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Wine Industry
Market Overview
India
July 2003
Background
The Indian alcoholic beverages market is gradually opening up as quantitative restrictions are being lifted, import duties are being lowered and domestic regulations are being simplified. These developments are attracting the attention of foreign players, who are faced with a slowdown in developed markets. According to some recent reports, by 2005, the total supply of liquor in the world will be close to 282 million hl. But consumption will be only about 198 million hl. In such a scenario, India would be an attractive market for Canadian players.
An estimated 10 million people consume alcohol in India, out of a population of about 1.2 billion. The liquor industry in India is highly government regulated in terms of constraints on manufacturing, storage as well as distribution. The industry faces threat of prohibition in several states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc. However, the deep-rooted social conditioning against alcohol consumption is gradually starting to change. Consumer attitudes are relaxing as people are exposed to the Western lifestyle through the media and overseas travel. The per capital consumption of liquor in India averages 0.2 litres per annum. It has remained constant throughout the 1990s, while the consumption of beer has risen steadily since 1988 to about 0.8 litres per person per annum.
There are two major market segments for spirits in India - branded and unbranded. Total branded sales are about 70 million cases (one case of 12 bottles of 750 ml each), while 'country liquor' (unbranded, low-priced alcohol) sales are about 200 million cases. The branded segment has grown at around 6% annually for the past three years.
Alcohol is a broad term that covers three categories: spirits, beer and wine. Spirits include whisky, rum, vodka, brandy and gin. As the focus of this report is to promote Canadian wines in the Indian market, let's concentrate on the wine industry in India.
Wine making is not new for India, it has been made here for as many as 5000 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 grapes and white wine from arkawati and bhokry grapes. Under British influence in the nineteenth century, vineyards were established in Kashmir and Maharashtra and a number of Indian wines were exhibited and favourably received by visitors to the Great Calcutta Exhibition of 1884. However, Indian vineyards were totally destroyed by phylloxera in the 1890s. It took nearly half a century to replant them.
Production
India has about 123,000 acres of vineyards, but only one per cent of this acreage is used for wine. Only three wine companies are currently producing wines in India namely :
- Chateau Indage Limited, Pune
- Grover Vineyards Limited, Bangalore
- Sula Wineyards, Mumbai
The overall production of these units is approximately 150,000 cases. In addition, they also import about 20,000 cases of wines in bulk and bottle them in their plants. About 100,000 cases of inferior quality wine is produced by small local winemakers which is called 'pot wine'.
Chateau Indage Limited - Pioneer of French-style wines in India, CIL produces a variety of exquisite still and sparkling wines under the watchful eye of Californian winemaker, John Locke. CIL makes 12 types of wines, and their most popular chardonnay-based sparkling wine Omar Khyam is in the British market for over a decade now. CIL holds 75% share of the premium Still wine category and virtual monopoly in Sparkling wines.
Grover Vineyards Limited - Grover Vineyards exclusively use French wine grapes selected from the original 35 varieties of the Vitis Vinifera species to produce world class wines under the advice of two top French winemakers, Michel Rolland and Georges Vesselle. GVL also export wines.
Sula Wineyards - Sula is relatively a new entrant into the Indian wine market. They make wines of Californian sophistication.
Domestic Consumption
The overall consumption of wines in India is about 400,000 cases a year of which 85 per cent are table wines and the remaining are the expensive varieties. Out of the 400,000 cases, about 50,000 cases are imported from various sources. The trend in consumption of wines is steadily increasing. Today, the consumption per head is roughly 0.0030 litre per annum. The day it becomes one litre, the market will become over a billion litres or over 111 million cases.
Sources of Imports
The major sources of imports of wines into India are - France, Australia, Chile, Italy, South Africa, California, and Spain. Of late, Canada has also supplied small quantities of wines, particularly ice wine.
Import Duties
The present rate of import duties on wines is very high ranging from 149.6% to 264% ad valorem. See the attached Annexure I for details.
Import Regulations
Import of liquors including wines is allowed under the Open General Licence (OGL). However, each label, each size of bottle and each manufacturer has to be registered with the Department of Excise & Customs against a fee. A distributor has to obtain a license to distribute liquors. All together it is cumbersome procedure which the agents/distributors/importers have to complete before importing wines. A list of some leading importers/distributors is attached as Annexure II.
Recently, government has allowed service providers, including hotels, duty-free import of a number of items including liquors equivalent to 5% of the foreign exchanged earned by them in the preceding three licensing years.
For further details contact the Canadian High Commission, New Delhi or its offices in Chandigarh, Mumbai and Bangalore.
Prepared by:
Ram Gupta
Senior Advisor (Trade)
Canadian High Commission
New Delhi 110 021. India
Email: ram.gupta@dfait-maeci.gc.ca
Annexure - I
| Product | Applied Tariff (or Basic Duty) | Other Duties | Effective Duty |
|---|---|---|---|
| Wine /beer (CIF value up to US$25 per case*) |
100% | 75% additional duty 4% special additional duty |
264% |
| Wine /beer (CIF value greater than US$25 but less than US$40 per case) |
100% | 50% additional duty (min US$37 for applied tariff plus additional duty) 4% special additional duty |
212% |
| Wine / beer (CIF value greater than US$40 per case) |
100% | 20% additional duty (min US$40 for applied tariff plus additional duty) 4% special additional duty |
149.6% |
| Spirits (CIF value less than US$10 per case) |
166% | 150% additional duty (min US$40 for applied tariff plus additional duty) 4% special additional duty |
591.6% |
| Spirits (CIF value more than US$10 but less than US$20 per case) |
166% | 100% additional duty (min $40 for applied tariff plus additional duty) 4% special additional duty |
453.28% |
| Spirits (CIF value more than US$20 but less than US$40 per case) |
166% | 50% additional duty (min US$53.20 for applied tariff plus additional duty) 4% special additional duty |
315% |
| Spirits CIF value of more than US$40 per case) |
166% | 25% additional duty (min US$53.20 for applied tariff plus additional duty) 4% special additional duty |
245.8% |
* a case is 12 bottles or 9 litres
Annexure - II
Some Leading Importers of Value-Added Food
Mr. K. P. Ramachandran
Purchase Manager
Food World
4th Floor, Spencer Plaza
769 Anna Salai, Chennai - 600 002
(Supermarkets)
Phone: 91-44-2852 3611, 2831 0990 (D)
Fax: 91-44-28523691
Email:fsl@md4.vsnl.net.in
Mr. C. Gopalkrishnan
Director
Nilgiri Dairy Farm Ltd
171 Brigade Road
Bangalore-560 001
(Supermarkets)
Phone: 91-80-5588401/702, 552 7124
Fax: 91-80-5585348, 552 7125
Email:nilgirisnest@vsnl.net
Mr. M. C. Bhandari/ Mr.V.P.Chohani
Vice President/ Chairman
Vitan Departmental Stores & Industries Ltd
172 A Luz Church Road, Mylapore
Chennai - 600 004
(Supermarkets)
Phone: 91-44-2499 3850
Fax: 91-44-2466 0912
Email: vitan@eth.net
Mr S. Chandrasekhar
Purchase Manager
Subhiksha Trading Services (P) Ltd
37-F, Velachery - Tambaram Road
Vijay Nagar, Velachery
Chennai - 600 042
Phone: 91-44-2243 4518/9
Fax: 91-44-2243 4518/9
Mr. Kiran Wadhwana
Joint Managing Director
Akshar Super Market (BSI Ltd.)
Plot no. 5, 2nd Floor, Zone II
Maharana Pratap Nagar
Bhopal-462 011
(supermarkets)
Phone: 91-755-557091, 270 714/715
Fax: 91-755-271152
Email:bsibpl@bom6.vsnl.net.in
Importers/distributors
Mr R. L. Nayar, / Mr G.K. Nayar
Managing Director / Director
Geekay Sales Corporation
C-15 Hari Nagar
New Delhi -110 064
(Meat products,confectionery,bakery products,fruit juices)
Phone : 91-11-2549 1152, 2540 1928
Fax : 91-11-2540 3638/2641 8212
Cellphone: 98100 02072
Email: gksc@nda.vsnl.net.in
Mr. Rahul Rastogi
Empire Business Solutions Pvt Ltd.,
22-23 Panchsheel Enclave Market,
New Delhi - 110 017
(Wines,chocolates,fruit juices)
Phone: 91-11-2649 6682
Fax: 91-11-2649 6352
mailto:Email:empireco@bol.net.in
Mr. Raman Grover
Soft Sensations
S-400 Greater Kailash Part I
New Delhi 110 048
(Wines,chocolates,cheeses,juices)
Phone : 2648 2829/26214090/2645 1020
Fax : 91-11-2646 3232
Cellphone: 98110 11558
Email : rgrover@vsnl.com
Mr. A. K. Jain (Sethi)
Director
Sunita Petroleum Ltd.
T-9 Green Park Extension
New Delhi 110 016
(Bakery,confectionery,juices,wines)
Phone : 91-11-2619 8697/8979, 2619 4009
Fax : 91-11-2619 0019
Cellphone: 98100 39999
Email : spl@giasdl01.vsnl.net.in
Mr. Farrokh Pooniwala,
Managing Director
Armin Enterprise
12 "Gulnar" Ground Floor
Opp. Sushma Clinic, Hill Road
Bandra (West)
Mumbai-400 050
(Frozen foods, frozen vegetables,soups,chocolates, wines)
Phone: 91-22-2642 3026/2641 5656
Fax: 91-22- 2641 5656
Cellphone: 98211 58554
Email: arminent@vsnl.com
Mr. Kapil Grover - Managing Director
Mr Bharat Deshmukh, Sales Manager
Grover Vineyards Limited
Anand Bhavan
348 Dr. D.N. Road,
Mumbai-400 001
(Wines)
Phone:91-22-2204 3885/3886/4072
Fax: 91-22-2287 4021
mailto:Email:hei@mantraonline.com
Mr. Rajnikanth Dwivedi
Manager
Brindco Sales Ltd.
H 103 Ansa Industrial Estate
Saki Vihar Rd,
Saki Naka
Andheri, Mumbai- 4000 72
(Wines and alcoholic beverages)
Tel: 91-22-2859 1502
Fax: 91-22-2859 6528
E mail: wib@im.eth.net
Mr. Leonard Menezes
Vice President - Marketing
Sanamex India Private Limited
D-215, Floral Deck Plaza
MIDC Central Road
Andheri (East)
Mumbai - 400 093
(Wines)
Phone: 91-22-2830 6904,2830 6916
Fax: 91-22-2830 6910
E-mail: sanamexindia@powersurfer.net
Mr. Satish Bagrodia
Chairman and Managing Director
Winsome Textile Industries Ltd.
SCO 144-145, Sector 34-A
Chandigarh - 160 022
(Beverages)
Phone: 91-172-603966,603550
Fax: 91-172-603804
E-mail: satish@winsomegroup.com
Mr. Dilip Tawadey
Managing Director
Fourseasons Group of Companies
215, 217 Somdutt Chamber II
9 Bhikaji Cama Place
New Delhi-110 066
(Bakery,confectionery,juices,wines)
Phone: 91-11-2619 3247, 2616 3098, 2610 8931
Fax: 91-11-2619 3784
Email: timeless@del2.vsnl.net.in
Website: http://infoexport.gc.ca/ie-en/www.maunaloa.com
Bonded Stores/Diplomatic Commissaries
Mr. Alfred Arambhan & Mrs. Nalini Arambhan/Mr Kali S Mehta
Cawasji Behramji & Co.
308, Dorin Nariman Street, Fort,
Mumbai 400 001
(Bonded Stores supplies to ships/diplomats)
Phone: 91-22-2218 7307, 2218 3152/2059
Fax 91-22 -2218 2991
Email: tssindia@vsnl.com
cawasji@vsnl.net
Mr. Homrez Mehta
Siganporia Bros.
4/5/6, New Scale Building, Inside M.O. Phule Market,
P.O.Box No. 324,
Mumbai - 400 001
(Bonded Stores)
Phone: 91-22-2344 2718 /234 45819/2343 9907
Fax 91-22-2343 4719
Email: siganporia@vsnl.com
Mr. Ashok Garg - Chairman
R.R. Interntional
Kapadia Chambers Basement
51, Devji Ratansey Marg
Dana Bunder, Mumbai - 400 009
(Bonded stores)
Phone: 91-22-2374 5020
Fax: 91-22-2373 8555
Email: rri@bom5.vsnl.net.in
Mr Paras Bhatia
K. T. Bond Stores
Abhay Steel House, Basement No.1,
Baroda Street, Dana Bunder, Masjid (E)
Mumbai 400 009.
(Bonded Stores)
Phone: 91-22-2374 6555
Fax: 91-22-2374 4989
Email: ktbs@bol.net.in
Mr. B. Bhomisha
H. B. Irani (Bond)
579 Inside M. J. Phule Market
Mumbai-400 001
(Bonded Stores)
Phone: 91-22-2340 1609
Fax: 91-22-2342 7963
Email: hbirani@vsnl.com
Mr. Roop Madan
Director
Diplomat Stores
C-1 Shopping Centre
Vasant Vihar , New Delhi-110 057
(Bonded Stores)
Phone: 91-11-2615 1116/7/8/9
Fax: 91-11-2614 1136
Email: rmadan@vsnl.com
Email: dmadan63@hotmail.com
Mr. Rohit Singh
Area Sales Executive
United Breweries International
UB House, F-44-A South Extension Part I
New Delhi-110 049
(wines,liquors,beers)
Phone: 91-11-2469 0341/44 - Extn 233
Fax: 91-11-2469 8007
Email: rohitsingh@ubmail.com
Mr. K. S. Mudder
Chief Executive
Precision Enterprises
C-8/8177 Vasant Kunj
New Delhi-110 070
(Bonded stores)
Phone: 91-11-2613 2434, 2612 5424
Fax: 91-11-2613 2375
Email: ksmudder@del2.vsnl.net.in
Mr. Rajiv Singhal
Managing Director
Rama & Company
5205-6 Basant Road
New Delhi-110 055
(Bonded stores)
Phone: 91-11-2362 5819/2354 5898
Fax: 91-11-2355 4505
Email: ramaco@del3.vsnl.net.in
Mr Mukul Mehra/Mr S.K. Wadhera
President
Global Tax Free Traders Inc
87 Sainik Farms, Cental Aenue
Khanpur,
New Delhi - 110 062
(Bonded stores, liquors etc)
Phone: 91-11-2332 5031/1115
Fax: 91-11-2332 0750
Mr.R.B.Marwah/Mr Suraj P. Marwah
Continental Sales Emporium
12 A.B. Community Centre,
Safdarjung Enclave,
New Delhi - 110 062
(Bonded stores)
Phone: 91-11-2610 7955/7356
Fax: 91-11-2617 7718
Email: marwahcse@rediffmail.com
Mr. Sunil Khanna/Mr.Gautam Khanna
Embassy Stores
S-28 Okhla Phase II
New Delhi - 110 020
(Bonded stores)
Phone: 91-11-2683 8189, 2684 7688
Fax: 91-11-2684 2120
Email: embassystores@yahoo.com
Mr. Vipin Khanna, Proprietor
Ideal Stores
C-8/1 Basement, Vasant Vihar
New Delhi - 110 057
(Bonded Stores - liquors,cigarettes,foodstuffs)
Phone: 91-11-2614 3795/3951,2615 2224
Fax: 91-11-2614 7150
Email: ideal@ndb.vsnl.net.in
Mr Chetan Seth, Managing Director
Raas Intratech (P) Ltd
1, Basant Lok, Vasant Vihar
New Delhi - 110 057
(Bonded stores)
Phone: 91-11-2614 7113
Fax:91-11-2614 7917
Email: chemon@vsnl.com
Mr.Anish Bindra
Director
S.N.Sahni & Company
C-56, New Azadpur Subzi Mandi
New Delhi - 110 033
(Bonded stores)
Phone: 91-11-2742 8020
Fax: 91-11-2741 2360
E-mail: abindra@vsnl.com
Mr. R. C. Gupta
Vice President
Ashok International Trade Division
ITDC
Scope Complex, 7 Lodi Road
New Delhi - 110 003
Phone: 91-11-2436 1772/0303
Fax: 91-11-2436 4856
Email: itdcavp@vsnl.net
Mr. Rohit Mehra, Managing Director
Mohan Brothers (P) Ltd
2nd Floor, Plaza Cinema Building,
Connaught Place,
New Delhi - 110 001
(Bonded stores)
Phone: 91-11-2332 2404, 2332 7897
Fax: 91-11-2332 7673
Email: melco@nda.vsnl.net.in
M/s J.P. Engineers
c/o Global Shipping Services (Mr.P. Sreedhar)
194 Tambu Chetty Street,
Chennai-600 020
(Bonded stores)
Phone: 91-44-2524 2389, 2523 0853
Fax:91-44-2524 2389
Mr. Ray Chaudhuri - Mg. Partner
M/s Victory Ship Store International
111 Coral Merchant Street, (Mannady)
Chennai - 600 001
(Bonded stores)
Phone: 91-44-2522 1333, 2527 2230
Fax: 91-44-2522 4933
Email: vssi@vsnl.net.in
Mr R. K. Parsan
Paras Brothers
18-B, Sukea Lane
Calcutta 700 001
(Bonded stores)
Phone: 91-33-242 3870/4657
Cellphone: 98310 63489
Fax: 91-33-242 8621
Email: parsan@cal3.vsnl.net.in
Dipak K. Mookerjee
Director
K.T. Bond Pvt. Ltd.
1, Satya Doctor Road
Khidderpore, Kolkatta - 700 023
(Bonded stores)
Tel: 91-33-459 4659
Fax: 91-33-459 5244
E-mail: mmcl@cal2.vsnl.net.in
Mr. Lalit Asrani
Partner
Roda Foods
62 HJ Colony , Sawan Park
Ashok Vihar, Phase III
Delhi India 110 052
(Bonded stores)
Phone : 91-11-2714 4148
Fax : 91-11-2741 3339
EMail : rodafood@del3.vsnl.net.in
Mr. Hira Singh
Commissary Manager
American Embassy
Chanakyapuri
New Delhi-110 021
(Commissary)
Phone: 91-11-2419 8000
Fax: 91-11-2419 0017
Email: singhhb@state.gov
Mr. Vishal Dewli
Commissary Manager
American Consulate General
Lincoln House,
78 Phulabhai Desai Road,
Mumbai - 400 026
(Commissary)
Phone: 91-22-2363 3611-18
Fax: 91-22-2363 0350
Email: dwalivb@state.gov
Ms Mai Landymore
Commissary Manager
American Consulate General
Mount Road,
Chennai - 600 006
(Commissary)
Phone: 91-44-2811 2000
Fax: 91-44-2811 2020
Ms Helen Taylor/Lesley Meaker
Manager
Canada, Australia, New Zealand Association (CANZA)
c/o Canadian High Commission
Chanakyapuri
New Delhi-110 021
(Commissary)
Phone: 91-11-2687 6500 extn. 3570/3571
Fax: 91-11-2687 0072/6579
Email: canza@del3.vsnl.net.in
Luxury Hotels
Mr. Girish Shenai
Materials Manager
Oberoi Hotels
Nariman Point
Mumbai - 400 021
Phone : 91- 22- 2282 9632, 2232 6130, 2232 5757
Fax : 91-22-2284 3366/2204 3282
Email: girish@oberoi-mumbai.com
Mr. Yogender Singh Guleria
Materials Manager
The Taj Mahal Hotel
Apollo Bunder
Mumbai - 400 001
Phone : 91-22-2202 3366
Fax : 91-22-2283 7647
Email: tmhpurch.bom@tajhotels.com
Mr. J.D.F. Lam
Vice President
Central Purchase
Taj Group of Hotels
Apollo Bunder
Bombay-400 039
Phone: 91-22-2267 1616
Fax: 91-22-2269 0642
Email: jdf.lam@tajhotels.com
Mr. M.D. Kapoor,
Director Commercial & Marketing
Indian Tourism Development Corp. Ltd.
6th Floor, Scope Building, Core 8
7 Lodi Road
New Delhi-110 003
Phone: 91-11-2436 0343
Fax: 91-11-2436 0345
Mr.N.K. Kapoor
Corporate Director (Materials)
E I H Ltd.
7 Sham Nath Marg
Delhi-110 054
Phone: 91-11-2389 0505
Fax: 91-11-2389 0549
Email: nkkapoor@eih-india.com
Mr. Amit Oberoi
Director - Food & Beverages
The Imperial New Delhi
Janpath
New Delhi - 110 001
Phone: 91-11-2334 1234/5678
Fax: 91-11-2334 2255
Email: oberoi@theimperialindia.com
Mr. R.R. Narasimhan
Manager (Purchase)
and
Mr. Sunil Wadhwaney
Manager (Imports)
Central Purchase Department
Welcomegroup Headquarters
25 Community Centre, Basant Lok,
Vasant Vihar
New Delhi-110 021
Phone: 91-11-2614 4886/3873
Fax: 91-11-2614 5372/6452
Email: chqcp@vsnl.com
Mr. Narotam Sharma
Manager (Materials)
Hotel Hyatt Regency
Bhikaji Cama Place
Ring Road
New Delhi-110 066
Phone: 91-11-2679 1234
Fax : 91-11-2679 1025
Email: narotams@ndf.vsnl.in
Mr.A.K. Tiwari
Director (Purchase)
Hotel Intercontinental
Barakhamba Avenue, Connaught Place
New Delhi - 110 001
Phone: 91-11-2341 1001
Fax: 91-11-2370 9123
Email: newdelhi@interconti.com
| Date Modified: 2004-10-04 | Important Notices |