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Khongsai wine manufacturing industry is situated in the border town of Champhai in Mizoram, which is the
commercial capital of the state, it is also situated just a few kilometers from Hnahlan village which is the
largest Grape producing village in India, Khongsai wine manufacturing industry will generates employment
opportunity to the poor people and it will ser as the potential market for the grape cultivator. Khongsai wine
manufacturing industry will be the first wine manufacturing industry in the state and its product will be sale
in Mizoram state only as per the Government rule. There is huge market opening in the state as liquor is
prohibited in the state.

This business plan is prepared to obtain financing in the amount of Rs.2,00,00,00. The supplemental
financing is required to begin work on site preparation and modifications, equipment purchases, and to
cover expenses in the first year of operations. Additional financing has already been secured in the form of:
(1) Rs. 1,00,00,00 from Mizoram State cooperation bank in the form of loan with special rate of interest(2)
Rs.50,00,00 of personal savings from owner Ronald G Khongsai (3) Rs. 30,00,00 from state industry
department as an aid (4) and Rs. 20,00,00 from NLUP Scheme of Mizoram.

The market and financial analyses indicate that with a start-up expenditure of Rs,2,00,00,00, Khongsai
wine manufacturing industry can generate over Rs,2,00,00,00 in sales by year one, and recover the start
up expenditure. Profitability will be reached by year two.

à 

 
 
Wine produced from grapes at Champhai and Hnahlan villages on the Mizoram-Myanmar border would
soon quench the thirst of the people of Mizoram who have been under the dry law for 12 long years.

Wine processing from grapes was allowed in the state after the Mizoram Liquor Total Prohibition Act, 1995,
imposed in the state on February 20, 1997, was amended in April, 2007.

The wine produced from the Khongsai wine manufacturing industry wineries would contain 16 per cent
alcohol, and has the capacity of fermenting one lakh 650 ml bottles. One bottle would be sold at Rs 150.
Earlier, the controversial Act had prevented the grapes grown here from large-scale commercialisation
even as the premium variety of Lubrusca grapes are most suitable for producing high quality and
commercially viable wine.

The wine bottle would be labelled 'Not For Sale Outside Mizoram', it is predicted that marketing the grape
wine inside the state would be more profitable than exporting the product outside the state.

The enthusiasm of the grape farmers has been fueled by the amendment of the Mizoram Liquor Total
Prohibition (MLTP) Act. The Act had earlier prevented them from large-scale commercialization of their
products and winemaking from grapes.

The green foliages and fruits of the grape gardens in Mizoram would be ready for harvest by the later part
of July.

Generally, one quintal of grape juice is worth as much as Rs 15,000 according to the present rate of grape
juice.

Owing to the fact that wine-making grapes in India were largely imported, Hnahlan has now high hopes of
becoming the largest raw material producer for wineries across the country.

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The manufacture of grape wine involves following basic steps:
À Crushing of Grapes
À Alcoholic Fermentation
À Malolactic Fermentation, if Required
À Bulk Storage and Maturation of Wine
À Racking/Clarification and Packaging

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Wine making technology is simple. However wine making is still considered an art and
guidance of a master wine maker is a must


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The plant and machinery consists of Cleaning and washing equipment, juice extraction
plant, fermentors, storage tanks filters, pumps and bottling equipment. Entire plant and
machinery is indigenous.

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Grapes and other fruit, yeast are the main raw materials

à 
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Good quality water and power are the utilities required.








The Indian Wine Industry is growing at 25-30% per annum and currently stands at 4.6
million litres in volume terms and Rs 450 crore in value terms.
The wine market is expected to grow to 8.3 million litres by 2010. Per capita
consumption of wine remains extremely low in India; however, there is growing
consumer interest in wine with a number of wine clubs opening in Delhi, Chandigarh,
Hyderabad and Bangalore.
Nearly 80 per cent of wine sales are accounted for by the major cities, especially New
Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore.
West India accounts for over 41 per cent of total volume sales of wine in India, followed
by North India, which accounts for 29 per cent of volume sales.
Nearly 90 per cent of wine sales are for still (that is, red and white) wines. Sparkling and
rose wines, in contrast, target select segments of particularly affluent consumers.
The main market is for wines selling at Rs.300 per bottle. Even though cheaper varieties
are available, the market is not growing as fast as medium priced wines.

As most of the North eastern state are dry state there is a high demands of wine in the area, Mizoram
having around 90,00,00 strength of population is just suitable market place for one winery and there is a
transportation subsidy from the government .

Forecasting techniques
Consumption level method

End use method

Leading indicator method

Export projection
Marketing penetration
Price
auality

Packaging etc

Sensitivity analysis
Increase in per capita income

Sales forecast and Marketing

  
A unit of 5 lac liters per year capacity can be planned with investment of 5 to 6 crores.
This does not include the cost of grape plantation

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At 10 lac liters capacity the turnover will be Rs. 20 crores. Profit margin would be around 30 %.

Plant capacity
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