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Winery

In: Business and Management

Submitted By amit090
Words 2353
Pages 10
India’s Emerging Wine Industry | December 21: While India doesn’t have the most ideal climate for growing wine grapes, its local industry which is still at a nascent stage, is growing at a rate that more established countries can only envy, writes Subhash Arora looking at what’s driving the growth and how the industry is responding. | After a gap of about three years when the global meltdown and the Mumbai terrorist attack in November 2008 brought the Indian wine industry to its knees, things are looking up once again, with the annual growth of about 25% though not every producer is out of woods.The industry which was barely 150,000-200,000 case strong at the turn of the millennium was growing at the rate of 25-30% for the previous 5 years when the downfall occurred in 2008 after it had reached a peak of 1.5 million cases including about 250,000 cases of imported wines. 2008-2011 saw a slide in the domestic wine production and consumption. It flirted with the peak in 2011-12 (Apr-Mar) and a growth of 20-25% is expected to continue during the next 5 years.Indian market at a glanceA population of 1.13 billion with over half under 35 years, offers a huge opportunity for wine producers. About 300 million belong to the middle class with 30 million as potential wine drinkers; currently there are less than 2 million. India has been traditionally a liquor guzzling country with over 400 million cases consumed annually. Even the relatively new beverage beer has created 160 million-case market because of lower prices and the penchant of youth. But as the younger population achieves adulthood, it is expected to also add wine as a choice.Indian Constitution discourages consumption of alcohol and authorizes States to formulate their own policies of production, distribution, procedures and pricing, making it complicated for the users, marketers and producers.State of…...

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