thought to improve, rather than deteriorate, in the torrid Indian climate.

..9.

With the invention of Indian pale ale, beer began to overtake wine consumption in India in the 1820s, and then from around 1840-1870, brandy began to be recognised as the drink of choice. At the same time, with soda becoming widely accessible, whisky became a strong contender. Additionally, around the 1860s, when the Schweppes Company began marketing its anti-malaria tonic, gin began to gain currency as the best means for making tonic palatable.

Finally, in the 1920s to 1930s, cocktails became a fad worldwide, and even today in India, cocktails, whisky soda, rum and brandy are far, far more widely consumed than wine.

..10.

India today
Nevertheless, wine consumption in India is currently increasing at a rate of over 20% per year and certain domestic wineries yearly sell out their entire stock. The best cannot keep pace with demand. Indeed, it is expected that wine consumption in India will grow tenfold to reach an average consumption of about 60 million bottles in the next 7-10 years. 20 %

Vineyards are multiplying in Maharashtra, as farmers see ever more advantages to switching to wine grape growing. Nashik is the current centre of the boom. Enterprising table grape farmers have shifted to growing wine grape varieties, with generous subsidies from the state government encouraging the move. The government of Maharashtra has issued over 70 licenses in the last couple of years for setting up new wineries.

Further, the states revenue department has introduced a zero excise duty regime with 4% sales tax on locally produced wines. This is the most progressive action yet taken on the Indian wine scene, and hopefully, other states will follow Maharashtra lead.

..11.

Wine globally

Introduction
The dynamics of the global wine industry are better understood through a brief history of wine as well as an overview of the wine making process. Some countries have longer historical and cultural ties with wine then others and that can affect the quality and perception of the product in the eyes of the consumer. Also, the conditions in which the wine grapes are raised and the processes used to make the wine can create a superior wine and therefore a competitive advantage. Wine has been a part of Western history since the Neolithic Period (8,500-4,000 B.C.), when cultures first started to develop permanent communities, and stopped being nomadic hunter-gatherers (U. Penn, 2000). One of the earliest written records of the consumption of wine is recorded in the Bible and the impact of wine on Mediterranean cultures became more pronounced over the years as the geopolitical situation stabilized in the region under the Roman Empire. Roman Imperialism helped to spread the production of wine across most of the countries in the Empire, which included most of North Africa and Southern

..12.

Europe (Britannica, 2000). During that same era, wine became ingrained in the Christian faith and is still used in Christian mass today. The close tie between wine and the Christian faith aided to the spread of wine production and wine consumption across Europe in the ages after the fall of the Roman Empire and eventually throughout the world with the European Imperialism of the 15th - 19th centuries. The wine producing and consuming countries listed in both Tables 1 and 2 are dominated by Western countries or ex-colonies, with most of them being historically Catholic.

(In millions of gallons) Country Italy France Spain US Argentina Germany South Africa Australia Chile Romania Hungary Yugoslavia Rest of World World Total 1996 1,551 1,506 818 498 334 228 230 177 100 202 110 92 1,296 7,142 1997 1,343 1,414 876 580 356 224 232 162 120 176 118 106 1,195 6,902 1998 1,430 1,390 800 539 334 286 215 195 144 132 110 106 1,150 6,831

Table 1 World Wine Production

..13.

Table 2
% Share of the World Wine Production, Wine Consumption, Share of World Wine Market and Share of Export Market 2004
% Share % Share % Share of % Share of World Export of of Export Market Rank Production Consumption World Market Market 21.0% 20.4% 11.7% 7.9% 4.9% 4.2% 2.9% 2.1% 1.4% 23.5% 100.0% 14.3% 15.9% 6.7% 9.3% 6.1% 8.5% 1.6% 1.0% 2.2% 34.4% 100.0% 20.8% 20.3% 10.6% 8.4% 6.4% 4.1% 2.3% 2.0% 2.5% 22.6% 100.0% 25.3% 25.1% 15.6% 4.2% 1.7% 3.6% 3.0% 3.5% 3.4% 14.6% 100.0% 1 2 3 4 10 5 8 6 7

Country*

Italy France Spain United States Argentina Germany Australia Chile Portugal Others Total

There has never been a universally accepted system for naming styles of wine. Currently there are two prominent systems for naming wine Varietal Appellation. Appellation is a French term used to describe the region or specific area in which a wine is produced. In France when the Appellation naming convention was created, it was accepted that certain geographic locations, due to "terroir" the land where the grapes are grown, were better prepared to produce a specific type of grape, and therefore a specific style of wine.

..14.

Example
That is why Champagne (wine with a degree of carbonation) comes from the Champagne region in France, east of Paris.

Some Appellations that have been created around the world include: 1. Bourdeaux (FR) 2. Burgundy (FR) 3. Chablis (FR) 4. Champagne (FR) 5. Tuscany (ITY) 6. Maipo (CHL) 7. Mendoza (ARG) 8. New South Wales (AUS) 9. Napa Valley (USA) 10. Sonoma County (USA).

Varietal is a descriptive naming convention based on the type of grape used to produce a wine. Varietal is predominately used as U.S. industry marketing tool to segment the market and is not specific to a geographic location. Some common Varietals today are; White Zinfandel, Riesling, Chardonnay, Burgundy, Shiraz, Petite Shiraz, Merlot, Pino-Noir, Zinfandel and Cabernet Sauvignon.

Terroir is a determining factor in the quality of the wine. It is not who makes it, or how they make it, but the quality of the grape that is used. It is the environmental factors that determine the flavors and sugar content in the grape. These factors are based on the temperature in the region, the amount of light that the grape vines are exposed to, the amount of rain that the area receives annually and the characteristics of the soil. A vineyard that has all of these natural benefits still must have considerable agricultural work done to keep the vineyards healthy and free of insects and/or molds that damage the vines ability to produce quality grapes. The combinations of attributes that are needed to create a high quality

..15.

grape are not very common throughout the world. The amount of good "terroir" is limited, and therefore the ability to produce fine wines is limited

..16.

Wine producing countries

In the global wine industry there are two broad categories for the classification of wine producing countries; 1. New World Producers 2. Old World Producers. The larger New World Producers include the USA, Australia, Chile and Argentina. The largest of the Old World producers are France and Italy. The New World (except the USA) and the Old World Producers industries are described in the following section.

Australia
Grape vines in Australia were first introduced in 1788 by English immigrants. The wine "industry" was born in the 1860's when European immigrants added the skilled workforce necessary to develop the commercial infrastructure. Since Australia has a very limited domestic market, the wineries realized that if the industry was to continue to grow it would have to do so in the international market. At the same time that the Australian wine industry was starting to show strong growth, the government was considering legislation that would severely tax wine in an attempt to gain revenue. To protect the industry, the local wineries joined together with government officials to develop a plan that would keep the government from doing this, and the result was the formulation of "Strategy 2025"

Strategy 2025" is a business strategy that outlines how Australian wines will expand domestically and internationally. Their vision is that by the year 2025 the Australian wine industry will achieve $4.5 billion in annual sales by being the world's most influential and profitable supplier of branded wines and by pioneering wine as a universal first choice lifestyle beverage. They were even

..17.

bold enough to name the specific markets that they would target. The top four markets targeted were the U.K., U.S., Germany and Japan.

Chile
The first vines were introduced to Chile in the 16th century by a Spanish priest. Over the years the cultivation slowly grew until the late 19th century when wine began to be produced on a large scale. Due to political and economic instability, the wine industry was not able to develop and take on a global perspective until 1979 when Chile began to focus on the exporting of natural resources to strengthen its economy.

The high Andean climate is very good for the production of high quality red wines. Chilean wines are higher in quality then Argentina. Chile is the 9th largest producer of wine in the world with output of 100 million gallons in 1996 and 210 million gallons 2004. Despite being only the 9th largest producer, Chile had 3.5% of the total export market and was ranked 6th in the world for 2004.

France
France has been a long time world leader in the production of wine due to historical and cultural factors. In terms of volume, France was the number 2 producer of wine in the world with output of 1,506 million gallons in 1996 and 1,390 million gallons in 2004. The French developed the Vins d'appellation d'origine controlee (AOC) system centuries ago to help ensure that the quality of wine produced stays high. The AOC regulates the area of the production, the method used to produce and store the wine as well as the minimum alcohol content of the wine. There are many regions in which quality grapes can be grown in France, and the dominant position that France has in the export market reflects this. Some of the appellations that are better known in France are Bordeaux, Burgundy, Champagne and Rhone.

..18.

Italy
Italy, like France, also has a very old and established wine industry that relies on the appellation method to control the quality of their wines. Italy was the largest producer of wine in the world with output of 1,551 million gallons in 1996 and 1,430 million gallons in 2004. The two main organizations responsible for the control of the quality in Italian wine are the Denominazione di Origine Controllata and the Denominazione di Origine Controllata e Garantita. The second appellation control system was developed in recent years to help raise the quality of the wines produced.

..19.

Major world markets

Although several of the major wines producing countries are also major markets, there are many countries and regions that do not have the capability to produce quality wines in large volumes, but have high demand for the product. This section will provide an overview of wine markets around the world and will reference the per capita consumption rates of select countries listed in Table 3.

Table 3 Per Capita Consumption of Wine in Selected Countries 2000 2004 (In liters) Rank
1 2 3 4 5 6 7 8 9 10 33

Country
Luxembourg France Italy Slovenia Croatia Portugal Switzerland Argentina Spain Uruguay United States

Population* 2002
388,000 58,109,160 58,261,971 2,051,522 4,547,000 10,562,388 7,084,984 34,292,742 39,404,348 3,222,716 267,636,000 62.89 59.88 59.55 54.79 37.61 54.91 41.36 38.97 36.69 29.88 7.82

2003
69.07 61.09 52.96 51.74 47.26 49.45 40.93 39.05 37.02 33.57 7.69

2004
70.36 61.09 54.92 48.74 47.66 47.34 40.93 39.52 38.07 35.13 7.88

In Australia social behavior has driven the growth of the domestic market. These trends include a shift toward a Mediterranean style diet, the rise in the awareness of the health benefits of wine, recreational activities and general entertainment As these trends have been increasing, so has Australia's per capita consumption. They were ranked #18 in the world for consumption According to Strategy 2025,

..20.

this low market penetration by imported wine is attributed to the high quality and low price of the domestic brands, not because of government intervention to protect the market. In 1996 when Strategy 2025 was written, 6% of the brands sold in Australia accounted for more then 75% of sales.

Argentina was ranked #8 for per capita consumption in the world. Consumption in Argentina is showing a very slow growth trend, with 39.52 liters per person being consumed in 2004.

France and Italy were the number 2 and 3 countries in the world for per capita consumption Both countries have a long history of wine production and consumption, yet despite this the consumption rate in France is relatively stagnant while Italy is showing a decrease. Italy, unlike France, has a very small market for imported wines.

There are other countries and regions around the world that do not have the capability to produce large quantities of high quality wine, yet have markets that must be sustained through importing. These markets include the United Kingdom, Canada, Japan and Asia. The United Kingdom's wine market is considered to be the "crucible" for the global wine market The U.K. has a very small domestic wine industry and also has good relationships with many of the wine producing countries in the world. That coupled with the long history of wine consumption the British have due to their historical association with the French and the Germans results in an open and competitive market. The British import market was second only to the German market in 1998, and the U.K. was ranked 23 for per capita consumption in the same year with a trend of increasing consumption. The situation is very similar in Canada, except that there are more governmental constraints to competition in Canada. In 1998 Canada was ranked 30 in the world for per capita consumption with an increasing trend.

..21.

Although Japan has seen a steady increase in the size of its imported wine market, they do not rank in the top 33 countries in the world for per capita consumption. In fact, no Asia country has a high per capita consumption when compared to Western countries. This has to do with the lack of traditional and cultural trends that drive the consumption patterns in more established wine drinking countries.

Asia does present a great opportunity for wine producers around the world because it is a very large market that has yet to be tapped. China alone has 1.4 billion potential consumers.

..22.

Indian wine globally

Introduction
The Indian wine industry may still be in its infancy, but it is hoping to challenge the supremacy of winemaking 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 of the world.

Oz Clarke, one of the presenters of the BBC's Food and Drink programme, says that, western wine drinkers are some of the most imaginative wine drinkers in the world. He says, England in particular, but also Scotland, Ireland, Sweden, Norway - those kind of countries are desperate for new experiences,"

Challenges
The other challenge for winemakers in India is to develop a domestic market as most Indians prefer beer, whiskey, and rum and sometimes even home-brewed spirits over champagne and wine.

..23.

Indian Wine Industry

Introduction
Wine has been made in India for many thousands of years, some say for 5,000. Today India has 123,000 acres of vineyards, but only one per cent of them are used for wine

The Indian wine industry, estimated at Rs 2.60 billion (US$59.3 million), is all set to grow ten-fold in a decade as wine culture is fast catching up with the emergence of exclusive wine clubs in various cities. 2.60 mn

The consumption of wine in India recorded a 14 per cent growth in 2003-2004 to reach 4,90,000 litre cases as against 4,30,000 litre cases in the previous year, the study conducted by EXIM Bank says.

Mumbai accounts for approximately 40 per cent of India's wine sales followed by Delhi (15 per cent), Goa (8 per cent) and Bangalore (6 per cent). It is expected that wine consumption in India will grow ten-fold to reach about five million cases in ten years; the study said adding, wine clubs have come up in Delhi, Bangalore, Chandigarh and Hyderabad, indicating changing trends and growth of the industry.

..24.

Market analysis
Alcohol consumption
The share of wine in the total alcoholic beverages market in India is a mere 0.14%, with total consumption of 1.36mn liters per annum. Consumption of beer is the highest with a 52.6% market share followed by distilled spirits at 47.3%. Low awareness and high pricing compared to the other two categories makes wine a low market share category.

Alcohol consumption in India (% share)

..25.

Wine consumption in India

From a total consumption of 1.36mn liters in FY00, the Indian wine industry has grown to 2mn liters in FY04. The percentage of imported wine to total wine consumption in the country has gradually decreased from 56% in FY00 to 39% in FY04. Most of the importers of wine are five star hotels, embassies and other such institutions. The imported wine segment is fragmented with over 1,000 labels from various manufacturers on offer. French wine is the most imported wine in the country.

Wine consumption in India (mn liters)

100% 80% 60% 40% 20% 0% FY00 FY01 Domestic(%) FY02 Imported(%) FY03 44 51 56 61 56 49 44 39

..26.

Basic wines and their consumption

As per classification based on the type of wine consumed, red wine has the largest market share (45% of total wine consumed). White wine stands second with a market share of 40%, followed by sparkling wine (13%) and rose wine (2%).

Classification based on type of wine

13% 2%

45%

40%

Red Wine

White Wine

Sparkling Wine

Rose Wine

..27.

Geographical classification
Consumption of wine is unevenly spread across the country. Although wine is sold in around 20 cities in India, 4 cities namely Mumbai, Delhi, Goa and Bangalore contribute to almost 70% of the total wine consumption. Lack of availability has limited the expansion to other parts of the country.

Geographical classification
8% 15% 6% 31%

40%

Mumbai

Delhi

Goa

Banglore

Rest of India

..28.

Duty structure in wine industry

Levy of excise duty on wines in India is the domain of the State government. The excise rates thus vary across the country as each State decides the rates after considering its revenue targets and other factors. While the excise duty on wines has been exempted in some States like Maharashtra, it is very high in some others.

The customs duty on imported wines ranges from 150% to 175%. High customs duty prevents cheap imports and promotes development of the domestic industry. The duty structure on imported wines in the last three years is as follows:

..29.

Some facts
1. The wine industry has witnessed a CAGR of over 25% over the last 3 years in the premium wine segment mainly fuelled by the strong growth in the domestic wine consumption. 2. The industry is not very capital intensive, as it requires around Rs.10-15 million to setup a Wine plant with a capacity of 100,000 liters. 3. The key raw materials such as grapes, bottles, and corks account for approximately 20% of the total costs and are higher than the international norms. 4. The industry has low entry barriers because of its low capital-intensive nature however the industry is under pressure for profits due to high marketing costs and low volumes. With demand increasing at a steady pace, the industry is expected to go through a consolidation phase. 5. The industry is dominated by three players viz Indage, Sula wines and Grover wines and enjoys more than 90% of the total market share. 6. The fortunes of the industry are linked to the trend in the changing drinking habits of Indians, higher disposable incomes, growth in the foreign tourists, and government regulations and policies. 7. The Indian wineries have planned expansion plans to meet the increasing demand. 8. There is a strong growth in the imported wine market with Indian importers importing hundreds of brands from countries like Australia, US to Bulgaria. Some of the well-known wine producers are also present in India like Moet and Hennessey, E&J Gallo and HWWG.

..30.

Conclusion
The growing Indian urban population with rising disposable incomes is the key growth driver for the wine industry. Consumption of wines will also get a boost if the benefit of duty exemptions in Maharashtra is passed on to consumers through price reductions. Positive government outlook towards the sector will go a long way in developing the industry. Going ahead, the industry is likely to witness entry of many local and foreign players. This will help widen the market further.

..31.

Wine Industry in Maharashtra - An Analysis

Two of the country's biggest grape-producing districts, Nasik and Sangli, are in Maharashtra; 20,000 hectares of vineyards here grow more than one lac tons of grapes a year. As much as 99 per cent of the grapes is used for making honey, crushes and jams, or consumed fresh or dry. The rest is used for making wine. Thus the opportunity in this sector is immense and given proper help and guidance this sector can be great help of employment as well as earning.

Problems faced by the wine industry

1. One of the other reasons why wine drinking has not caught on is that quality wines are priced relatively high. Since the volumes are low, production costs are high, as are taxes.

2. The domestic excise policy, with an `insane' 300 per cent duty slab on each bottle is the huge prohibiting factor: the growing breed of wine importers, as well as Indian makers of wine, are waiting for a rationalization in the policy, which will allow freer, cheaper imports, as well as an opportunity for Indian wines to be available easily all over the country.

3. The wine industry is both competitive and challenging. It exhibits the characteristics of the consumer packaged goods (CPG) industry aggressive brand building supported by large advertising and event budgets, combined with high manufacturing costs. But a key differentiation in the wine industry is the relatively higher packaging costs glass bottles, labels, foils etc. So a key challenge for industry is maintaining lower costs

..32.

to control the cost of expensive packaging inputs. Another challenge for the company was to manage the distribution of the finished goods. 4. Scarcity of water could be accounted for as the chief cause responsible for the wine industry as the grape cultivation suffers from unseasonal rains.

5. Ministry of Finance has imposed additional duty on imported liquor with effect from 1.4. 2001 as countervailing duty in lieu of excise duties paid by domestic liquor products in different States. These were imposed at the rates of 75%, 100% and 150% on ad valorem basis for three different categories of CIF value. Considering the already high customs duty on such liquor, the overall duties on import of liquor have gone up to 463% to 706% on different types of products. Such high duties are totally counter productive and were not justified for providing protection to local liquor companies.

6. State Government has also imposed very high Sales Tax on consumption of imported liquor in restaurants and bars.

Measures taken by the government for reviving the industry

The Maharashtra government has decided to pare the license fee hike for five liquor categories to 150-200 per cent. In October 2001, the government had announced a 200-400 per cent hike in the license fees for various categories.

A government media release said while the license fee hike had been announced in 15 categories of liquor, a rethink in the wake of protests by the liquor industry has resulted in the new decision, restricting the hike to certain categories. The five categories of liquor manufacturing and sale for which the license fee hike would be restricted to 150-200 per cent are the wholesale segment of foreign

..33.

liquor, retail segment of foreign sale, permit rooms and wholesale and retail sale of country-made liquor.

The release said the decision was in response to repeated pleas by wholesalers' and retailers' associations that an unrealistic license fee hike would run these segments of the industry out of business.

The government also decided to levy an additional sales tax on country-made liquor manufacturing units at Rs 18 per box. This will result in additional revenue of Rs 28 crores annually for the state and is intended to offset the notional loss that would arise out of the decision to restrict the license fee hike

Maharashtra has also announced a grape processing industrial policy incorporating incentives like excise duty reduction on wines, sales tax concessions, simplified processes and procedures, fixed license fees for a 10 year period and creation of a wine institute and a grape board for quality control, certification and export promotion.

The Finance Minister has reduced the customs duty on import of liquor from 210% to 182%. Government had also given a commitment to WTO that this will be reduced to 150% by 2004. They have therefore started the gradual reduction. Last year Government had introduced CVD or additional duty on ad valorem basis in 3 slabs. This duty was 150% on imported liquor of CIF value of under US$20 per case, 100% on imported liquor with CIF value between US$20 to US$40 and 75% on imported liquor with CIF value of over US$40 per case. The combined effect of the basic duty, SAD and CVD took the total duty on imported liquor to 706%. Finance Minister has now reduced the CVD and made it into 2 slabs. Imported liquor with CIF value under US$25 per case will attract additional duty of 75%.

..34.

All other liquor with CIF value over US$25 per case will have CVD of 50%. Thus there is a substantial reduction on CVD and the industry is happy with this. The peak total duty will now be as follows:

Note:
CIF Means that the seller delivers when the goods pass the ships rail in port of shipment.

CVD - The duty to be paid along with basic customs duty and special additional duty for the imported items.

..35.

Various taxes and duties applicable to the wine industry

1. Excise Duty 2. Additional Duty 3. Distillery/Brewery License Fee 4. Bottling fee 5. Litterage fee 6. Assessment Fee 7. Franchise Fee 8. Permit Fee 9. Gallon age Fee 10. Raw Material Excise 11. Availability Fee 12. Brand/Label Fee 13. Permit Fee 14. Transportation Fee 15. Import Pass Fee 16. Export Pass Fee 17. Educational/Welfare Cess 18. Vend Fee 19. Sales Tax/Surcharge 20. License Fee 21. Toll Tax

..36.

LIQUOR Bottled in India

Products imported in bulk for bottling in India attract import duties of 222.4% besides local excise duties on par with Indian made products.

(Source: EXIM Tariffs)

..37.

Main factors for wine manufacturers

Parameter Sensitivity Explanation
Inflation High margins already under pressure; difficult to pass on higher costs

FDI

High FDI in this sector would enable the local manufacturers to acquire better manufacturing

technologies and tap the markets of the foreign partner

Excise duty

High Excise duty is around 23% of sales

Political Stability

Low demand being inelastic, would not be affected by political activity High effective tax rate is 35%

Income Tax

Sales promotion costs

High Sales promotion costs account for around 22% of sales Low Employee cost accounts for around 4-5% of

Personnel costs sales

Competition
Existing players Medium McDowell has been able to hold its own in the existing competitive scenario and garnered a 26% market share. New entrants Strong marketing and distribution networks, and brand equity of the existing players are extremely difficult to replicate.

..38.

Steps taken by the companies to counter the competition

1.

Surrogate advertising
The ban on liquor advertising has in a way it came as a blessing in disguise since it created an entry barrier for any new prospective player. McDowell has used this ban to its advantage by using surrogate advertising for products like mineral water and soda, which also generated additional revenue for the company. With a view to actively develop this area, the company has franchised the bottling and sale of McDowells purified drinking water and soda, which are now available in over 75 cities in the country. The company is also planning to launch cigars in a high price range, which it plans to import and sell under its own brand name. It is primarily focusing on the youngsters as its target market with its USP being that cigars are less harmful than cigarettes. These areas used by the company for surrogate advertising, have been identified to be yielding high-margins, especially if one compares with the present margins in the liquor industry.

2. 3. 4. 5.

Aggressive marketing and sales promotion Rich brand portfolio Web initiatives like joining the dotcom brigade Amalgamation, restructuring and consolidation

..39.

Hope: Maharashtra grape policy 2001

Accordingly, to give impetus to the grape processing and wine industry in the state, preparation of a separate policy was under active consideration of the State Government.

1. Declaration as a Preferential Area

As the Winery industry does not fall in the preferential area of granting loans, the financial institution like NABARD does not grant loans in such industries. Therefore, to get the high price of the product for farmers and to create better employment in the state, NABARD may be requested to declare preferential area for Winery Industries, enabling to grant such requisite loans.

2. Declaration as a Small Scale Industry

Within the limits of investments prescribed for the Small Scale Industry, wineries should be considered as a Small Scale Industry.

3. Concessions in Excise Duty

For those wine industries whose production has been started before 19th September, 2001, the excise duty will be charged at the rate of 50 per cent of the production expenditure incurred by such units instead of present 100 per cent rate. For those wine industries whose production have been started or would be started on or after 19th September 2001, the excise duty will be charged at the rate of 25 per cent of the production expenditure incurred by such units. Such concessions will be admissible for period of 5 years.

4. Concessions in Sales Tax It has been decided with the consent of all states in the country that the floor rate of Sales Tax on liquor will be at the rate of 20 per cent. However,

..40.

the Wine Process is totally different from the Liquor Production Process and wine unit is considered as agriculture process unit by the Central Government. Therefore, to encourage the Grapes Processing Industry in the state, a request will be made to the Empowered Committee of Finance Ministers of all states constituted by the Government of India to reduce the floor rate of Sales Tax on wine. 5. Wine Sales License Wine will be permitted for sale by Beer Bars and also licenses will be given to Wine Bars to sell wine on the basis of Beer Bars.

6. Wine Sales License Fee

An amount of Rs. 5000/- per year will be charged for License Fee for the sale of wine and this rate will not be changed for next 10 years.

7. Simplification in the system of License/Permission for Wine Production

If Wine production is taken in Winery Park as declared by the State Government, Wine Product License will be given at district level at the time of allotment of Plot. In other places for Wine Production, by simplifying the system of License the Collector of the district level will be empowered with a binding condition to issue licenses within 30 days.

8. Establishment of Wine Institute

To maintain the quality of Wine at the International Level and to make available trained man power, a separate Wine Institute will be established. For setting up of the Wine Institute, Government/ MIDC will allot the plot at the nominal rate as given to the other educational institute. Such Institute will look after the work of training, checking the quality of wine, research and information center for the Wine Industry. These institutes will be established by forming separate trust firstly at Sangli and Nashik.

..41.

9. One Window System For Winery Industry, essential license, plot, electricity supply, telephone etc. infrastructure will be made available with One Window System. 10. Establishment of Grapes Board A Grape Processing Industry Board would be established for Wine and other Grape Processing Industry in Maharashtra. The Board will consist of representatives from the concerned industry, Grapes producing farmers, State Government, government laboratories, wine institute etc. The organisation and functions of similar kinds of Boards existing in other countries will be examined before establishment of Grape Board in Maharashtra on same standards. 11 Wine Product Units - Permission for the Tourists In foreign countries, permission is given to watch the Wine Product Units. In similar manner, in Maharashtra also, permission will be given to the tourists to visit Wine Product Units for testing the wine. Also, licenses will be given to such Wine Product Units to sale wine on retail basis.

12 Taxation on Imported Wine

a) Excise Duty: Excise Duty cannot be charged on the Imported Wine. It would be examined as how to charge tax equivalent to the percentage of excise duty on the Imported Wine by other ways. b) Fees on Labels and Brand: No fee on Labels/Brands is charged on Imported Wine. However, fee is charged on the wine produced in the state and the country. This issue would be examined fees will be charged on labels and brands.

..42.

Champagne Indage Ltd.

A toast to good times!

Champagne Indage Limited (CIL) is Indias leading wine producing company with 71% market share. CIL has been instrumental to a large extent in developing the wine industry in India. It produces white, red, sparkling and rosy wines of many varieties. Apart from the domestic market, the company also exports its wines to USA, Japan, UK, Switzerland, Germany and other European countries. CIL has three wineries located in Narayangaon, Maharashtra with an aggregate capacity of 3.5mn liters of wine per annum. Champagne Indage Limited (CIL) - Indias largest wine manufacturer - is on a high growth trajectory. CIL has expanded its production capacity, which will enable it to enjoy tax breaks and improve its margins. Introduction of wine coolers (Sinn) and entry into beer segment will add to the companys revenues FY05 onwards. Recent policy initiatives to classify wine under the agro processing industry will augment its prospects. Established brands like Chantilli,

..43.

Riviera and Marquise De Pompadour gives it the armory to exploit the growing Indian fondness for wines.

Dominant position in Indian wine market

CIL is a pioneer in the Indian wine industry with a market share of 71%. The company has a dominant presence in all sub segments namely white, red, sparkling and rosy wines with a virtual monopoly in the sparkling wine category. It was the first company in India to introduce champagne under the brand name Marquise De Pompadour.

Indian wine market segmentation

12% 14% 3%

71%

Champagne

Grover

Sula

Others

Production capacity doubled in April 2004

CIL had two wineries with an installed capacity of 1.8mn liters; both situated in Narayangaon in Maharashtra. The company recently set up a third winery at the same location, for a total investment of Rs74mn. This winery, with a capacity of about 1.7mn liters, is one of the most modern wineries of the world. Commercial

..44.

operations have commenced at the third winery from March 2004 and full benefits will materialize in FY05.

Entry into the beer segment

To capitalize on its established network of warehouses and common dealer network, CIL has ventured into beer marketing. CIL targets the large Indian domestic beer market having a size of about 85mn liter cases in volume terms and Rs7bn in value terms. The new venture will be launched in two phases. The first year of operations will cover 15 states in India constituting 84% of the total national consumption of about 85mn liter cases. Under phase two next year, the reach will increase to embrace the entire country.

The company also intends to cater to the demand from Indian restaurants in Europe and North America, where taste for Indian beer in picking up.

The total advertisement expenditure planned for this project is Rs50mn, which will generate sales of 0.8mn cases and revenues of Rs120mn. We expect beer business to contribute Rs15mn to the PBT in FY05.

With its entry into beer and into other alcohol segments later on, CIL will become a complete alcoholic beverages company. This complete value proposition will take CIL far ahead of its competitors in the wine industry.

..45.

Introducing concept of wine coolers

CIL has recently launched fruity wines of different flavors called wine coolers. The drink -available in smartly packaged pint bottles- is branded as Sinn. The idea behind Sinn is to introduce wine to starters who will eventually migrate to red and white wine. Launched initially in Goa, the company introduced Sinn in Mumbai by July 2004. Positioned as an alternative to beer and rum cooler Bacardi Breezer, CIL is targeting sales of 3mn cases and revenue of Rs100mn from this brand in FY05.

Brands are the companys key assets

CILs key asset is the brand equity earned by the companys wine over the years. It owns a portfolio of 64 wine brands. The top brands among different wine categories are:

..46.

Champagne Indias wines available in market

..47.

CILs wines enjoy a strong brand image not only in the domestic market but also overseas. During the initial stages of its operations, the company spent a lot of efforts in developing a positive image for its wines. CIL regularly participates in international wine competitions. CILs wines have so far won 7 bronze and 1 gold medals at The International Wine & Spirit Competition, London. Such international acclaims enhance its brands popularity.

Price positioning ensures larger reach

CILs portfolio of 64 brands is priced in such a way that they target different income groups. Ranging from wine coolers (Sinn) priced at Rs30 per bottle to premium segment priced over Rs500, the company claims to offer wine for everyone and every occasion.

..48.

Group presence in hotel business provides marketing platform

The Indage Groups presence in the hospitality business is marked by their company Indage Hotels. Indage Hotels owns some of the most renowned restaurants, pubs and lounges in Mumbai. This unique chain of elite hotels provides the correct ambiance, opportunity and target audience to promote its wines. The emphasis of these places is to give the consumer the perfect wining and dining experience. Forward integration of such kind gives CIL a chance to strengthen its brand image and improve brand loyalty. The existing units of the company are:

Some of the upcoming units of the hotel company are as follows:

Indage Hotels is a highly visible profit making company, which will immensely help the winemaking efforts of CIL. Overall it is a unique proposition wherein the company has raw materials, production and brand portfolio of its own to top the marketing network.

..49.

Wine process at CIL Ltd

Crushing

The grapes are hand picked and transferred to the crusher. The crusher punchers the grapes and transfers it to a dejuicer which separates the pulp from the juice. While the skin, stems and other remains from the crushing are used as manure, the juice is sent for fermentation.

Fermentation

The grape juice is first chilled in a combination of stainless steel tanks and oak barrels and then fermented by adding yeast. This process is called the first fermentation of wine and it takes about 8 weeks.

Maturation

The first fermentation wine is further stored in tanks and/or oak barrels for 6-8 months for maturation. ..50.

Bottling

Once the mature wine is ready; it is stabilized through cold treatment. After testing the stability of the wine, it then is filtered to screen the balance fine particles. The filtered wine is then packed in bottles, which are washed internally and externally with double filtered water to remove bacteria and germs if any.

..51.

Projected income statement

..52.

Issues of concern
Impending equity dilution
To finance its foray into new markets and products, CIL is planning to raise Rs220mn via issue of Optionally Convertible Debentures (OCDs). The maturity period of this 4% coupon paying debt is 18 months. In the event of redemption, a premium of 4% shall be paid. The conversion price of the OCDs is fixed at 10x EPS of FY05. The proceeds of the issue will be used for the following purposes

Increasing Competition will reduce market share

Wine production and marketing is a lucrative business and thus we expect more players, both Indian and Foreign, to set up shops in the country. Gradually, the market share of CIL will slip lower from current 71%. Rapid product innovation and enhancing brand loyalty will be critical. The company may have to compromise on profit margins in order to maintain the leadership position by the company.

Thus champagne India is on its big plans with its wine sector. Though there are regulations and government laws champagne India will surely make out of this.

..53.

Conclusion
Nevertheless, wine consumption in India is currently increasing at a rate of over 20% per year and certain domestic wineries yearly sell out their entire stock. The best cannot keep pace with demand. Indeed, it is expected that wine consumption in India will grow tenfold to reach an average consumption of about 60 million bottles in the next 7-10 years.

Vineyards are multiplying in Maharashtra, as farmers see ever more advantages to switching to wine grape-growing. Nashik is the current centre of the boom. Enterprising table grape farmers have shifted to growing wine grape varieties, with generous subsidies from the state government encouraging the move. The government of Maharashtra has issued over 70 licenses in the last couple of years for setting up new wineries.

Further, the states revenue department has introduced a zero excise duty regime with 4% sales tax on locally produced wines. This is the most progressive action yet-taken on the Indian wine scene, and hopefully, other states will follow Maharashtras lead.

Again, wine has a chequered history in India, but it also has a booming present. That is beyond dispute. And the present boom is occurring even in spite of some of the most restrictive and regressive laws covering wine import, marketing, sales, etc. in the world. As and when the market (and, naturally, Indian society) liberalises, the stage is set for a glorious future. There is, however, one shadow hanging over this prediction, and that is the mistaken belief that Indian wine will never be on par with international standards. That is, as the market liberalises and more and more foreign brands are readily available, there is a ponderous threat that people will simply eschew Indian wines and lap up the foreign goods.

..54.

It need not be so. Provided that the Indian producers continue to attend to quality at least as diligently as they have been for the last two years, and preferably even more so, then the local product will be inherently competitive with the foreign rivals. It will then come down to questions of prejudice and conspicuous consumption, and these super-structural challenges may be faced by intelligent marketing and tactical distribution.

So, those who curl up their nose at Indian wines, the advice would be not to write off the local offerings. The consumption is increasing though ever too small.

Sham Chougule, the chairman of Chateau Indage puts it succinctly, "It's about half a teaspoon per head. The day it becomes one litre, the market will be one billion litres."

..55.

Bibliography
Magazines
1. Business & economics 2. Decanter worlds best wine magazine 3. Business world

News Papers
1. Economics times 2. Times Of India 3. Asian Age

Reports
1. Maharashtra state wine industry report 2. Report on wine industry- GOI

Internet
1. www.wineaustralia.com.au 2. www.the-south-asian.com/ Sept2002/Indian_Wine_industry.htm 3. www.indianwine.com/winepark.htm 4. www.indianwine.com/dsm/indianwinemarketresearch.htm 5. www.indiainbusiness.nic.in/india-profile/food-pro.htm 6. ccsindia.org/interns2003/chap21.pdf 7. www.indiainfoline.com/sect/chin.pdf 8. www.expressindia.com/fullstory.php?newsid=58498 - 48k 9. www.blonnet.com/life/2004/ 02/09/stories/2004020900110200.htm

..1..

Section 1

Section 2

Section 3

Section 4

Section 5