Project Wine

Chapter IV
ANALYSIS OF MAHARASHTRA WINE

INDUSTRY
YEAR: 2002 -2012
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4.1 Wine Industry In India
4.1.1 Overview
Alcoholic beverages in the India appeared in the Chalcolithic Era. These beverages
were in use between 3000 BC - 2000 BC. Sura / Somrasa, a beverage distilled from
rice meal, wheat, sugar cane, grapes, and other fruits and was popular among the
Kshatriya warriors and the peasant population. The Hindu Ayurvedic texts describe
both the beneficent uses of alcoholic beverages and the consequences of intoxication
and alcoholic diseases. Most of the people in India and China have continued,
throughout, to ferment a portion of their crops and nourish themselves with the
alcoholic product.
Indians today drinks Whisky, Rum, Beer, Wine, Gin, and Vodka. Between 15 and 20
per cent of Indian people consume alcohol and, over the past twenty years, the
number of drinkers has increased from one in 300 to one in 20. According to The
Hindustan Times, it is estimated that of these 5% can be classed as alcoholics or
alcohol dependent. This translates into about five million people addicted to alcohol.
The Intake of Indian Made Foreign Liquor (IMFL) is growing at the considerable rate
of 15% a year. Again, The Hindustan Times says that 65% of the Indian liquor
market is controlled by whiskey manufacturers. Liquor industry is today exporting a
sizable quantity of India Liquor products to other countries. The Indian market has
traditionally been inclined towards the unorganized sector, which accounts for two-
thirds of the liquor consumption in India. However, maturing tastes and preferences
are making the Indian liquor market more Brand-led.
Over the next five years, the Indian market for alcohol is projected to grow at 10% a
year, more than in China, the U.S. and Europe combined. Drinking patterns in India
are unlike those of any other major market. Hard liquor is far more popular than beer
and wine, with spirits accounting for about 88% of the market. Nearly all of that is
whiskey (around 70%), a legacy of the colonial fondness for Scotch. India is the
largest whiskey market in the world. Wine consumption, meanwhile, is growing
much faster than spirits or beer in India, but from a much smaller base. Only about
700,000 cases were sold last year, about 2% of the total alcohol market, but it has
benefited hugely from the growth of the middle class, particularly women, for whom
drinking wine is a mark of urban sophistication. The wine market has grown from
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virtually zero 10 years ago to $253 million last year, and it is expected to more than
double to $630 million by 2013.1
Figure No.4.1:Share of Alcohol Consumption in India
2%
10%
Spirit
Beer
wine
88%
(Source: Indian alcoholic beverages report by Mindpower solutions)
India is a rapidly emerging wine economy in terms of both production and

consumption, and has the potential to become a significant player on the world wine
scene. This stems from the fact that the country has consistently experienced the
highest growth in consumption in the world, around 20–30% a year between 2002 and
2010. To meet this demand, a significant quantity of wine is imported annually but
India also has a mix of well-established and evolving domestic wineries.
Historically, the introduction of vines to the Indian subcontinent and the subsequent
proliferation of grape growing came from Persia in 500 BC. There is no evidence that
commercial viticulture existed before the 19th century, when British colonialists
supported the establishment of a local source of supply. However, just as the
embryonic wine industry started to take shape it suffered a devastating blow from the
outbreak of phylloxera. Religious and cultural vetos on alcohol consumption also
proved to be a difficult challenge for the growth of Indian wine after independence
from Britain. This continues to be the case in many parts of the country, where
prohibition is enforced through local laws.
Despite these obstacles, a large-scale expansion in the Indian wine industry was
experienced in the late 1980s and early 1990s as a result of globalization and liberal
economic measures, as well as notable initiatives in modern wine growing by
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producers such as Chateau Indage – India's first commercial winery. The current
surge in wine consumption is largely driven by the growth of an affluent 'middle
class'.
Because of its location, India is not an easy place for large-scale viticulture. With
latitudes ranging from 10 to 35 degrees north, the climate can be harsh and the
tropical conditions mean that vines have to cope with a short growing season in
addition to extreme heat and an unforgiving monsoon. Typical summer temperatures
on the plains can reach more than 116oF (47oC) and rainfall can be intermittent. The
climatic extremes are also exacerbated by high levels of humidity rising from the
Arabian Sea and the Indian Ocean. Additionally, Indian wine producers must protect
their vines from conditions such as sunburn, fungal diseases and over-ripeness.
Altitude plays the most significant role in site selection, as elevation ensures cooler
growing conditions and also protects the vines from strong winds if they are planted
in sheltered spots. The altitude in some of the prime growing areas reaches 3000ft
(900m). A varied range of nutrient-rich soil types, ranging from well-drained sandy
variants to complex metamorphic formations produced by the weathering of rock,
lends character to Indian wines.
The majority of India's wine regions are concentrated in the south-western part of the
country, primarily in the state of Maharashtra but also in Karnataka. The slopes of the
Sahayadri mountain range which forms the 'Western Ghats' have been identified as
the most suitable place for viticulture, due to high altitudes and a correspondingly
mild macroclimate. Some of the most well-known wine-producing areas in
Maharashtra include Nashik, Sangli, Sholapur, Satara, Ahmednagar and Pune. In the
state of Karnataka, the best sites are situated on the foothills of the Nandi Hills on the
outskirts of Bangalore. Other notable grape-growing areas are found in the states of
Himachal Pradesh, Tamil Nadu, Punjab, and Jammu & Kashmir. A few areas in the
north-east are also attracting attention due to their high location and cooler climates.
Since the beginning of the current renaissance in its wine industry, India has adopted
a modern approach to production, both in its vineyards and wineries. Most
commercial producers use phylloxera-resistant grafted vines imported from abroad.
Contemporary vineyard practices, ranging from top-class soil and canopy
management to a wide range of trellising methods, are used to combat the climatic
extremes and control high yields caused by the fertile soils (it is not uncommon to
find yields of 900hL/50 tons per hectare). Bordeaux's Michel Rolland is the
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consultant winemaker for Grover Vineyards,a well-known winery based near
Bangalore.
Figure No.:4.2: Map of Grape Wine Regions in India
(Source: www.googlemap.com)
India's low level of wine production contrasts with its total grape output of around
1.7m tons per year; the majority is used for table grapes and raisins, with only about
10% going to the production of wine. An even lower proportion comes from high
quality international varieties, although Cabernet Sauvignon, Shiraz, Merlot and
Zinfandel for reds, Chardonnay, Chenin Blanc, Clairette and Sauvignon Blanc for
whites are all grown. Thompson Seedless and Sultana vines produce the majority of
India's grapes, with other notable varieties including Isabella (local name: Bangalore
Blue) and Muscat Hamburg (local name: Gulabi). Wine styles range from heavy and
alcoholic fortified wines to quality still wines and sparkling wines made by
the traditional method.2
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Highlights:
 India produces 15 million liters per annum. Present stock 30 million liters.
 Consumption 1.5 million cases i.e. 13.5 million liters per annum.
 Grape Plantation on 4000 hectors.
 Around 90 Grape Processing Units in the country.
 Total investment in the sector INR 2000 Corers.
 Present Employment in the sectors is 45000 nos.
 The size of the wine industry in India is estimated at Rs.1,050 crore and has
grown at a compounded annual growth rate of 33% between 2003 and 2008.
 Volume of wine consumed in India has grown from 26 lac liters in 2003 to
1.10 crore liters in 2008.
 Consumption is mainly concentrated in the major metropolitan areas, which
account for nearly 80% of wine demand.
 The biggest consumption areas are located in Mumbai (37%), Goa (10%),
Delhi (25%) and Bangalore (12%).
 The wine industry is estimated to achieve 7.2 crore liters of wine consumption
by 2020 at a compounded annual growth rate of 18%
 Growth of the domestic wine industry has provided significant employment
opportunities to unskilled laborers
 Demand for grapes for wine production has provided livelihood to a number
of farmers3
4.1.2 Indian Wine Market Segmentation

4.1.2.1 Product Wise
The Wine industry has been divided into different type of wine i.e. Red Wine, White
Wine, Sparkling Wine, Rose Wine and Vermouth Wine. Red wine is consumed the
most, followed by white wine, sparkling wine, rose wine and vermouth wine.
Red wine is the most consumed type of wine in India. It accounts for more than half,
i.e. 52% of the total wine consumed in India. White wine is also following it closely,
and is positioned as the second most consumed wine in India with a consumption
share of 40%.
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Figure No.:4.3: Product wise Wine Consumption in India
Sparkling wine Vermouth wine

3% 2%
Rose wine
3%
Red wine
White wine
52%
40%
(Source: Cutting edge issues of Wine industry by Mr. ShyamGokarn)
Rose wine is the fourth largest wine consumed in India with a market share of 3%.
Sparkling wine or champagne is the third largest wine segment with the wine
consumption accounting for 3% in India. Champagne consumption has mostly been
limited due to the perception and positioning as a celebration or a special occasion
drink. And Vermouth wine consumed with 2% market share. Vermouth is a fortified
wine type. It can be red or white wine that has been flavored by the addition of herbs
and barks like cardamom, cinnamon, marjoram and chamomile. It is used primarily as
pre-meal appetizer.
4.1.2.2 Location Wise

Policies and actions plans on wine and other alcoholic beverages is control by the
state Government. Some state government like Maharashtra, Goa, Karnataka, Tamil
Nadu, etc. support to the wine industry but in some state sales of wine are prohibited,
like in the state of Gujarat, Manipur, Mizoram and Nagaland. State wise wine
consumption as follows:
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Table No. 4.1: State wise Wine Consumption in India
State Market share in %
Andhra Pradesh 1.20%
Assam 2.20%
Delhi 10.70%
Goa 26.40%
Karnataka 19.40%
Maharashtra 25.19%
Punjab 0.90%
Rajasthan 1.00%
Tamil Nadu 1.50%
Uttar Pradesh 1.00%
West Bengal 2.00%
Other States 7.80%
Figure No.4.4: State wise Wine Consumption in India
30%
25%
Market Share (in %)
20%
15%
10%
5%
0%
States
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4.1.2.3 Year wise
There is no official compilation ofwine statistics in India but thereare many sources
quoting differentfigures. Going by some we can say thatwine is approximately 1.5
million cases market as per 2009 and is now said tobe nearly 2.2 million cases.
Theproportion of wine import in the markethas also increased, from
approximately13.3% in 2003 to 16.7% of the market in2007. Strong wine growth in
sales valueand volume are expected to continue inthe future, with sales estimated to
reach38 million liters by 2013; a growth of241% from 2008 in terms of both,
salesvalue and volume. Year wise wine consumption in India as follows:4
Table no. 4.2: Year wise Wine Consumption in India

Year Wine consumption (in ‘000 liters)
2006 8,341.80
2007 11001.1
2008 12,634.40
2009 13,740.10
2010 15,554.40
2011 16,362.30
2012 17,269.30
(Source: Wine in India, a research report by Euromonitor International)
Figure No.:4.5: Year wise Wine Consumption in India
20,000
Wine Consumption (in '000 liters)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Year
(Source: Wine in India, a research report by Euromonitor International)
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4.1.3 Future of Indian Wine Industry
The prospects of growth for wine in India are quite high. About 600 million Indian’s
are currently below the legal drinking age and 100 million will come of that age over
the next 3 to 4 years. So, the consumption of alcoholic beverages such as wine is
expected to increase. In spite of India’s high import tariffs on wine, this country was
one of the world’s fastest growing wine markets. Until the year 2008-2009, growth
was about 25% to 30% every year. However, sales fell in the year 2009-2010 for the
first time since 2001. Wine exporters blame the slump on the 26/11 Mumbai terror
attacks that led to a dip in tourism in India. Despite the recent setback, consumption
of wine in India is projected to increase to 2 million cases by 2011 and 4 million cases
by 2015.
Table No.:4.3: Future of Wine Industry in India
Classification Up to year 2013 Year 2020 estimated
Wine consumption 1.1 crore liters 7.2 crore liters

Revenues from wine industry Rs. 1,050 crore >Rs. 10,000 crore
Land under cultivation 10,000 acres 21,000 acres
Families depend on grape cultivation 10,000 21,000
Families employment by winery 6,750 13,500
Indirect employment 10,500 24,000
(Source: Details from All India Wine Producer Association, Nashik)
4.2 Wine Industry in Maharashtra

Maharashtra is the largest wine producing state, with 40,000 hectares of grape
cultivation and 1,100,000 tons of annual production. Despite these numbers, 98% of
the cultivation is table grapes and a mere 2% is used for other types of production,
such as dry fruits, grape juice, syrup, jam and wine. This results in only approximately
3,237 hectares of land being cultivated for wine grape varieties in Maharashtra, where
red, white, rose, and sparkling wines are produced.
Maharashtra accounts for more than 85% of the country’s total wine production. The
Maharashtra Grape Processing Industrial Policy of 2001 designated grape wineries the
status of food processing industry, and thus eligible for the same benefits.
Maharashtra has significant development plans for boosting the wine industry,
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including more wine institutes in the state, joint ventures with other global
institutions, and a separate horticulture board. In 2012, Maharashtra possessed 67
wineries with more on the way. However there was significant growth from only
approximately six wineries by 2002. Within Maharashtra, the highest concentration of
wine producing takes place in the regions of Nashik and Sangli, followed by the Pune
district. Nashik is known as the wine capital in India, possessing the most beneficial
climate for grape production, and thus is also the largest grape producer. Other main
districts for grape growing in Maharashtra are: Sholapur, Ahmednagar, Latur,
Osmanabad and Sangli.
Hot Tropical Region: This region covers Nashik, Sangli, Solapur, Pune, Satara,
Latur and Osmanabad districts of Maharashtra; Hyderabad, Ranga Reddy,
Mahbubnagar, Anantapur and Medak districts of Andhra Pradesh; and Bijapur,
Bagalkot, Belgaum, Gulberga districts of northern Karnataka lying between 15° and
20° N latitude. This is the major viticulture region accounting for 70% of the area
under grapes in the country. Vines do not undergo dormancy and double pruning and
a single harvest is the general practice in this region. Maximum and minimum
temperature is 42°C and 8°C, respectively. The major problems in this region are soil
and water salinity and drought. Berry growth is impaired and in certain locations pink
blush sometimes develops on green berries due to temperatures that drop to a low of
8°C.
Maharashtra’s tropical latitude poses significant challenges to growers. The wine
regions of the state are much closer to the equator than any in Europe or North
America, and the South Asian Monsoon brings heavy rainfall to the region between
June and September (the traditional northern hemisphere growing season). The lack of
seasonal temperature variation means that growers can delay budburst through
aggressive pruning until after the monsoon has passed, and the growing season
instead follows that of the southern hemisphere, from September to March.
The hot, humid climate is further moderated by the high altitude of the state’s wine
regions, which are mainly centered on the Western Ghats. At higher altitudes, sunny
days are followed by cooler nights, slowing the ripening process; this helps the grapes
to retain acidity as they develop flavor. As a result, Maharashtra wines are well
balanced and display good varietal character.
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Figure No.:4.6: Wine Grape Growing Regions in Maharashtra
(Source:http://www.mapsofindia.com)
4.3 Wine Production in Maharashtra

4.3.1 Year Wise
Since FY 2002, rise in Maharashtra state wine industry was found encouraging and
because of the growing industry, investment was found to be at its peak. There was a
sustainable growth seen for initial 5 years. However, because of various reasons,
substantial loss was seen in the growth.
It is understood from the data of wine manufacturing in Maharashtra that, until FY
2008, wine production was increasing gradually. However, because of global
recession in year 2008, decline in growth was observed until FY 2012. FY 2008 was
seen to be with record highest wine production in Maharashtra. However, excess wine
production and fewer sales in FY 2008, there was sudden loss observed in year 2009.
But one interesting fact is that, the wine production is not picking up after FY 2009.
Figures of the same can be seen in the below table.
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Table No.:4.4: Year wise Wine Production in Maharashtra
Year Wine Production (in liters)
2004 30,14,500
2005 54,64,000
2006 94,79,000
2007 1,32,76,000
2008 2,11,21,000
2009 1,00,00,000
2010 1,10,00,000
2011 1,25,00,000
2012 1,32,01,000
(Source: Technical Wine Report, 2012)
Figure No.:4.7: Year wise Wine production in Maharashtra
25000000
Wine Production ( in Liters)
20000000
15000000
10000000
5000000
Year
4.3.2 Wine Wise

Being red wine widely accepted for consumption, resulted into higher percentage of
red wine production. Red wine is the highest manufacturing type for the wine
industry, followed by White wine, Rose wine and Sparkling wine.
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Table No.:4.5: Wine Production as per wine types in the FY 2012 in Maharashtra
Wine Type Wine Production (in liters) %
Red wine 88,67,200 67
White wine 34,04,800 26
Rose wine 3,66,000 3
Sparkling wine 5,63,000 4
Figure No.:4.8: Wine wise Production in Maharashtra
White wine
26%
Rose wine
3%
Red wine
67%
Sparkling wine
4%
4.3.3 Wine Industry Investment in Maharashtra

As explained above, wine industry has seen its golden days until year 2008 and one
can see the exponential growth in the wine industry production and of course
investment. However, shift in trend was observed in the wine industry investment
after FY2008. Shift in paradigm has resulted into slow growth over last five years.
Table No.:4.6: Investment in Wineries in Maharashtra

Year Investment in Crore
2004 77.75
2005 110.17
2006 160.31
2007 247.71
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2008 328.97
2009 431.71
2010 451.60
2011 477.10
2012 510.10
Figure No.:4.9: Investment of Wineries in Maharashtra
600
500
Investment (in Crore)
400
300
200
100
Year
4.3.4 Major Players in Wine Production & Competition

4.3.4.1 Chateau Indage
Chateau Indage is the pioneering of the quality wine industry in India. Sham
Chougule, an investor from Mumbai, started producing sparkling wines in the 1980s.
It was mainly for the exporting purpose. Their 40% sales figure is come from the
exporting. It is based in Narayangaon– on the Pune-Nashik road. Chateau Indage has
emerged as the India’s largest wine producer in a given time. It offers two sparkling
wines, two white wines and a pair of reds (Cabernet Sauvignon blended with
indigenous varietals). It has hired Piper Heidsieck, the French Champagne House for
technical support in operations. It provides technical expertise for site selection,
choice in grape variety and the process of wine making. Due to its technology, enable
it to offer India’s most famous sparkling wine called “Omar Khayyam”. Marquise de
Pompadour’ brand of Indage was launched in 1986, while the famous ‘Chantilli’came
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out in the year 1989. The wine brand was the first to make wines that were ‘bottled in
India’, though the practice has now been discontinued. To expand globally, Chateau
Indage has acquired wineries in Australia and a distributor in the UK.
4.3.4.2 Sula Vineyards

Sula Vineyards has overtaken Chateau Indage to become India’s largest wine
producer. Sula Wines, launched in the year 2000, was the brainchild of Mr. Rajiv
Samant. It was the first marketing- savvy wine company in India and had initially
positioned itself in the premium segment, giving high quality and selling at high price.
However, with time, the wine company has entered all the price ranges and product
segments in the wine industry. Amongst the numerous wineries based in Maharashtra,
Sula is the one of the few worth writing about. This plan includes vineyards, wine
production and wine tourism. Sula is expanding its business at a faster rate. Its line of
products is also increasing with increasing demand in the Indian and overseas
markets. Sula is adding 1000 acres of new vines to its current 1200 acres. Sula has
adopted modern marketing which help it to attract mainstream middle class
customers. The capital raised will primarily be used to boost sales and marketing
efforts, and constructing a new ecologically friendly, state-of-the-art winery with a
capacity of four million liters in Maharashtra. “Sula aims to engage in sustainable
agriculture in the Nashik region and to support the local rural economy.
4.3.4.3 Grover Vineyards

Grover Vineyards, the Bangalore-based winery, was established in the year 1989.
Grover Vineyards is collaboration between Kanwal Grover and French wine maker
George Vasselle. The first wine under the wine brand came out in 1992 and since that
time, the company has endeavored to maintain its excellent quality. One its premier
red wine brands, La Reserve (a Cabernet Shiraz), was declared the best new world red
wine in the August 1995 issue of Decanter magazine, by Steven Spurrier. It also a
low-cost wine, known as Sante. The goal of these wineries is to offer French varieties
of wine in India. Grover’s offer signature red wine called “La Reserve” has received
an international reputation. This wine is developing with the help of flying winemaker
Michel Rolland. The company’s vineyards are spread over 400 acres. Its winery has
annual production capacity of 1.195 million bottles of 750 milliliters each. GVL sells
its products under the Grover brand.
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4.3.4.4 Four Seasons Vineyards
The lush undulating hills of the Western Ghats offer not just a breathtaking landscape
but are also endowed with perfect natural conditions to nurture fine varieties of wine
grapes. These hills are blessed with gravely soils that are rich in iron and have good
drainage. Not so warm sunny days and cool nights ensure a good temperature
variance – a must for quality wine making grapes. Set amidst this environment, near
the village of Rotti, in the Baramati district, is the Four Seasons Winery, where this
exquisite range of Four Seasons Wines is produced.
The Four Seasons Winery, with a planned capacity of one million cases, is built over
a plot of around fifty acres. An additional 300 acres is being planted around the
winery under long term contract with farmers from the village. All critical plants and
equipment, including crushing and bottling lines have been imported from Italy to
ensure hygiene and quality of international standards.
The winery is modeled on the French chateau style, housing fourteen suites. A large
party deck overlooking the vineyards that can accommodate a thousand people, a
swimming pool, a spa offering vino therapy and a wine tasting room are also in the
offing.
4.3.4.5 Vinsura Wines (Sankalp Winery Pvt. Ltd. )

Vinsura Vineyards is formed by a passionate band of horticulturists who brought a
dream from France to Vinchur Wine Park. Located in MIDC Vinchur, A central part
of fertile grape growing area in Nashik Valley, this is the first winery-Park is situated
on Mumbai-Aurangabad highway.
4.3.4.6 ND Wines
ND Wines, situated in the suburbs of Nashik, claims the distinction of being amongst
the five largest wineries in India. However, the winery sells majority of its produce to
Sula Wines. Only a small portion of the wines are sold under its own label. With
growing demand from the customers, crushing capacity was enhanced from 200 tons
to 1400 tons. ND Wines is geared up to fulfil the rising demand of today’s
international wine market.
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4.3.4.7 Chateau de’Ori Vineyards
The Chateau d’Oriestate is situated about 22 km from Nashik on the Nashik-Dindori
Road. This ultra-modern winery is an adaptation of the latest concept in winery
designs in Bordeaux, France. It is a huge circular building that can accommodate 72
large stainless steel tanks for fermentation and storage. The wine making process is
not restricted to just ‘gravity flow’ and some of the latest trends in oenology are being
used to create great quality wines. Besides the winery, it houses a laboratory, a 3000
bottles-an-hour bottling and labeling plant, a testing room with a state of the art
laboratory, a temperature controlled cellar accommodating over 500 French oak
barrels for fermentation and maturing of high end wines and an elaborate berries
sorting room.
Until the year 2008, the three largest Indian wine producers Sula, Indage and Grover
collectively occupied over 80% of the Indian wine market. This represented a high
level of concentration in the industry. Concentration in the industry changed in the
year 2009 and 2010, with Indage facing major issues and losing most of its market.
As a result, Sula and Grover have emerged as market leaders, further increasing the
concentration of the industry. And up to year 2013-14 Sula is the major player of the
industry with the almost 650% share of market with 2 production unit in Karnataka 1
production unit in Nasik and contract with 4 wineries in Nasik region to produced
wine for Sula. And purchase other unit’s (which suffer with marketing problem) extra
wine from Nasik and Sangli region.
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4.3.5 Selection of Wineries for Research Study
As specified in synopsis, researcher has selected 15 wineries from 76 wineries
working in Maharashtra. List of selected winery are as below:
Table No.:4.7: Rationale for Selection of Wineries for Research

A. From Nashik Region
1. M/s. Vinsura Winery Pvt. Ltd.
2. M/s Rajdhir Wines Pvt. Ltd.
3. M/s N.D. Wines Pvt. Ltd.
7 wineries
4. M/s Prathamesh Wines Pvt. Ltd.
5. M/s India Food Company Pvt. Ltd.
6. M/s A.D. Wines Pvt. Ltd.
7. M/s Red Wings Wines Pvt. Ltd.
B. From Pune Region
1. M/s Grapessy Wines & Beverages
3 wineries
2. M/s Neera Valley Grape wines Pvt. Ltd.
3. M/s Four Seasons Wines Ltd.
C. From Sangli Region
1. Grape Processing & Research Institute, Krishna wine park 2wineries
2. M/s Grape City Co-operative Institute Ltd.
D. From Rest of Maharashtra
1. M/s Aditya Winery Pvt. Ltd., Buldhana
3 wineries
2. M/s Sumaru Health Wines Pvt. Ltd., Latur
3. M/s Tade Winery Pvt. Ltd., Ahmednagar
Total Wineries 15 wineries
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4.3.6 Profile of selected Wineries
4.3.6.1 M/s. Vinsura Winery Pvt. Ltd.
 Director/ Owner of winery: Mr. Khadangale P.S.
 Address of winery: Vinchur Grape Wine Park,
A/P: Vinchur, Tal: Niphad, Dist: Nashik. 422 305
Tel: 02550-261751 (O)
9371158041 (M)
Fax No. 0253-2518161.
info@vinsura.com
 Establishment year: 2002
 Capacity: 6,25,000 liters
 Project Cost: 16.00 Crore
 Wine type produce: Red wine, White wine, Rose wine, Sparkling wine
 Total Brands: 12
 Vineyard: Own vineyard, around 80 hectors
 Winery employees: 17
 Winery outlet: Winery outlet available but without restaurant
 Packing: Glass bottle & bag in box (3 liter)
 Export:, export in 6 countries
 Conduct market research: Yes, every year
 Production marketing expenditure ratio: 70:30
 Highlights:
Vinsura vineyards is formed by 6 active directors a passionate band of horticulturist
who brought a dream from France, winery located in MIDC Vinchur (Vinchur Wine
Park) a central part of fertile grape growing area in Nashik Valley. This is the first
winery-Park situated on Mumbai-Aurangabad highway. Winery setup, layout and
wine are designed by French winemaker, so, visit to wine cave of winery is just
feeling as similar to visit to one of French winery. Sparkling wine of Vinsura is made
by traditional Champagne method. The Champagne region of France produces much
of the famous sparkling wines of the world. Vinsura and Sula are only two wineries in
Maharashtra, who manufactures sparkling wine by champagne method. Within small
time span, Vinsura has expanded its business, however currently facing financial
problem.
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Table No.: 4.8: Production & Sales of M/s Vinsura Winery Pvt. Ltd.
Year Production (in Liters) Sales (in Liters)
2001-02 45000 0
2002-03 65000 47000
2003-04 75000 60000
2004-05 117000 82000
2005-06 437000 385000
2006-07 465000 406000
2007-08 462000 416000
2008-09 425000 446000
2009-10 280000 304500
2010-11 214000 195900
2011-12 179000 102000
2012-13 154000 29600
Figure No.:4.10: Production & Sales of M/s Vinsura Winery Pvt. Ltd.
1000000
800000
600000
400000
200000
Production (in Liters) Sales (in Liters)
222
4.3.6.2 M/s Rajdhir Wines Pvt. Ltd.
 Director/ Owner of winery: Mr. Dadaji S. Patil (Owner)
 Address of winery: At : Bhilwad, Post : Kapsi, Tal : Deola,
Dist : Nashik-423 102.
Tel. :02592-236344/236433 (O)
0253-2310612(O)
9422271528 (M)
info@rajdheerwines.com
 Wine type produce: Red wine, White wine, Rose wine
 Total Brands: 9
 Vineyard: Own vineyard of 30 acres
 Winery outlet: Winery outlet not available
 Packing: Glass bottle only
 Export: Export in UK once ( May 2004)
 Conduct market research: No
 Highlights:
Shri Dadasaheb Patil, Founder and Chairman of Rajdheer Wines Pvt. Ltd.An
experienced vintner since 35 years cultivating table Grapes has started cultivation of
wine grape 15 years back at his own farmhouse. A Rajdheer vineyard is the first ISO
9001:2000 Quality Assurance Company in Nashik Valley Wines.Initially began with
very small production capacity of 60,000 liters per annum. Now winery extended it to
4,60,000 liter per annum.
Rajdheer vineyards is leading wine manufacturer from Nashik Valley Wines in earlier
days. Rajdheer vineyard’s first brand ‘Le vino Red Wine’ was exported to UK in the
month of May 2004 and became first exporter amongst all-young wine manufacturer
from Nashik Valley Wines. Also, winery captured large market in South India at the
starting, however; due to lack of entrepreneurship and rising competition in wine
industry, Rajdheer winery lost its market. Due to ample stock of previous year, grape
223
crashing was stopped for 2-3 years in between. Hence to cover the lost financial
condition, Rajdheer has sold its wine stock to Sula winery. Also, Rajdheer found a
new way to convert old wine into Bio Wine. Shara Bio Wine, developed by Rajdheer
is “Health Functional Wine” and enriched with Bio Alkaloids processed with Ancient
wonder herbs like Alovera, Aswaghanda, Arjuna, Tulsi, Brahmi, Phylanthus etc.
Table No.:4.9: Production &Sales of M/s Rajdheer Wines Pvt. Ltd.

2002-03 18000 0
2003-04 22000 19500
2004-05 32000 27500
2005-06 77000 49000
2006-07 87000 105400
2007-08 110000 49300
2008-09 200000 31600
2009-10 0 23500
2010-11 0 17000
2011-12 12000 220000
2012-13 180000 160000
Figure No.:4:11: Production &Sales of M/s Rajdheer Wines Pvt. Ltd.
1000000
800000
600000
400000
200000
224
4.3.6.3 M/s. ND Wines Private Limited
 Director/ Owner of winery:Mr. Ashok Gaikwad(Owner)
 Adders of winery: A/P: Khedgaon, Tal :Dindori, Dist : Nashik.
Tel : 02557-235201/2/3(W),
9890033001(M) , 9890382841 (M)
Fax.No.02557-235201.
info@ndwines.com
 Wine type produce: Red wine, White wine
 Total Brands: 7 brands
 Vineyard: Yes
 Winery outlet: Winery outlet available but without restaurant
 Yearly turnover of outlet:28 to 30 lacks per year
 Export: No
 Conduct market research: Yes, two times
 Highlights:
ND Wines, situated in the suburbs of Nashik, claims the distinction of being amongst
the five largest wineries in India. Mr. Ashok Gaikwad and his friends together
established ND Grapes Pvt. Ltd. In the year 1993; ND Grapes started exporting table
grapes to various countries all over the world. ND Grapes is the first company to get
the distinction of single largest exporter of India. After enjoying huge success, ND
Grapes have ventured into wine making under the banner of ND Wines Pvt. Ltd. The
beautifully landscaped winery is located on the lake side and surrounded by lush
green vineyard. At the winery, the time tested art of wine making has gained greater
height under the expert eye of the famous French wine master Mr. Jean Manual
Jacquinot. The state of the art winery is well equipped with all imported machinery
made by the renowned French companies. ND Wines is geared up to fulfill the rising
demand o today’s international wine making art. But winery cannot capture expected
225
market However, the winery sells majority of its produce to Sula Wines. Only a small
portion of the wines are sold under its own label.
Table No.:4.10: Production &Sales of M/s ND Wines Pvt. Ltd.

2002-03 0 0
2003-04 100000 0
2004-05 120000 41400
2005-06 111000 39000
2006-07 65000 215000
2007-08 400000 409000
2008-09 463000 466200
2009-10 558000 562300
2010-11 592000 595000
2011-12 756000 756200
2012-13 797300 774800
Figure No.:4.12:Production & Sales of M/s ND Wines Pvt. Ltd.
1000000
800000
600000
400000
200000
226
4.3.6.4 M/s. Prathamesh Wines Pvt. Ltd
 Director/ Owner of winery:Mr. Mahendra M. Bhamre, (owner)
 Adders of winery: A/P : Pimpaldar,
Tal :Satana, Dist : Nashik.
Tel.: 02555-2341265(O)
02555-2313140 I, 9422755105 (M)
prathaameshwine@rediffmail.com
 Vineyard: no
 Winery outlet: Winery outlet available, with restaurant
 Yearly turnover of outlet: 3 to 3.5 lacks per year
 Packing: Glass bottle, pet bottle, pouch
 Export: Yes, once to UK
 Highlights:
M/s. Prathamesh Wines Pvt. Ltd was started in year 2004 under the able guidance and
sharp business acumen of Mr. Bhamre. The company has grown up to 2007-08 and
became a leader in this line of business. Winery’s wines mostly popular in South
India and company grows its market especially in this side. However, due to world
recession of 2009, 26/11 Mumbai terrorist attack, and rising competition, wine
industry was in trouble and Prathmesh has also lost its market. Prathmesh winery
suffered for a year thereafter and took decision to provide unit to Sula winery Ltd. On
rental basis. Simultaneously, winery also focused on winery outlet and restaurant.
Winery also sale raw wine at outlet so that customer can enjoy the wine in low cost.
(Raw wine means cheap, non-filtered and loose wine sold in bulk.)
Facility of Prathmesh winery is designed very thoughtfully so as to reduce utility cost.
Fermentation tank is located beneath the ground (underground floor) so as to reduce
227
the temperature naturally (under natural conditions, the temperature at underground
area is lesser by about 12oC). Crusher is placed on the upper floor so as to transfer
juice into the fermenter by means of gravitational force. At winery, equipments are
local as well as imported.
Table No.: 4.11: Production &Sales of M/s Prathamesh Wines Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 33,700 0
2005-06 0 0
2006-07 8,500 25,000
2007-08 23,000 22,000
2008-09 17,000 85,000
2009-10 100,000 36,000
2010-11 700,000 187,000
2011-12 29,000 204,000
2012-13 200,000 200,000
Figure No.:4.13: Production & Sales of M/s Prathamesh Wines Pvt. Ltd.
1,000,000
800,000
600,000
400,000
200,000
228
4.3.6.5 M/s. India Food Company Pvt. Ltd.
 Director/ Owner of winery:Mr. GovindHolani, GM,
 Adders of winery: Plot No. CU-56 & 57, Godavari Wine Park, MIDC,
Vinchur, Nashik-422 305.
Tel.: 022-66793000,
66780131 (O)
9322122985 (M)
govind.holani@rediffmail.com
 Wine type produce: Red wine, White wine, Rose wine, Sparkling wine
 Vineyard: No
 Winery outlet: No winery outlet
 Export: Yes, in Europe
 Conduct market research: yes
 Highlights:
The Sarda family, headed by Dr Pradeep Sarda, has various business interests in the
state of Maharashtra, including a paper mill and an international school in Mumbai. In
2006 DrSarda and his son Mr. Parag decided to explore the possibility of building a
winery. They enlisted David Rowe’s assistance right from the planning stage. Grapes
are sourced through long-term contracts with growers. This arrangement requires
considerable time, trust, and a willingness to accept honest feedback in order for
quality grapes to be consistently delivered to the press.
Originally marketed under the brand name ‘Vin &Vouloir’, the wines which are
widely available throughout Maharashtra, are now sold with the brand name ‘V & V’.
They are also available in continental Europe under the ‘Surahi’ brand. In India
company targets only market of Maharashtra and save marketing expenses of sale
229
wine in other state. Majority of wine produced is sold in Super market and shopping
mall. Company has professional approach for marketing.
Table No.:4.12:Production &Sales of M/s India Food Co. Pvt. Ltd.

2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 20000 0
2007-08 25000 28000
2008-09 40000 25000
2009-10 35000 30500
2010-11 47000 52800
2011-12 80000 69500
2012-13 135000 102000
Figure No.:4.14: Production &Sales of M/s India Food Co. Pvt. Ltd.
1000000
800000
600000
400000
200000
230
4.3.6.6 M/s A.D. Wines Pvt. Ltd.
 Director/ Owner of winery: Mr. Suresh E. Deshmukh (Owner)
 Adders of winery: Gat No. 662/1/2, Behind Saptashrungi Petrol Pump,
Nashik-Kalwan Road, Dindori, Tal.Dindori, Dist. Nashik.
Tal. : 0253-6416288 (W), 2557-222931 (O)
9422769775 (M)
adwines@rediffmail.com
 Wine type produce: Red wine, White wine, Rose wine.
 Vineyard: Yes, 70 acre
 Winery outlet: Yes, 3 outlets, 1 winery outlet with restaurant
 Yearly turnover of outlet: 7 to 8 lacs
 Export: No
 Production marketing expenditure ratio: 60:40 ratio
 Highlights:
M/s A. D. wines Pvt. Ltd. Is also known as Deshmukh vineyards. Mr. Suresh
Deshmukh a dynamic horticulturist doing many and varied agricultural experiment in
his farm is started winery with the help of family and friends in his farm in 2007.
Winery started with 1, 00,000 liters capacity and expended up to 2, 50,000 liters.
From the beginning, company’s marketing policy is different from other. At the
beginning, when production capacity of winery was less, winery started 3 outlets
(Daman, Nashik and at winery outlet). But after increase in manufacturing capacity,
A.D. winery has given facility to ‘Pause Wines Pvt. Ltd.’ On lease basis for wine
manufacturing. ‘Pause Wines Pvt. Ltd.’ Doesn’t have its own manufacturing unit
being a marketing company. Pause is one of the important players in wine marketing
and distribution in India. Apart from this contract business, A. D. wines also produce
wine for marketing under its own label.
231
Table No.:4.13: Production &Sales of M/s A. D. Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 55,000 0
2007-08 19,000 16,200
2008-09 1,11,000 48,400
2009-10 0 49,100
2010-11 26,200 40,500
2011-12 86,700 49,300
2012-13 20,000 41,900
Figure No.:4.15: Production & Sales of M/s A. D. Pvt. Ltd.
1,000,000
800,000
600,000
400,000
200,000
4.3.6.7 M/s. Red Wing Wines Pvt. Ltd.

 Director/ Owner of winery: Mr. AshutoshPawar (Director)
 Adders of winery: Gat No. 33, ArkalePhata,
A/P :Talegaon (Dindori),
Tal. Dindori, Dist. Nashik.
232
9923001213 (M)
mail@redwingwines.com
 Wine type produce: Red wine, White wine.
 Vineyard: Yes
 Winery outlet: Yes, with restaurant
 Yearly turnover of outlet: 7 to 7.50 lacks
 Export: No
 Highlights:
‘M/s Red Wing Wines Pvt. Ltd.’ Is conceived by a group of entrepreneurs from
various fields with only one common element – a strong passion for wine making.
Table No.:4.14: Production &Sales of M/s Red Wings wines Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 0 0
2008-09 21000 0
2009-10 24000 19000
2010-11 38000 26700
2011-12 55000 45000
2012-13 91500 79600
233
Each of the directors being successful industrialists actually grew up from agriculture
background, with many of their forefathers being grape growers of finest quality. The
wine is prepared and handled by one of the most renowned wine maker from Italy Mr.
Andrea Valeninuzzi, with over two decades of experience in Quality wine making.
Figure No.:4.16: Production &Sales of M/s Red Wings wines Pvt. Ltd.
1000000
800000
600000
400000
200000
4.3.6.8 . M/s. Grapessy Wines & Beverages

 Director/ Owner of winery: Mr. Abhijit S. Rokde, (Director)
 Adders of winery: Survey No. 35/2, A/P: Agar, Tal: Junner, Dist: Pune.
Tel: 02132-223947, 224953 (W)
02132-222544 (O)
9423011236 (M)
Fax 02132-222109
grapessywines_beverages@yahoo.com
 Capacity:75,000 liters
 Vineyard: Yes
234
 Winery outlet: No
 Export: No
 Highlights:
M/s Grapessy Wines and Beverages ltd.Is started in year 2004 and involved in
manufacturing, importing & supplying a wide array of wines and beverages. Mentor
of winery is Mr. AbhijitRokade, have thorough knowledge of the industry and the
wine processing, Under his visionary guidance, winery developed his expertise in the
processing of the wines that is not only used for consumption in hotels & restaurants
but are also used as additives in delicacies as well. Winery enhanced his distributing
network all over India especially in Maharashtra and now wishes to spread his wings
into the global arena. Winery sales his wine totally through traditional marketing
chain i.e. Manufacturer to distributor, distributor to retailer, retailer to customer. Some
of company’s valuable clients are M/s Mohan Brothers and M/s KSN Irani Ltd.,
which is well-known distributor in alcohol beverages supply market.
Table No.:4.15: Production &Sales of M/s GrapessyWines & Beverages

Year Production ( in Liters) Sales (in Liters)
2002-03 0 0
2004-05 18422 0
2005-06 21750 21174
2006-07 35000 41662
2007-08 18530 30929
2008-09 17900 25977
2009-10 24250 35800
2010-11 9250 21380
2011-12 0 16330
2012-13 3000 15950
235
Figure No.:4.17:Production &Sales of M/s GrapessyWines &Beverages
1000000
800000
600000
400000
200000
Production ( in Liters) Sales (in Liters)
4.3.6.9 M/s. Neera Valley Grape Wines Pvt. Ltd.

 Director/ Owner of winery: Mr. S. S. Gore, (Director)
 Adders of winery: Plot No. F-5, MIDC, A/P & Tal: Baramati, Dist: Pune.
Tel: 02112-243686 (W), 9422342297 (M) 9822197344 (M)
niravalleywines@gmail.com
 Capacity:17,00,000 liters
 Vineyard: Yes
 Export: No
 Conduct market research: Yes
 Highlights:
M/s. Neera Valley Grape Wines, named after the famous Neera Valley River, which
flows through this equally famous wine-making region, based in Baramatireported as
236
being the fourth largest producer of bulk wine in India, is formed by four friends, B.R.
Shende, S.S Gore, J.P Magade, R.A Padule.Nira Valley Grape Wines expanded their
capacity from 5 lakh liters per annum to 17 lakh liters. Of this production, most of
part being sold as bulk wine and the rest is being sold under the company’s own
brands name ‘Celesta’. The process is monitored by a French winemaker and further
assisted by an Indian winemaker. The vineyards of Nira Valley Grape Wines are
spread over an area of 100 hectares, located within 20 km of the winery at Baramati.
Grapes are also sourced from contract farmers. M/s Nira Valley Grape Wines Pvt.
Ltd. Is known as a successful bulk wine producer in wine industry.
Table No.:4.16: Production & Sales of M/s Neera Valley Wines Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 155000 416000
2007-08 1168000 328673
2008-09 580111 712796
2009-10 0 79391
2010-11 249341 238391
2011-12 0 292493
2012-13 904222 499747
Figure No.:4.18: Production & Sales of M/s Neera Valley Wines Pvt. Ltd
1200000
1000000
800000
600000
400000
200000
237
4.3.6.10 M/s. Four Seasons Wines Ltd.
 Director/ Owner of winery: Shri. AbhayKawadkar, (Vice President)
 Adders of winery: Gat No.263, Tal. Daund, Dist. Pune.
9900123414 (M), 9225644981 (M)
abhay@ubmail.com
 Vineyard: Yes
 Winery outlet: Yes, with restaurant
 Yearly turnover of outlet: Around 80 lacks
 Export: No
 Conduct market research: Yes, every year
 Highlights:
M/s.Four Seasons Wines Ltd.is the branch of UB group. United Spirit (UB) isone of
the leading global players in spirits with a portfolio of more than 140 brands, of which
several are global iconic brands across flavors. The company has twenty-one brands
in its portfolio that sell more than a million cases each year, of which five brands each
sell more than 10 million cases annually The Company enjoys a strong 59% market
share for its first line brands in India. United Spirits’ brands have won the most
prestigious awards for flavors, ranging from Mondial to International Wine and Spirit
Competition (IWSC) to International Taste & Quality Institute (ITQI); 184 awards &
certificates.
Four Seasons winery located to the lush undulating hills of the Western Ghats offer
not just a breathtaking landscape but are also endowed with perfect natural conditions
to nurture fine varieties of wine grapes. Set amidst this environment, near the village
of Rotti, in the Baramati district, is the Four Seasons Winery, where this exquisite
range of Four Seasons Wines is produced. The Winery, with a planned capacity of
238
one million cases, is built over a plot of around fifty acres. An additional 300 acres is
being planted around the winery under long term contract with farmers from the
village. All critical plants and equipment, including crushing and bottling lines have
been imported from Italy to ensure hygiene and quality of international standards.
The winery is modeled on the French chateau style, housing fourteen suites. A large
party deck overlooking the vineyards that can accommodate a thousand people, a
swimming pool, a spa offering ‘Vino therapy’ and a wine tasting room are also in the
offing.
Table No.:4.17: Production & sales of M/s Four Seasons Wines Ltd.
2002-03 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 0 0
2008-09 0 122202
2009-10 616707 424429
2010-11 181621 387255
2011-12 68941 607195
2012-13 189709 919925
Figure No.:4.19: Production &Sales of M/s Four Seasons Wines Ltd.
1000000
800000
600000
400000
200000
239
4.3.6.11 Grape Processing and Research Institute, Palus
 Director/ Owner of winery: Dr. D. P. Nerkar, Director
 Adders of winery: Krishna Wine Park, A/P: Sandgewadi, Tal: Palus, Dist:
Sangli-416 310.
Tel: 02346-229006 (O), 9423270985 (M)
dpnerkar@rediffmail.com
 Vineyard: Yes
 Winery outlet: Yes. Without restaurant
 Yearly turnover of outlet: 30 to 40 thousand per year
 Export: No
 Conduct market research: Yes.
 Highlights:
Grape Processing and Research Institute (GRPI), Palus is proceedings by Dr. D. P.
Nerkar, (Director) and Mr. P. B. Rajmane, (Incharge) this institute co-labret with
BharatiVidyapeeth Deemed University Pune. And the institute have started a one year
“Post Graduate Diploma in Wine Technology”, having capacity 30 students per batch.
GRPI’s mission is educating India’s winemakers of tomorrow while producing the
highest quality wines of international standards.This institute has three parts, Winery,
Vineyard, and Institute. Winery have a capacity of 2,30,000 lit per annum. In
vineyard have different varieties of wine grape for Red wine: - Shiraz, Cabernet
Sauvignon, Zinfandel, Merlot, and Pusanavrang. And for White wine: - Chenin Blanc,
Sauvignon Blanc, Pinot Blanc, Chardonnay. Institute has separate nursery division in
which all varieties are available along with root stock.
GRPI have a “mother unit”, which provides machines, technology, laboratory,
manpower, winemaker as common facilities to the small wine manufacturers. The
240
winery and vineyard is not as commercial, but is useful to students and farmers, or
may say that this winery is like to a demonstration unit. Institute sale out his wine on
no profit no loss basis to FL 1 license holder (Fl 1- permit for purchase of liquor
directly from the distilleries and sale to retailer or hotels and bar owner)
Table No.:4.18: Production & Sales of Grape Processing and Research Institute
Year Production ( in Liters) Sales ( in Liters)
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 113050 0
2006-07 0 3048
2007-08 36750 7949
2008-09 38500 34740
2009-10 33400 7027
2010-11 45000 5900
2011-12 36100 7504
2012-13 14000 23600
Table No.:4.20: Production &Sales of Grape Processing and Research Institute.
1000000
800000
600000
400000
200000
Production ( in Liters) Sales ( in Liters)
241
4.3.6.12 M/s. Grape City Winery Co-operative Institute Ltd.
 Director/ Owner of winery: Mr. KishorUnawane, Chairman
 Adders of winery: A/P: SavlajTal :Tasgaon, Dist.: Sangli.
9890771999, 9970210999 (M)
grapecity2004@gmail.com
 Vineyard: Yes
 Yearly turnover of outlet: 30 to 40 thousand per year
 Export: No
 Highlights:
Located on the banks of the Agrana River in the hills and village of Savlaj in the
Sangliregion.Grape City Winery is currently producing exceptional wines under three
brands for the U.K Market, as Elixir, Sakhar and VintiageIndiaki.
The Elixir brand boasts superior quality, oak wood matured wine with an ornate dry
taste. Sakhar, with its harmonious dry and fruity balance has become a prominent
brand in the market. The VintiageIndiaki brand owns a fresh and lively taste for its
pleasers. Each brand embraces a different dimension of wine appeasement for its
drinkers.
Grape City Winery is the biggest currently in India and proud to be the largest
exporter of wine in the country. The winery currently holds tie-ups with leading
retailers such as Tesco and Ada. Tie-ups also exist with distinguished hotel groups
such as the Sheraton Group of Hotels, Hilton Hotels and Starwood Group of Hotels.
242
The people at the winery believe that it is also important to give back to the society
and help those that are in need of help. From every bottle sold, 50% are donated to
underprivileged children in the world.
Table No.:4.19: Production & Sales of M/s Grape City Winery Ltd.
Year Production ( in Liters) Sales ( in Liters)
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 160000 0
2008-09 113500 11500
2009-10 63382 4400
2010-11 14800 23280
2011-12 71000 65000
2012-13 6760 20000
Figure No.: 4.21: Production & Sales of M/s Grape City Winery Ltd.
1000000
800000
600000
400000
200000
Production ( in Liters) Sales ( in Liters)
243
4.3.6.13 M/s. Aditya Winery Pvt. Ltd.
 Director/ Owner of winery:Mr.DilipJaiswal (Owner)
 Adders of winery: Gat No. 138, NehekarPhata, A/P: Bhankhed, Tal: Chikhali,
Dist: Buldhana.
Tel: 07264-243187 (O), 9881387999 (M)
adityawineries@rediffmail.com
 Vineyard: No
 Winery outlet: Yes
 Annual Turnover of outlet: 2-3 lacks
 Export: No
 Highlights:
Mr.DilipJaiswal and his friend Ashok Sharma established Aditya Winery in year of
2007. Aditya Winery started exporting table wines in various states in all over the
India.
Winery is located at MehkarPhata, Chikhali Dist. Buldana in the world famous Ajanta
Valley of Maharashtra. Aditya Winery Pvt. Ltd. Is the only functioning winery in the
whole of VidharbhaRegion. Winery distributes wine only through traditional
marketing chain (Manufacturer  DistributorRetailerCustomers). Aditya winery
has not established its marketing chain and unable to sale the product in the market.
This lapse in the strategy has left Aditya winery out of competition amongst wineries
in Maharashtra. Although in the recent years, Aditya winery has started marketing
division to brand the products amongst the customers, however, they will have to
struggle a lot in the nearest future.
244
Table No.:4.20: Production & Sales of M/s Aditya Winery Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 30,000 1,000
2008-09 15,000 7,460
2009-10 0 8,000
2010-11 18,000 12,000
2011-12 10,000 9,250
2012-13 0 9,700
Figure No.:4.22: Production & Sales of M/s Aditya Winery Pvt. Ltd.
1000000
800000
600000
400000
200000
4.3.6.14 M/s Sumaru Health Wines Pvt. Ltd.

 Director/ Owner of winery:Mr. J. DMamadge., Director
 Adders of winery: Survey No. 177,Sarola Road, Near VivekanandChowk,
Tal. & Dist. Latur.
Mo. No. 9422242018, 9011092777
245
 Project Cost: 4 Crore
 Vineyard: Yes
 Export: No
 Conduct market research: Yes
 Highlights:
Mr. J. D. Mamadge a young and studious manager in cooperative sector started M/s
Sumaru Health wines Pvt. Ltd. With his friends in 2010 in Latur district. Winery start
with own vineyard and 2, 00,000 liters plant capacity. In first crashing year winery
produces 20,000 liters wine and in second crushing year winery produces only 7000
liters wine. Due to heavy competition and previous year leftover stock M/s Sumaru
winery has stopped grape crushing quire for long period (almost 2 years).
M/s Sumaru’s health wine is sold in Maharashtra state only.
Table No.:4.21: Production & Sales of M/s Sumaru Health Wines Pvt. Ltd.
2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 0 0
2008-09 0 0
2009-10 20,000 5,500
2010-11 7,000 1,000
2011-12 0 1,500
2012-13 0 1,000
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Figure No.:4.23: Production & Sales of M/s Sumaru Health Wines Pvt. Ltd
1000000
800000
600000
400000
200000
4.3.6.15 M/s. Tade Winery

 Director/ Owner of winery: Mr. Chandrnandan S. Tade, (Director)
 Adders of winery: Bazar Tal, Tal-Shrigonda, Dist- Ahmednagar.
Mo. No. 7588092246, 94197330
 Capacity: 50,000 liters
 Project Cost: 25 lacks
 Vineyard: Yes
 Winery outlet: Yes
 Export: No
 Highlights:
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Mr. Tade started a small winery with 50,000 liters manufacturing capacity as a family
business in 2011 and produced 20,000 liter wine for two consecutive financial year
but as we discussed, due to decline period of wine industry and rising competition,
M/s Tade winery is also failed to capture market and wine was stocked. Hence, M/s
Tade winery changed decision of making traditional wine and focused to make
‘Brandy’, an alcoholic beverage from grape wine. Mr. Tade has submitted his
‘making brandy from wine’ proposal to authorized Government offices and
permission from Government authority was sought for Brandy manufacturing.
Table No.:4.22: Production &Sales of M/s TadeWinery Pvt. Ltd.

2002-03 0 0
2003-04 0 0
2004-05 0 0
2005-06 0 0
2006-07 0 0
2007-08 0 0
2008-09 0 0
2009-10 0 0
2010-11 20,000 5,000
2011-12 20,000 1,000
2012-13 0 0
(Source: Field Visit)
Figure No.:4.24: Production & Sales of M/s Tade Winery Pvt. Ltd.
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1000000
800000
600000
400000
200000
4.4 Viticulture
4.4.1 Demand of Wine Grapes
There are 3 thousand plus type of wine grapes used for wine making in all around the
world. Cultivation of wine grapes in India is comparatively new branch in
horticulture. For Red wine making cultivation of wine grape verity is Cabernet
Sauvignon, Merlot, Shiraz, Zinfandel, Pinot Noir, Cabernet Franc, Cinsaut,
Pinotage and for White wine making, Chardonnay, Chenin Blanc, Sauvignon Blanc
is cultivated.
Table No.:4.23: Percentage of Grapes Verity Used for Wine Making

Grape Variety Quantity
Cabernet Sauvignon 38 %
Chenin Blanc 17 %
Shiraz 11 %
Sauvignon Blanc 9%
Zinfandel 7%
Chardonnay 5%
Merlot 4%
Other verity 9%
Figure No.:4.25: Grapes Verities Used for Wine Making
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Other verity, 9%
Merlot, 4%
Chardonnay, 5%
Cabernet
Zinfandel, 7%
Sauvignon, 38%
Sauvignon Blanc
, 9%
Chenin Blanc, 17%

Shiraz, 11%
As per the data collected from 15 wineries, Red wine making from Cabernet
Sauvignon, Shiraz, Zinfandel, and White wine making from Chenin Blanc, Sauvignon
Blanc verity is more popular in India. As per marketing rule ‘Supply depends on
Demand’ naturally Indian winemakers made wine mostly from these popular verities.
As per the above, Cabernet Sauvignon, Chenin Blanc, Shiraz, Sauvignon Blanc,
Zinfandel is more demandable wine grape variety.
During site visit, researcher also noted that, Cabernet Sauvignon, Chenin Blanc,
Shiraz, Sauvignon Blanc is more cultivated wine grape verity in Maharashtra state.
At global level, demand of wine manufactured from organic grapes is increasing;
hence wineries need to explore this demand in the coming future.
4.4.2 Grape Cultivation Area in Maharashtra

Maharashtra Industrial Development Corporation (MIDC) for wineries has been
found growing since last decade because of continuous support for invention of new
grape varieties by ‘Grape Research Institute, Pune’, ‘Mahatma Phule Agricultural
University, Rahuri’, and ‘Maharashtra state grape grower association’ etc.
Before year 2001, there was only one winery, M/s Chateau Indage, Narayangaon,
Pune was in operation and owning a vineyard of about 300 acres. This has restricted
the development of new vineyards in other parts of Maharashtra since there was no
demand of wine grapes. However situation has changed over the period of time and
because of continuous efforts by some farmers, cultivation of wine grapes has been
initiated in other parts of Maharashtra. Since then, until year 2009, there has been new
250
300 to 400 acres of vineyards added and about 9000 acres of total wine yard area was
available. Below table of wine grape cultivation area shows that Nashik area has
highest number of vineyard area followed by Pune, Sangli, Solapur, Latur, Buldhana,
Usmanabad, Ahmednagar and Satara.
However, the situation was not comfortable after year 2009 and because of poor
response to the Indian wine and decrease in government support, vineyard area found
to be decrease. Based on the review by the researcher, it was observed that up till year
2012, vineyards have been destroyed by almost 50% in Nasik region and by 25% in
other areas of Maharashtra. This is indeed not a good sign for the growth of wine
industry and in future, need to focus more on promotion of new vineyard.
Table No.:4.24: Wine Grape Cultivation Area in Maharashtra

Area Year 2009 (hectare) Year 2012 (hectare)
Nashik 5000 2500
Pune 1800 1100
Sangli 700 500
Solapur 450 250
Latur 350 150
Buldhana 300 200
Usmanabad 250 200
Ahmednagar 100 100
Satara 50 Nil
Total 9000 5000
Figure No.:4.26: Wine Grape Cultivation Area in Maharashtra
251
6000
5000
4000
3000
2000
1000
0
Year 2009 ( In hectare) Year 2012 (In hectare)
4.4.3 Availability of Wine Grapes

As we have seen before in the discussion, cultivation of wine grape area is reduced
after year 2009, however, in recent days (after year 2012) there is rise in wine grape
cultivation area. But, some wineries are still facing the problem of availability of wine
grapes. Most of the wineries do not get the wine grapes from their own region and are
depend on grapes produced by vineyards located in other region. This leads to
addition of transportation cost and ultimately impact on the cost of wine as well.
Especially, most of Nashik region wineries take grapes from Buldhana, Solapur, Pune
(mostly Baramati), Usmanabad and Latur district. Pune region’s wineries take grapes
from home district, Ahmednagar and Sangli district. Sangli region’s wineries have
sufficient grapes of home district because of closeout of most of the wineries.
Table No.:4.25: Supply of Wine Grapes

Wine Grapes Availability No. of wineries
In home district 5
Home district + 1 district 3
Home district + 2 districts 4
Home district + 3 districts 3
Large production capacity and well established wineries in market don’t have
problem of grape availability since these wineries have made ‘Grape Agreement’ or
‘Contract Farming’ for 80 to 90% of total required quantity from farmer and they
252
additionally have own vineyards. Small size wineries have not suffered for grape
shortage because there demand is very less and it’s getting fulfilled by the grape
cultivated in their home district. As we see in above table, 5 wineries use the grapes
available in home district. Out of these 5 wineries, 3 wineries are small sized and their
production capacity is below 30,000 liters wine per year. One large size winery has
done ‘Contract Farming’ for 200 acres with nearby farmers. But other 10 medium size
wineries have to import the wine grapes from other region/ district.
4.4.4 Owning Vineyard by Wineries

Wine quality predominantly depends on grape quality and its contents. Quality of
wine is carried over from grape juice into wine and is mainly depends on the quality
of soil in terms of minerals. Grape juice contains sugars, organic acids, phenolics,
aroma compounds, vitamins, minerals and nitrogen compounds. If winery has its own
vineyard then it can control quality of grapes with the help of winemaker. Another
benefit of own vineyards is that, it reduces the cost of raw material (wine grape) and
increase independency of winery and also reduces the transportation cost of grapes.
But some wineries don’t have their own vineyard and depends on farmers for grape
supply. If wineries have to depend on farmers for grapes, then ‘Contract Farming’ is
good option for both.
Also, winemakers having their own farming / agricultural land can have their own
vineyard; however, non-land owners have best option of contract farming without
investment.
Figure No.:4.27:Ownership of Vineyards
253
No own vineyards
27%
Own vineyard
73%
During the field survey, researcher observed that, most of the wineries maintain their
own vineyard. Out of 15 wineries, 11 wineries found to own the vineyard of size
ranging from 30 – 100 acres. However, not all 11 wineries solely depend on their own
vineyard. Out of above mentioned 11 wineries, only 3 small wineries are using grapes
cultivated in their own vineyard since their demand is less and demand is fulfilled by
their inhouse grapes. Remaining 8 wineries use own grapes as well as grapes from
other vineyards/ farmers.
4.4.5 Contract Farming

In Maharashtra, currently it is seen that those grape growers who does not have their
own winery are supplying comfortably to old and recently developed wineries.
Contract Farming is not much popular concept so far, however, wine manufacturer
and grape growers are doing rate contract. As per the rate contract, since the
beginning, the rate of grapes is decided (generally Rs.40-50 per kg) based on the type
and quality of grape. This contract is for 3-5 years. After contract, at appropriate
time, wine manufacturer cuts the grapes from the vineyard after proper maturation of
grapes and quality norms. 50% of amount is paid on the day of grape supply to the
winery and remaining 50% is paid after wine is ready. One very important point here
is that, both, grape grower and wine manufacturer are benefited because grape grower
is sure about his income and wine manufacturer is sure about the wine grapes as per
the expectation of grape quality. Furthermore, wine manufacturer need not to have its
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own vineyard so cost for the same is minimized. This process is also benefited in
other way since there is no broker in between and profit is shared within both.
Table No.:4.26: Contract Farming

Particulars No. of wineries
Contract done 4
Contract not done 8
Use own grape 3
Based on the field survey, researcher observed that, out of 15 wineries, 3 wineries
crush their own grapes only, which means that remaining 12 wineries can opt for
grape agreement option. In actual, only 4 wineries out of 12 have done grape
agreement. These 4 wineries also do not get all grapes through contract farming.
Following are the details.
 One winery do for 20-30% of total grape requirement
 One winery do for 60% of total grape requirement
 One winery do for 90% of total grape requirement
 And one winery do GA for per year as per requirement
Remaining 8 wineries has not done any contract farming.
4.5 Production of Wine

4.5.1 Plant Machinery & Equipments
At winery plant, Destemmer& Crusher, PneumaticPresser, Fermentation tank, Pulp
pumps, Automatic Bottle Filling Machine are key machineries used for wine making.
Most of the Indian wineries purchase Destemmer& Crusher, PneumaticPresserand
Automatic Bottle Filling Machine from European countries and Fermentation tank,
Pulp pumps purchased from India. Pulp pumps are easily available at lower cost in
India. Fermentation tank is very big in size, so need to pay vary heavy import duty on
it and winery need many fermentation tank of different size so it’s more expensive for
wineries and hence most of Indian wineries purchase fermentation tank from Indian
manufacturer.
Table No.:4.27: Use of Local v/s Imported Machineries
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Particulars No. of wineries
Use imported machinery (without fermentation tank& pumps) 12 wineries
Use Indian machineries only 3 wineries
Figure No.:4.28: Use of Local v/s Imported Machineries
India, 3
France, 7
Italy, 5
As we can see in above graph, only 3 wineries use Indian made Destemmer&
Crusher, Pneumatic Presser, Automatic bottle filling machine. In these three wineries,
1 has purchased Destemmer& Crusher, Pneumatic Presser during plant capacity
expansion from Italy because of poor performance of Indian made machineries. Other
2 wineries’ production capacity is small hence don’t have financial budget for
imported machinery.
Local made machinery found to be less efficient compared to imported machines as
evidenced prominently during survey of wineries. Although cost is negligible for local
made machineries compared to imported, however most of the farmers believed that
the cost of machineries can be covered by increase in the productivity and quality of
wine produced from imported machines.
Another reason for high efficiency of imported machines is that Italy and France are
traditionally wine producing countries and has developed the machines based on the
need and invention over the period of time.
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4.5.2 Wine Types
All the 15 wineries make red and white wine. Red wine is more popular because of its
taste like a grape juice, sweet tinge, health benefits and classic touch. All the 15
wineries make Red wine from different grape varieties.
Table No.:4.28: Type of Wine Manufactured

Wine type %
Red wine 54
White wine 39
Rose wine 5
Sparkling wine 2
Second most preferred wine is White wine. All 15 wineries make White wine. Rose
wine is comparatively new for Indian consumer; and it’s not much popular because of
its astringent test. 10 wineries make Rose wine in small quantity.
‘Sparkling’ wine is also known as ‘Champagne’. There are 2 methods of making
sparkling wine, viz. first Champagne method and another wine added with CO2
method. Champagne method is introduced to world by ‘Champagne region of France’
hence, it is known as ‘Champagne’. It is bubbly white wine in appearance and is made
from ‘Thomson’ table grapes and pink sparkling wine from rose wine. Champagne
making is a complex and time consuming method (takes about 2 or more than 2
years). For Champagne making, winery has imported new machineries from France.
Cost range of one bottle starts from Rs. 1000. In India, Champagne drinking is
perceived to be proud thing in rich class so it is more popular in upper class society.
Another method of sparkling wine making is by adding directly CO2 in fine wine
during bottling process. It can be added in Red, white & rose wine. Amongst all 15
wineries, only 3 wineries make sparkling wine. 2 well known wineries make sparkling
wine by Champagne method and 1 winery make by adding CO2 in fine wine.
4.5.3 Wine Maturation
257
It is said that ‘making good wine is a skill, fine wine is an art’. Hence, it becomes very
important and essential that during manufacturing, wine needs to undergo proper
maturation so as to enhance its quality, aroma, colour and taste. During wine
manufacturing, wine undergoes several chemical reactions within the contents of
grape juice such as phenolic oxidation, Millard reaction and sugar caramelization.
Also special character such as wine flavor and wine taste are the essential part of
wine. Every wine has its own aroma and taste. These characters are poured in the
wine by use of oak wood. Oak is used in the form of oak barrels, oak wood chips /
ribs and oak wood cork on bottle neck.
Figure No.:4.29: Use of Oak Wood in Wine Manufacturing
2 wineries 5 wineries use

15 wineries use oak
use oak oak wood cork
Wood chips / ribs
wood
barrels
Oak tree is not available in India hence need to be imported from different countries
such as Portugal, America, France, North Africa, Spain etc. Researcher observed
during the field survey that, 88% wineries are dependent on French and Portugal oak
wood.
Let us discuss on different oak wood forms used for wine manufacturing.
Oak wood barrel: Oak wood barrel is costing minimum about Rs. 25,000 – 40,000 of
capacity 225 liters and have a life of about 3-4 years. Over the period of time, oak
wood barrels loses its character of imparting quality parameters into the wine
maturation. Hence it is observed that importing oak wood barrels is a costly affair for
Indian wineries. Only 2 wineries out of 15 use oak wood barrels for small quantity of
wine. These two wineries are linked with wine tourism business hence they use these
barrels for promotional purpose and to give a professional ambience.
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Oak wood cork: Wine maturation can also be done by use of oak wood cork once
wine is packed in to the bottle. However by default, oak wood cork needs to be
imported. The cost of one cork varies from Rs. 25 to 200. Here one interesting point
to be noted that currently, synthetic cork made from non-wooden material are also
available in the market and can be found used by some of the wineries. The cost of
synthetic type of cork is almost lesser by 75%. After wine is packed into bottles, it is
required to place the bottles in horizontal position so as to keep the wine in contact
with cork. Hence wine gets maturated during the storage in a slower and steady pace.
During the storage of wine bottles, it is required to rattle the bottles so as to blend the
wine and keep in touch with oak wood uniformly. Another problem is that the storage
of glass bottles for longer time is also risky and most importantly cost is involved.
This also involves cost of maintaining the temperature at 18-200C. Nevertheless, also
need appropriate space for storage and it definitely add cost to the wine. Due to all
above mentioned problems, no winery found to be using oak wood cork method for
red and white wine in general. Only 5 out of 15 found using corks for premium wine
(very small quantity) at wine packaging stage. However, only one winery was found
to be using oak wood cork for making sparkling wine by champagne method since in
this method, oak wood corking is essential.
Oak wood chips / ribs: Considering above mentioned facts, oak wood chips and ribs
are comparatively cost effective and convenient for use. For 1 liter of wine, 1 gram
oak wood chips are used. Cost of oak wood chips is Rs. 550-650 per kilogram; hence
it is very much cost effective. Cooling tank is used for maturation of wine by placing
the oak wood chips and ribs in it. Oak wood chips and ribs are found to be mostly
used in all the wineries covered under research. All 15 wineries use oak wood chips
and ribs.
4.5.4 Wine Blending

Blending of different wines is a most critical process. In blending, two different type
of wines (in terms of quality, taste, colour etc.) are mixed together to create a new
wine with special characteristics. However this job is not that simple and requires
skillful execution under guidance of wine master. It is very important that one must
know the outcome of blended wine before actually blending is done.
259
Fine wine when blended with low quality wine, the results may be lowering the
quality of fine wine. Hence blending subject needs to be handled properly. In
Australia, typical examples of wine blending is done for Cabernet Sauvignon with
Shiraz, Cabernet Sauvignon with Merlot, Cabernet Franc with Merlot, Cabernet Franc
with Cabernet Sauvignon in red wine Chenin Blanc with Sauvignon Blanc in white
wine.
During the survey, researcher observed that out of 15 wineries, 8 uses blending
technique to improve taste of wine to develop new brand range in market.
4.5.5 Aged & Young Wine

The aging of wine is potentially able to improve the quality of wine. This
distinguishes wine from most other consumable goods. While wine is perishable and
capable of deteriorating, complex chemical reactions involving a wine's sugars,
acids and phenolic compounds (such as tannins) can alter the aroma, color, mouth
feel and taste of the wine in a way that may be more pleasing to the taster. The ability
of a wine to age is influenced by many factors including grape variety,
vintage, viticulture practices, wine region and winemaking style. The condition that
the wine is kept for ageing can also influence how well a wine ages and may require
significant time and financial investment.
In western countries, once the wine is packed in the bottle, it is stored in the ‘wine
cellar’ or ‘wine cave’. This is an underground cave for the storage and wine aging.
Wine cellars/ cave protect alcoholic beverages from potentially harmful external
influences, providing darkness and a constant temperature. Wine is a natural,
perishable food product. Left exposed to heat, light, vibration or fluctuations in
temperature and humidity, all types of wine can spoil. Wine can be stored
satisfactorily between 7–18°C as long as any variations are gradual. A temperature
of 13 °C, much like that found in the caves used to store wine in Western Countries, is
ideal for both short-term storage and long-term aging of wine. The storage of wine
underground offers the benefits of energy efficiency.
Bottles for ageing are stored in slanted position so as to keep the natural oak wood
cork in wet condition by means of wine. Oak has natural characteristic of imparting
flavor such as vanilla into the wine. Hence, wine quality is increasing day by day in
terms of flavor, taste, colour, appearance and flavored taste when wine is in bottle.
260
Another advantage of wine bottle storage in slanting position is that the cork being
wet expands in size and fits more tightly. Hence, bottle becomes airtight and does not
allow oxidation of wine because of oxygen.
So, traditional wine drinking countries such as France, Italy, Spain stores wine in
bottle with cork pack for 3 to 50 years. They sell wine made by their previous
generation and store for coming generations. There is one saying in Biblic (Luke
5:39), “No one that has drunk old wine wants new, for he says, The old is nice”.More
the wine old, more it is costly. Cost of wine stored for about 300 years costs up to 10
lacks per 750 ml bottle and surprisingly still has huge demand in the market.
During the study, it was understood by the researcher that, ageing of wine for such a
long time is substantial investment affair for new wineries. Winery invests its
maximum capital in grape purchasing, wine manufacturing, and storage. Grape aging
process for 3 to 15 years is very long period and average winery can’t afford to do so.
How winery will pay its daily expenses? How winery will maintain its working
capital? What about Inventory turnover ratio? How winery will pay bank loan &
interest? And how will it pay returns to investors? Countries like Australia sell
‘mature young wine’ rather than old wine. This is a greatly benefitted Australia since
reached to 7th rank from 26th rank in wine manufacturing category and 4th rank in
wine export category worldwide.
India has also adopted this trend of selling matured young wine. Prolonged storage or
wine aging in India involves a huge investment and financially does not support to an
Indian banking policy. It is better to sell young matured wine rather than storing for
years and years. If initially for 4 to 5 years, continuously wine is produced and once
become skillful in making wine and financially independent, we can also think of
‘wine aging’ in future.
Since Indian climate is hotter compared to Western countries, hence, concept of ‘wine
cave’ is not suitable to Indian wineries. During the survey, researcher noted that, most
of the Indian wineries store their wine in cold storage room. All the 15 wineries under
survey and most of the wineries across India sells only matured young wine. Major
reason is huge investment since most of the wineries are under debt and does not want
to invest money in storing the wine which involves costly affair of storing wine under
cold storage environment.
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4.5.6 Cold Storage for Wine
Even though, wine aging is not preferred widely amongst Indian wineries, it is in
contrast true that every winery needs cold storage for wine preservation. This is
because, if market is available in next year for the wine that is manufactured this year,
then for next year wine manufacturing, one need to vacate the cooling tank that are
filled with the wine. Hence, old wine from such cooling tanks needs to be stored in
cold storage until it is bottled or market is available.
As mentioned above, storage of bottles containing wine in the cold storage means
keeping the bottles at room temperature (19-200C). To achieve this temperature, one
can store the wine bottles in the room adjacent to fermented cooling tank or
underground floor within winery. Such storage area can maintain the required
temperature of 19-200C even in the summer and one can save the cost of electricity
that is wasted for running air conditioning / cooling devices. This technique will
ultimately save manufacturing cost of wine.
Based on the field visit, researcher has concluded following facts that are followed by
the wineries under survey for wine storage and reduced electricity consumption.
 2 wineries use underground fermentation room and cold storage room. On ground
floor, supporting departments such as office, laboratory, conference room and
administration are located.
 2 wineries have used geographical natural resources. They have constructed a
storage room in the hill adjacent to it, which is similar to the wine cave concept.
Here, temperature is maintained by air cooling devices; however, consumption of
electricity is less compared to other cold storage room.
 2 wineries found using synthetic material such as thermocol. Thermocol is affixed
on all the walls of cold storage room which acts as a temperature insulator and
does not allow exchange of heat. Hence it minimizes the cost of electricity.
 8 wineries have constructed cold storage room near to fermentation tank hall.
Temperature of fermentation hall is maintained below 180C all the time, which
helps to reduce the temperature of cold storage room and saves electricity.
 1 winery found using its own cold storage that is constructed near to the winery.
Being a separate unit, maintaining a temperature of 19-200C involve high
consumption of electricity.
262
4.5.7 Wine Filtration
There are two reasons to filter wine: aesthetics and microbial stability. On the
aesthetic side, filtration can make a wine more polished both in the glass and in the
mouth; often creating a rounding effect that softens the wine’s edges. If your wine is
sound with no flaws, then you can decide if you want to further shape your wine by
filtering it. However, if you have residual sugar or Malic acid left in the wine, or there
is a problem with Acetobacter or Brettanomyces during the ageing/storage period,
then filtration is no longer an artistic decision; it becomes the only way to guarantee
microbial stability for the wine.
Traditionally wine manufacturing countries has a mixed type of culture as far as
filtration of wine is concerned. Established professional wineries found to be filtering
the wine since they believe the wine appearance as one of the most typical criteria for
wine marketing. However, those wineries which are of small scale size or home
based, sell raw wine (without filtration process). Such wineries manufacture wine
without filtration process since the wine is consumed by the local customer or by
own.
Based on the survey by researcher, it is observed that all 15 wineries sell filtered
wine. However, only one winery found selling part of its wine in raw wine form for
low income group customers. Furthermore, this winery found selling the wine without
bottling. They serve the wine in the utensil carried by the customer as per their
quantity requirement. Hence cost of such wine is very low and easily affordable by
low income group type of customers. The cost of filtration, bottling and packing is
minimized and wine is made available to the customer at lower price. Cost of
filtration per liter is about Rs.2-3 and cost of one empty bottle (750ml) is Rs.10-20.
Packing cost for one bottle is about Rs.10-15. Hence total cost of wine bottle is
reduced by Rs.20-40.
Researcher has also visited some of homemade wine makers. It was observed that,
they also sell raw wine in low cost to the local customers.
4.5.8 Electricity Power Consumption

Electricity power is the most important factor for every winery. For every winery,
most electricity consumable process is maintaining temperature control during wine
making being a critical process parameter. If temperature is not controlled during
263
wine making, maturation and wine storage; it gets spoiled and is waste. Temperature
is controlled by means of chilled water generated by chilling plant (chillers).
In Maharashtra, most of the areas are with inadequate supply of electricity and
industries are starving because of it. Maharashtra State Electricity Board (MSEB)
fulfills the need of electricity to all the areas by load shedding, ranging from 1 to 5
hours a day. If winery faces the problem of ‘electricity load shedding’, winery has to
depend on diesel generator. Maintaining and using diesel generator is adding
considerable cost to the winery.
To avoid electricity load shedding problem, wineries has opted the option of taking
‘Express Feeder Electricity connection’ from MSEB. In this case, no power load
shedding is done every day, instead, it is done once a week, at fix day for fixed hours.
Hence, wineries plan to have weekly off on the load shedding day and thus can avoid
the loss on other days.
During the field visit, researcher found that, out of 15 wineries, 13 wineries have
opted for ‘Express Feeder Electricity connection’ option. These wineries have also
opted weekly off on the day of electricity shut down day.
Figure No.:4.30: Status of Electricity Bill Payment
Electricity bill paid

7%
Electricity bill
pending
93%
Currently, most of the wineries has suffered from loss and pending overheads
(including electricity bill). In the field survey, researcher noted that, only 1 winery has
paid its electricity bill regularly. Remaining 14 wineries has not paid their electricity
bills on regular basis & hence pending since long back and billing amount has risen to
lacs.
264
During the discussion with the winery personnel, it was noted that every winery is
expecting to wave off the pending electricity bills towards them. It is also expected
by them that the government should allot the special economical electricity rates for
wineries.
4.5.9 Production Suspension

Grape crushing is done in the month February to April being grapes’ harvesting time.
At the beginning of this season, after crushing, grape juice is collected and is further
processed for fermentation process (for 8 to 20 days) and further allowed for
maturation (for 5 to 8 months). However, fermentation period and maturation period
depends on grape quality and its components. Generally, turnaround period for White
wine and Rose wine making is about 7 to 8 months and for Red wine, it is about 9 to
10 months. Hence, final wine is available for the market starting from October
onwards until January. Next harvesting season starts from February; so, wineries can
make wine only once a year.
However, the timelines mentioned above does not work always. Being a poor wine
market for Indian wines, as researcher observed, many wineries has stopped their
production for undefined period.
Table No.:4.29: Production Status of Wineries

Period No. of wineries
Production done every year 3
Production stopped in-between for 1 year 7
Production stopped in-between for 2 years 4
Production stopped in-between for 3 years 1
Figure No.:4.31: Production Status of Wineries
265
Production
stopped in-
between for 2
years
27%
Production
stopped in- Production
between for 1 stopped in-
year between for 3
46% years
7%
Production done
every year
20%
Out of 15 wineries, only 3 wineries could able to sustain their production activities
every year and has continued the production every year. However, remaining 12
wineries observed to be discontinuing production in-between for 1 to 3 years.
Following the reasons for shutdown of production in-between:
 Market is not always available for the winery because they can’t compete with
large scale wineries. Competition is always an important factor and plays vital
role in this case also. The small scale wineries has limited budget on marketing
strategy (mostly no budget) and hence unable to bring the brand to the customers.
 Most of the wineries are unable to sell their product every year. Remaining wine
is sold next year and hence does not go for wine manufacturing every year. Some
of the wineries take break for production every 2 to 3 years to consume the old
stock. The fact may be to avoid dead stock and avoid risk of sale.
 Wine industry is a technical industry and needs continuous up gradation in terms
of technology and market knowledge. Owners of most of the wineries are having
agricultural background and are not keen interested in implementation of new
techniques for atomization and market knowledge. They just follow the
traditional rules and continue the wine business. There is no strategy towards
market development; branding etc. poor knowledge of marketing has major
contribution towards incomplete stock sale out every year.
 Another reason is that, there has been huge increase in number of new wineries
after year 2005. However, market requirement was also growing in parallel until
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2009. Major setback was observed on tourism after terrorist attack in 2009 in
Mumbai and has impacted the wine sale as well. Following table and graph
shows typical decrease in wine production in Maharashtra after year 2009.
Table No.:4.30: Year wise Wine Production in Maharashtra

Year Wine production in liters
2004 30,14,500
2005 54,64,000
2006 94,79,000
2007 1,32,76,000
2008 2,11,21,000
2009 1,00,00,000
2010 1,10,00,000
2011 1,25,00,000
2012 1,32,01,000
Figure No.:4.32: Status of Wine Production Post Year 2009 in Maharashtra
25
in millions
20
15
10
4.5.10 Contract Business
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As discussed above, 12 out of 15 wineries are irregular in wine manufacturing every
year. However these stoppages can be utilized by other efficient wineries by renting
the halted wineries on lease basis. This is one of the best methods widely adopted in
Maharashtra. This method reduces the cost of facility maintenance and acts as income
source. Following are the observations noted by the researched based on the survey of
15 wineries.
Table No.:4.31: Status of Wineries Contract Business

Nashik region Rest Maharashtra
Details
wineries(A) wineries (B)
Do not rent 3 7
Rented for 1 year None 1
Rented for 2 years 1 None
Rented for 3 years 1 None
Rented for 4 years and more 2 None
Total (A+B) 15
Currently, new trend of wine marketing has gained its importance. Some marketing
companies have started marketing of wines based on lease basis. Such marketing
companies do not invest in wine manufacturing but they solely make the wine from
the other winery on lease basis. It means that such companies only use the winery for
their wine brand manufacturing and sale in the market. This benefit to both side of
users viz. wine manufacturer and marketing firm. Contract period varies from
minimum one year and above. However the period of contract depends on market
situation and product marketing.
Amongst Indian wineries, ‘Sula winery’ is the biggest winery as far as manufacturing
capacity and turnover is concerned. More than 60% of Indian wine market is captured
by Sula and exports wine in more than 80 countries globally. Sula is the best
established brand amongst Indian wine customer and is most preferred brand.
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Sula has its own winery unit located in Nasik area. However, to cater the market
requirement, another three wineries has been rented on long term (about 10 years)
contractual basis by Sula. This shows how strong market Sula has developed within
India. Apart from this, Sula also purchase dead stock of wine from other wineries that
has less market compared to their manufacturing. Based on the required quality norms
check, Sula uses the wine for its own brands.
4.5.11 Pomace as Byproduct

Once the grape juice is taken out from grapes after pressing, the leftover solid mass is
called as ‘Pomace’. Most of the wineries are found unaware of products derived from
pomace. Grape pomace is a rich source of polyphenols, natural pigments, dietary
supplements and compounds of high therapeutic values. Unfortunately, because of
non-availability of knowledge and technology, Indian wineries are unable get the
benefit of such natural resource in the form of pomace.
Pomace can be used to manufacture seed oil, brandy, cattle food, fertilizer, natural
food colorants, dietary fibers, production of citric acid and tartaric acid and many
more. However, wineries covered under research found to utilize in limited manner.
Following data was revealed by the researcher during field survey.
Table No.:4.32: Use of Pomace

Details No of wineries
Not used 7
For Fertilizer 3
For cattle food 3
Pomace supplied to other winery 2
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Figure No.:4.33: Use of Pomace by Wineries
For Fertilizer, 20%
Not used, 47%
For cattle
food, 20%
Pomace supplied
to other
winery, 13%
It is very true that, wine business is show business and one need to maintain the
winery premise neat and clean all the time. Tourists, visitors, guests that visit the
winery must get a wow experience/ however wineries under research study failed to
maintain the premises in proper way. The first impression is the best impression and
one need to adhere to it.
Main concerns about wineries in India are bad facility maintenance, bad smell around
premises, mess-up of pomace, scattered items etc. This results into wrong image
about the winery.
Hence pomace can be used and managed in proper way by means of making
byproducts as mentioned above.
Sula winery manufactures India’s first grapes seed oil from pomace under the brand
name ‘SULA Pure Grape Seed Oil’. Sula purchase pomace from the other associated
wineries and make grape seed oil. Seed oil has increase in demand for the use in
cosmetics, medicines or for other domestic purpose.
4.5.12 Manpower in Production Department

Every industry needs manpower at all the levels with sound technical and skillful
knowledge. Wine industry is no exception. At all the levels, every winery needs
different category of technical competent employees.
Following are the essential employees needed for running a winery.
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i. Wine Maker: wine maker makes the wine for winery. This person is highly
skilled person and used for starting operation i.e. grape cultivation to end operation
i.e. bottling. This person gives service all the time to the winery and is key person
amongst the staff. To make a carrier as a wine maker, one needs to avail the degree
in wine (Enology) manufacturing with experience of wine making. Wine making is
an art and only skilled and experience person can make a quality wine. Wine
maker testes the wine on periodic time and keeps a close eye on the wine quality.
He/she also approves the wine completion in terms of maturation, aroma, colour
and time to sell the wine in the market. Some large scale wineries also appoint
assistant wine maker to help main wine maker.
ii. Wine Master: This person guides to wine maker for laboratory analysis, blending
(process of mixing two different wines in defined ratio) and improvement in wine
quality. Such skillful wine masters are not available in India and mostly consulted
from foreign countries. Hence Indian wine maker takes guidance from wine master
over email or telephone.
iii. Wine Tester: This person evaluates the wine quality by means of sensory
evaluation. Wine parameters such as taste, colour, appearance, flavored taste are
very difficult to judge in laboratory. Hence wine tester evaluates the wine quality
by means of sense organs. Sensitivity to sense organs is a matter of discussion of
human psychology. Hence this kind of wine tester is very rare in India and is
available only in foreign countries.
iv. Factory Manager: This person involves the role of managing all the factory
matters. This person is the final decision maker for all the routine issues and
challenges. He is deciding factor for procurement, sale and each in and out of
factory. All the functions are reporting to this person.
v. Production Manager: Production activities are monitored by this person and

involved in planning, execution of the production plan. He is the authority to
decide the start of production batch and also involved in troubleshooting of
problems encountered during the wine production. All the production technical
staff reports to this person. In case of bigger scale winery, a backup in the form of
assistant production manager is also employed. In such scenario, assistant
production manager gives managerial as well as technical support to production
manager and acts a second line manager.
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vi. Technical Staff / Skilled Labor: This category of employees is machine operators
or helpers. They work under the instruction of production manager. They are not
the deciding factors at any stage during wine production and storage. Apart from
machine operation, they are also responsible for material movement and upkeep of
premises in terms of cleaning.
Although there is no defined function wise job role available in wineries, following
documentation is handled within wineries.
 Financial records
 Production records
 Quality assurance records
 Sales records.
Table No.:4.33: List of Records Used in Winery
Type of record Information to be recorded

Production records  Manufacturing Methods for red and white wine
 Raw materials and ingredients received & suppliers
 Wastage % at different stages of the process
 Stock levels for each ingredient
 Production volumes and measurements
 Maintenance programs and schedules
Quality assurance Records  Target amounts of ingredients and any changes
made to recipe
 Measurements made at process control points
 Batch numbers and product code numbers
 Cleaning procedures and schedules
Sales records  Names & qty. sold to customer
 Weekly and monthly sales volumes
Financial records  Income from sales
 Costs of all process inputs
 Staff records
 Cash flow
 Profit/loss
 Tax records
 Bank statements
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Based on the field survey, researcher has made following observations.
i. In each winery, minimum 4 to 5 employees are working on permanent basis.
They are employed throughout the year and responsible for major activities such
as upkeep of premises, production activity, storage, accounts and accompanying
winery visitors. In small scale winery, first employee is wine maker and second
is factory manager. Factory manager can also act as production manager).
Remaining is technical staff. In large scale winery, about 20 to 25 employees
are available on permanent basis. Their roles are as defined above.
ii. However, this situation of number of employees per winery is not fixed and
varies during harvesting period. During harvesting period (February to April),
additional manpower is recruited so as to handle the work load. In case of small
scale winery, employment can increase 5 to 20. These additional employees are
hired on daily wages basis and are non-technical and used only as helping hand
for non-critical stages and material handling.
iii. Wine master and wine tester are most experienced employees in the winery and
have generally 15- 30 years of experience of wine industry. Since Indian wine
industry is young and experienced person are almost nil. Hence expertise is
imported to India. Large scale wineries generally prefer to employ foreign wine
makers and testers so as to enhance wine quality as per global standards. Those
wineries aiming the foreign market uses such kind of employees since fees of
such employees is very costly. Cost of one wine maker or tester is ranging from
5 lakhs to 1 crore. The cost is of course depends on the wine knowledge and
experience in wine industry.
iv. Salary of different grades is also depending on the skill and years of experience.
In general, following is the ranges of salary
 Wine maker: 18,000 – 25,000 Rs. Per month
 Production Manager/ Factory Manager: 15,000 – 20,000 Rs. Per month
 Technical staff: 5,000- 8,000 Rs per month.
v. In Maharashtra, there are 25-30 wine makers available and they impart services
to 2 to 3 wineries at a time. During the discussion, it was noted that the wine
makers are not happy with the scale they are getting from one winery. Since
salary from one winery is not sufficient, some of wine makers prefer to give
services to more than one winery and earn a respectable amount.
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vi. There is considerable employee turnover rate (attrition rate) observed amongst
wine industry. This is more prominent where wine parks are available and
employees have multiple options of job offers. It was observed that employees
in Nasik wine zone opt for the job to other winery even for small amount of rise
in the salary.
4.6 Wine Marketing

“Being good in business is the most fascinating kind of art. Making money is art and
working is art and good business is the best art.” by Mr. Andy Warhole.
Building brands in this market is quite difficult especially the traditional country like
India where wine consumption itself is offensive. Hence the brand should be built in
such a way that it should attract customer in a gentle manner in the traditional
cultured market. There is one saying by Mr. Magan, “you can create a brand over
and over again but unfortunately you can kill it only once.”
There is one small but interesting story published in Sakal newspaper, 5 th September
2006. One wine owner in South America wanted to sell his wine in America. He has
visited many super stores often to get an order for his wine, however he was
unsuccessful. At the last, he decided to visit the famous super mart “Walmart” to sell
his wine. In the first visit, nothing came out positive, but on repeated visits, finally
Walmart has given an order of 120 bottles. “You will get the next order only when
these 120 bottles are getting sold in one month”, said the manager.
So, the wine owner kept his 120 bottles in the Walmart store. After a month, he went
to the store and found that not a single bottle was sold! He was quite upset and he
came back to his home. He thought a lot on this issue and finally got an idea to sell
the wine bottles.
Next day, he again went to Walmart store and after taking permission from the
manager, kept 120 bottles in the shelf and posted one poster near to shelf.
On that day, all 120 bottles were sold and he got next order. Thereafter, his wine
bottles were sold in all the Walmart stores across America and made a huge profit.
On the poster, he has written three sentences. “South America’s rare and best quality
wine”, Limited stock”, “only one bottle per customer”.
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One needs to identify the mentality of the customer. It is true that making a product is
a challenge, but putting this product in the customer’s heart is an even more
challenging.
Traditionally, Indians want to see on the back label except for complex names that we
really cannot pronounce or the name of the vineyard which we have no clue about?
The front label is for design team to play with who must keep in mind the local and
national laws/ requirements. We as Indians are a big, diverse lot in the sense that we
speak many languages, come from different cultural backgrounds, and have different
habits and stimuli, but the one thing that brings us all together is that commonly
accepted business language remains the same all over the country English. Many
things comes to the mind that why does the wine necessarily need to come in a glass
bottle? How about tetra packs, bag-in-box or plastic bottles? You first reaction may be
negative. The market is too young to handle this. But try it and you will be surprised
how well your products are received by the consumers.
Being a young industry, there are many challenges as far marketing is concerned,
however need to overcome the situation in keeping in mind about class of customers.
4.6.1 Product Life Cycle of Wine

It is a business technique that attempts to list the stages in the lifespan of
commercial/consumer products. 'Product Life cycle' (PLC) is used for determining the
lifespan of these products; such as the normal phases through which a product goes
over its lifespan. A bi-product of this PLC information is Product Life cycle
Management (PLM).
Figure No.:4.34 Product Life Cycle of Business
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This is the management of the gathered PLC data to use in different aspects of the
business. Currently wine industry is in ‘Introduction stage’ phase. Under introduction
cycle, following are the essentials.
Wine industry need to focus on the following points and should decide marketing
strategy based on the same.
A. Introduction Stage
Sales grow slowly Profit is minimal or negative
Create awareness Stimulate trial
High production costs Limited product models
Frequent product modification Penetration pricing
Skimming pricing Little competition
High failure rate, High marketing costs
Promotion strategy focuses on primary demand for the product category
Developing product awareness Informing about product benefits.
Intensive personal selling to retailers and wholesalers is required.
4.6.2 Maharashtra Wine Marketing in Other States

Policies and actions plans on wine and other alcoholic beverages are controlled by the
state Government. Some state governments like Maharashtra, Goa, Karnataka, Tamil
Nadu etc. supports wine industry but in other states such as Gujarat, Manipur,
Mizoram and Nagaland and union territory of Lakshadweep, sales of wine is
prohibited. Kerala is implementing prohibition in phase manner.
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Table No.:4.34: Status of Wine Sales within India
Details No of wineries
Sales in Maharashtra 6
Sales outside Maharashtra 9
Figure No.:4.35: Status of Sales within India
Sales in other
states Sales in
60% Maharashtra
40%
During the field survey, researcher has noted that out of 15 wineries, 6 wineries sale
wine in Maharashtra state only, whereas remaining 9 sales their wine in Maharashtra
and in other states as well, such as Goa, Tamilnadu, Pondicherry, Himachal Pradesh,
Punjab, Andhra Pradesh, Madhya Pradesh, Delhi, Chandigarh, Karnataka, Uttar
Pradesh, Hariyana, Rajasthan, Daman, Kerala, Mizoram, Meghalaya, Sikkim etc.
Every state has its own state liquor policy and is different in terms of taxes as well as
benefits to wineries. Wine priced in one state is different than other state. If one has to
sale the wine from one state to other, one has to pay the additional tax. Hence
Maharashtra wine sold in other state is as costly as export to other country. In
addition, there is a heavy documentation needed for this sale. One need to go through
a lengthy procedure of availing state permit, excise permit, license etc. Also, winery
has to keep updated on different policies applicable for individual state. All above
mentioned problems has concluded in shrinking the wine market in totality. Wineries
do not initiate to sale its winery into other state and limits its market within home
state. This needs to be changed. We need to work on one unique policy for India so
that individual winery can sale its own wine in hassle-free way within India.
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4.6.3 Wine Export
Amongst the export wineries, major share is played by Sula winery and Grover
winery. Before year 2001, Chateau Indage was the only winery for wine export.
Indian customer prefers to have imported wine rather than Indian wine.
European wine producing countries such as Italy, France are not naturally gifted
countries in terms of weather. In total, out of 5 years, 4 years are with hazy weather
and raining. There is no sunlight at all. In such case, sugar is not nourished in the
grapes naturally. Hence wine (called as ‘Vintage Wine’) from the grapes grown in 5th
year (where sunlight is available) is costlier that reaming wine manufactured from the
grapes with no sunlight. Price of such wine is costlier than normal wine by 3-4 times.
In contrast, India, where sunlight is available in plenty amount and weather is a god’s
gift in Maharashtra, it is very much possible to make ‘Vintage wine’.
Out of 15 wineries, only 5 wineries export wine and remaining 10 prefer to sale wine
only in India.
i. Indian wine makers are not visionary for wine export strategies since Indian
wine industry is at its young stage. Even for domestic market they do not have
any specific market policies or targets. Hence they do not have confidence for
wine export and who so ever is exporting, are doing it with negligible quantity
(less than 5%).
ii. Out of 5 wineries, 2 wineries has exported only once to UK and export volume
was about 5-7%
iii. Another 1 winery has exported to UK consecutively for two years. Export
quantity was about 3-4 % of total wine produced.
iv. 2 wineries have exported to Singapore and Nepal through third party marketing
company.
v. In case of wine export, it is done in bulk (loose) quantity and packed in ‘Flexi
Bag (food grade balloons)’ which is made up of high tensile polythene. Such
bags are not manufactured in India and need to import. Cost of such one bag is
about Rs. 30,000 to 40,000 and is not reusable. In one bag, 12,000 to 24,000
liters of wine can be packed. Once they are exported to the destination country,
repackaging is done in the bottles and labelling is done. Apart from flexi bag
option, other packaging such as stainless steel container or barrels can also be
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used. Out of 15 wineries, 3 wineries are exporting wine using flexi Bag and
barrels.
4.6.4 Wine Packaging

Packaging of wine plays vital role in marketing of wine. A customer prefers the wine
having good packaging and art work well crafted. Overall appearance and aesthetic
look of wine bottle is impressive factor as far as selection of wine for drinking is
concerned.
In packaging, there are three important components of wine viz. serving utensil
(bottling), sealing and labeling.
A. Serving Utensil
There are several serving utensil options available for wine. Currently widely used are
glass bottles, pet bottles, bag in box, pouch and aluminium cans. However in Indian
market, most preferable packaging media is glass bottle.
Based on the survey of 15 wineries, it was observed that most of wineries use glass
bottles. One winery found to be packing wine in barrels and sale to other winery,
which further packed into glass bottles. Use of glass bottles is also a brand symbol
and customer prefers to buy wine in bottles than in any other pack. The reason may be
a traditional image of wine bottle.
Table No.: 4.35: Use of Serving Utensil for Wine

Glass bottle
Size No of wineries Percentage
750ml 14 74%
375ml 7 15%
180ml 10 9.8%
Bag in Box
1.5 liters 2 0.7%
3 liters 3 0.5%
Above 3 liters None NA
Glass bottles are available in various sizes ranging from 180 ml to 750ml content.
Amber colour bottles are used for red wine packaging, whereas for white wine,
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transparent colour bottle is used. A pink colour bottle is preferred for rose wine. Cost
of one new glass bottle made in India costs up to Rs.50-60. Same china made glass
bottle costs up to Rs.40-45 and cost of old glass bottle (recycled) is Rs.9-12.
However, before using old glass bottles, one has to disinfect the glass bottles. Old
glass bottles are available in the market in considerable quantity and are widely used
by wineries. Once the wine is consumed by the customers, bar tenders collects the
bottles and earn money by selling back to wineries. This continuous chain has helped
wineries to reduce packaging costs by some means.
Over the period of time, wineries have developed with different capacity bottles. As
per wine experts, wine consumption per day should not be more than 150ml. hence
buying and consuming 750ml bottle at a time is not feasible. Since wine gets oxidized
immediately once it comes in contact with atmosphere, it is also not recommended to
store the loose bottle. It is hence wineries have started using lower capacity bottles for
wine bottling. Above table shows different size bottles used by the wineries under
survey. Although use of lower size bottles is not preferred but coming up to be widely
accepted pack of future.
Apart from glass bottles, ‘Liqui-Box’, ‘Bag in Box’ type of pack concept is also
growing in India. Inner side of such bag is made of high density triple laminated
papers and is air tight from all the sides. There is one small tap provided to pour wine
into glass. Such bags are widely available in the market and costs up to Rs. 70-80.
Once the wine is consumed from the bag, it can’t be reusable.
Use of ‘aluminium can’ for wine is not preferred in India. This new packaging style is
slowly accepted in foreign countries but currently is not much popular. Another type
of pack is ‘pouch’, which is also preferred almost negligible in India. During the
survey, one winery has done pouch packaging once in the past; however, being a poor
response from the market, this pack was discontinued.
B. Sealing
Oxygen is the biggest enemy of wine. Exposure of wine to the atmosphere leads to
oxidation of wine and loose its taste. Hence sealing of bottles is equally important
process during packaging. There are two type of sealing done for wine bottle. viz.
Oak wood cork and screw cap.
We have already discussed about importance of Oak wood in wine in the previous
section of this thesis. Cork made by synthetic material is also available in the market
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as a cheap rate; however natural Oak wood cork is beneficial for wine quality. To
beautify the bottle, once cork is fixed, aluminium foil is applied on the cork. This
gives an elegance look to the bottle. Cost of such aluminium foil is about Rs.3 – 15.
Option to costly wood cork is ‘Screw cap’ and is widely used in Indian wine industry.
Compared to Oak wood cost (Rs.200 per cork), one screw cap costs up to Rs.6-8. This
is the major component deciding packaging cost of the wine bottle. However, screw
cap has its own disadvantage as well.
Based on the survey, it is observed that 6 out of 15 wineries use Oak wood cork for
their premium brand wines and remaining wine bottles are packed using screw cap. 9
wineries use only screw cap.
Since Indian wineries sale young wine, use of Oak wood cork does not play vital role.
However, needless to say, Oak wood adds a value to wine in terms of quality,
aesthetic look and richness of wine.
C. Labeling:
The label on the wine bottle (or box) is undoubtedly the most powerful marketing tool
available to a winery. Unless you are familiar with that winery’s unique story or
reputation, the label is one of the fastest ways to connect you to that bottle begging to
be purchased. Wineries do have some control over how the label looks, but
governments control the information that must appear on the label. If you understand
this information, you can make more informed buying decisions.
Statutory requirements for labeling of wine bottles in India are very stringent. Food
Safety and Standards Authority of India (FSSAI) labeling requirements includes
Addresses, Dating and Ingredients, price, state sale only etc.
Another statutory body, ‘Department of Consumer Affairs’ has labeling requirements
such as Name and address of the importer, Generic or common name of the packaged
commodity, Net quantity in terms of standard units of weights and measures, Month
and year in which the commodity was manufactured, packed, or imported.
In addition, the Standards and Weights and Measures (National Standards) Rules,
1988, state that the alcoholic strength must be declared on the label as a percentage of
volume with the symbol ―% Vol.
So every wine manufacturer has to design a label considering the statutory
requirement and also need to add a unique labelling design, tag line etc. In fewer
words, one needs to give maximum information about the brand.
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During the survey, it was observed by the researcher that all the wineries are not
aggressive for its brand logo or company logo. Being logo, a unique marketing tool
for any product, one need to focus more on logo design and its placement on the label
with unique colors scheme. However, 4 wineries out of 15 observed to be sensitive
about brand logo and found to use logo in a skillful manner on the label. Presentation
of brand on the label was observed to be aggressively considered. Label drafting is
also done by the hired experts so as to guide on the current labeling techniques and
designs. Remaining 11 wineries were unaware about this fact. They observed to be
ignorant of brand logo and kept on changing the logo periodically. Some wineries has
copied the logo from other wineries and tried to manipulate it. Change in the logo has
not built to faith on the brand and surely has impacted on the business front.
D. Cartooning
To compete in the race of business, one needs to present its product in a unique
manner. Very few wineries in India have adopted a concept of cartooning to the
bottle. Wine bottle in a unique carton gives a different look to the wine bottle. The
carton is designed in a manner to add the richness to the product and urges customer
to buy a product at an increased price. When a customer buys such packed wine
bottle, surely a feeling of richness and eagerness to try the product strikes in his mind.
It is also felt by the customer that the inside product must be of good quality as that of
its carton.
During the survey, researcher observed that out of 15, only one winery found using
carton for its wine bottle. A selection of carton was unique and pack style was of
‘easy to carry’ cartooned.
4.6.5 Wine Distribution

There are numerous stages of wine distribution. Every state has its own laws for wine
sale and it is mandatory for every winery or wine manufacturer to follow these rules of
sales. State excise is a separate subject of every state and charge has different fee
structure for label registration. Every wine is sold to wine wholesaler and then it is
further sold to retailers. However, as per Government of India circular 2005, one can
sell wine without wholesaler at the following places.
 Retail wine shop
 Hotels, beer bar and permit room
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 Club or wine bar
 Export
In the above areas, wine is sold to the customer. As per State Government income tax
office survey, 2006, there are 1613 wine shops and 7851 permit rooms in
Maharashtra.
Following are the requirements of various licenses for wine distribution.
FL1: Permit for purchase of liquor directly from the distilleries and sale to FL2 or
FL3 license holders. The license holder is allowed to transport the wine and act as
distributing agents.
FL2: Permit for purchase of liquor directly from FL1 license holder and sale to direct
public but cannot sell liquor to FL1 license holder. License holder is not allowed to
transport the wine. An annual fee of INR 80,000 (USD 1834) is charged for issuing of
the license No. FL-BR2 in Maharashtra. (Duration of license is 1st April to 31st
march).(FL means foreign liquor)
FL3: Permit for purchase of liquor from FL1 license holder but not from FL2 license
holders, sale to all. This license is generally given to the hotel owners.
FL4: Permit for wine club
E: Permit for beer bar
E-II: Permit for wine bar
FL/BR-II: Permit for beer Shoppe
Based on the survey, researcher found that wineries are selling the wine through
different channels as mentioned above. Out of 15 wineries, 7 found distributing the
wine by means of different channels and remaining 8 wineries are distributing by
traditional channels. It is very true that distribution is the key factor in any marketing.
Hence researcher has given more focus on distribution channels available in wine
marketing. During research, it was observed that wine industry is facing numerous
challenges for marketing and distribution, hence researcher has done additional wine
field visit, literature survey, interviews of wine experts and available information
review etc. of distribution channels. It was observed that, every winery has its own
distribution channel and combination of channels as well. Amongst all channels,
preferred channels are traditional marketing and direct supply to permit room and
wine bar/shop.
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Sr. Particulars No. of
No. wineries
1 Traditional marketing channel: 4
Manufacturer Wholesaler Retailer  Customer
2 Traditional marketing channel + Direct supply to permit room/ 4
beer bar and wine bar/Shoppe
3 Winery outlet 5
4 Bulk wine sale channel: 1
Sold to other wineries and marketing companies only.
5 Sold in shopping malls + direct supply to permit room and bar 1
Although wineries are doing best as they can do for distribution, there is no fix target
of individual channel. There is lack of strategy for the same and has no specific goals.
There is no subject knowledge amongst the winery owners and are depend mainly on
the distributors for marketing & sale. Furthermore, winery has not done any long term
contract with these distributors; hence wine sale is done as per market situation. There
is no target specification for individual distribution channels.
A. Wholesaler
Wholesale is the main source of distribution amongst most of the wineries.
Commission given to the wholesaler is about 12-15%. Wineries are mostly depending
on the wholesaler to sell their product. It is hence wholesaler take undue advantage of
the weak point of wineries and intends to add the demands towards wineries. It is
expected by the wholesaler to give additional discount on the total sale, free schemes
such as one free case on sale of one case, refrigerator system for wine storage etc.
Wineries who fulfills such additional demands/ expectations, wholesales promotes
sale of wine from those wineries. Hence total sale is increased by sacrificing some of
the profit. However, one needs to keep in mind about the limitation for such demands
since it going to increase over the period of time.
B. Retailers
Once the wine is distributed to wholesales, later they sell wine to retailers such as
wine bar, beer shoppe, bear bar, permit room, club, hotels etc. Commission for such
retailers is about 10-12%. Such retailers also expects some additional discounts and
schemes such as free wine glass or cork opener on each bottle, personnel gift ( watch,
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pen, show items) etc. Although wine manufacturer wish to give customer a gift
articles on every wine bottle, it is not all the time reaching to the customer. Retailers
do not handover such gift items to the customers.
Compared to profit margin with other liquor items, discount in wine is lesser; hence,
wholesaler and retailers are not much interested in selling wine at their outlets.
Wineries who wish to promote sale through wine education program for customers,
free wine testing campaign are not getting much support from these retailers. Even
knowledge that is with these retailers for wine serving, benefits of wine, wine storage
temperature etc. is not shred with the customers.
C. Outlets
Winery outlet is most beneficial and more profitable distribution channel. Since cost
of wine is comparatively less by 25-35% than the market price, customers prefer to
enjoy wine at winery outlet at cheap cost.
One winery can run maximum three outlets (one at winery and others two in other
city). Out of 15 wineries, 5 are selling wine using winery outlet stations. Out of 5,
one winery is selling wine at its winery outlet as well as selling to marketing
company. Such marketing company sales wine on their own brand name. Another
winery is selling wine at winery outlet as well as two outlets are in other cities.
Remaining 3 wineries sell wine at restaurants as well as outlets. Out of these 3
wineries, 1 winery has its own resort and vineyard. In this resort, customers can stay
for 2-3 days and enjoy like a picnic.
At winery outlet, one can do better brand marketing and customer is also made liable
to brand and visit the outlet more frequently. The winery outlet gives much
conformable environment and awareness about wine benefits/ wine education. More
importantly, privacy for individual is maintained at winery and group of family can
enjoy the wine. Winery with wine outlet can be utilized as wine tourism and
enhancing the business.
D. Shopping mall/ Super market

Government of Maharashtra has given permission to sale wine in shopping mall/
super market. Few states (other than Maharashtra) has also given permission for wine
sale. However, wineries in Maharashtra seem to be not getting the benefit of this
channel. Out of 15, only 1 winery has opted this channel. Selling wine at shopping
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mall is well accepted for the ladies customers since they are hesitant to go to wine
shop or wine bar. Ladies customers can be attracted by this option.
E. Online Marketing
Today’s world prefers mostly to purchase things online rather than going to the shop
and standing in queue. Since one has multiple choices on online shopping, it is widely
preferred. However wineries found not getting advantage of this channel. No winery
out of 15 is selling wine online. There are 4 wineries who only advertise their brands
on websites; however sale is not done online. Winery can reach to the customer
through online service and can increase the sale.
F. Contract Marketing
Out 15 wineries, 1 winery prefers to use contract marketing option for distribution. In
this case, wine is sold to marketing firm in bulk quantity and then further sold out in
the market in bottles under brand name of marketing company. Another option here is
that winery is selling the wine with bottling and labelling as per marketing firm’s
brand name requirement and sold in the market under the direction of marketing firm.
However this option has some limitations of freezing out the business since winery is
solely depend on the marketing firm and unable to establish its own brand in the
market. In case, marketing firm failed to continue the business, winery has potential
threat to halting the manufacturing.
4.6.6 Wine Pricing

Price of wine is under the control of ‘State excise department’. Every winery has to
report the details such as total wine production and sale to district office of State
Excise Department. Every state has its own policy and varies state to state. Hence,
price in each state is different. In Maharashtra, state government has waved off excise
duty since year 2005; however, state Excise department has still a complete control on
wine price.
Price of one bottle is not more than 5 times of production cost. For examples, if
manufacturing cost of one wine bottle is Rs.100, then one can sale wine bottle at
maximum retail price Rs.500.
Some of cost addition factors include distributor and retailer’s commission,
transportation, Octri, different promotional activities, brand establishment charges,
license and documentation charges etc. For example, if one 750ml bottle costs Rs.200,
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it includes Rs.92 as marketing expenses. For Rs.300 bottle, includes Rs.133 marketing
expenses and for Rs.400 bottles, Rs.175 is marketing expenses. This is a random
calculation and may vary winery wise. Price at winery outlet is by 25-30% compared
to retailer shop and hence purchasing wine at winery outlet is much cost effective for
both manufacturer and customer.
During field survey, it is observed by the researcher that there are two specific price
segmentation. First is ‘Regular’ brand and another ‘Premium’ brand. Cost of one
premium wine bottle (750ml) is above Rs.500 and Regular brand cost is about Rs.100.
Cost of wine varies with respect to type of wine and different type of grapes used to
manufacture wine and wine making techniques. Hence one will find a huge variation
in wine prices.Currently, to make one 750ml bottle regular wine, manufacturing cost
is about Rs.60-65.
Following are the details of brands and respective prices based on the data collected
by the researcher during visit.
Table No.:4.36: Wine Price
Winery Regular brand Premium brand Total
No. (Price Rs. 100- 500 per (Price above Rs. 500
750ml bottle) per 750ml bottle)
1 9 2 11
2 11 5 16
3 4 3 7
4 8 4 12
5 14 4 18
6 3 1 4
7 6 7 13
8 6 0 6
9 6 4 10
10 2 6 8
11 7 1 8
12 2 2 4
13 9 0 9
14 0 2 2
15 2 0 2
Total 89 41 130
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In the beginning of wine business in India, Indian wine makers has started making a
similar taste wine to that of foreign (generally with little bitter taste), however, over
the period of time, it was observed that Indians, by basic instinct, need a sweet tinge
rather than bitter. Hence, currently wine brand are developed considering this
requirement of Indians. Most of the brands developed are found to be with sweet tinge
of taste and brands are getting popular amongst.
Figure No.: 4.36: Wine Price
16
14
12
10
8
6
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Regular brand Premium brand
From above table and graph, researcher found that,

i. There is ample number of product range developed by wineries. There are
multiple choices for customer to select the brans based on the quality and price.
Price of one bottle varies from Rs.100 to Rs.1700 per 750ml bottle.
ii. Price of bottle is based on the distribution channel, means; bottle is available at
winery outlet at cheaper rate (less by 25-30%) than the MRP.
iii. Wine prices also changes based on the sale by winery to wholesaler and winery
to retailer. Commission of wholesaler (12-15%) is added into the cost of wine.
Wine if sold directly to retailer (wine bar or wine shop), one can find the
competitive price compared to wholesaler price.
iv. Service charges are added to the price in case, wine bottle is purchased at
restaurants and bar or permit room.
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v. Shopping mall / super markets are not much interested in selling the wine.
However, prices for wine at such outlets are much costlier compared to retailer
prices. Cost of service charges, VAT, luxury charges are added into the MRP.
Hence, it is noted that, in every state wine price varies in India. In Maharashtra state,
every supply channels has varied price. Wine manufacturing cost although is more or
less same; the cost varies no of stages involved in the distribution channel.
4.6.7 Wine Education

Wine is a sensitive topic as far India is concerned since religiously Indian society has
not accepted and does not allow drinking wine or liquor. Although there is a vast
difference between wine and liquor, people still believe both the drinks as same and
categorized under Alcoholic beverages. India, where consumption of alcohol is still
an offensive, abusive and nonsocial activity, we can’t expect a hassle-free way for
wine education amongst Indian population. In the recent days, although there is much
awareness increased amongst the youngsters about wine, however people of such
thinking are very less.
Government of India has also considered wine under the category of liquor and it is
not allowed to advertise about the wine through mass media, which is considered to
be the biggest channel of advertisement. Mass media is the only way, where one can
really reach to the ground based people and put the product in a positive manner by
telling the importance and advantages of the product. Since wine is a victim of
misunderstanding of the concept, one has no option left other than educating about
wine within the society by means of other advertising channels.
Wine education means educating people and create awareness about everything in
wine including type, making process, tasting, serving, storage, health benefits, food
pairing and Do’s and Don’ts of wine. It is also learning about identification of good
wine.
Out of 15 wineries, 6 do not provide any focus on wine education. They have not yet
understood the importance of wine education. Remaining 9 wineries has used
following tools of wine education.
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Table No.:4.37: Different Techniques of Wine Education adopted by Wineries
Winery
1 2 3 4 5 6 7 8 9 Total
Tools
Outlet √ √ √ √ 4
Restaurant √ √ √ 3
Seminar √ √ √ 3
Publishing √ √ √ 3
Broachers √ √ √ √ √ √ √ √ 8
Internet √ √ √ √ √ √ √ 7
Wine Festival √ √ √ √ √ √ √ √ 8
Wine tourism √ 1
Total 4 4 4 3 5 4 3 7 3
Based on the evaluation of the above collected data, researcher has noted following
points:
A. Outlet, Restaurant & Wine Tourism
Most effective tool of wine education is winery outlets and restaurants attached to it.
Second effective tool is wine tourism. During visit to winery outlets and restaurants,
people are visiting either through wine tourism or visit on its own. During visit,
people are also curious about knowing details about wine. Here two way
communications is possible effectively and intensity about imparting knowledge by
wine professional and gaining knowledge by customer is very high. Visitor does
accept to spend time with the wine professional and discuss about the wine in detail.
Since this happens in a very comfortable atmosphere, one can choose the right time to
market its own products very effectively. Providing free wine testing is also a best
option in such case. Out of 15 wineries, only 4 wineries have available option of
winery outlet.
B. Seminar
Another important tool is to conduct seminars at winery or at an appropriate place.
This is a mass education program and gives good results. This can be done by
imparting information by the heath processional such as doctors, who intern can add
heath related advantages of wine and deliver information more professional way and
personnel touch based. During such seminars, lectures can be arranged imparted by
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wine professional, who can explain about the wine and its advantages in the language
understood by the participant. It is not always required to advertise about the seminar
for long distance population, however should attract the nearby population. Persons
from surrounding area of winery can be the participants and seminars ?:can be
effectively arranged within winery premises. There is always an enthusiasm amongst
people to see making process of wine. Based on the data analysis as mentioned in the
above table, only 4 wineries so far has used a tool of seminars for wine education.
Even these seminars are not frequently conducted. Seminars are conducted in the
initial phase and not repeated thereafter. It is important to note that one need to care
for customers then only customers will care for you.
C. Wine Festival
Wine festivals are also conducted now days to make people aware about wine.
Government of Maharashtra has taken initiative for conducting such festivals and
invites all the wineries for participation. Grape Processing Board arranges wine
festival every year since year 2011. Apart from the festivals arranged in group by
government, big size wineries arrange wine festival on its own for branding and wine
education. On some instances, five star hotels do also arrange for such wine festivals
sponsored by wineries. During wine festivals, to attract people, celebrities, models
are invited and cultural shows are also arranged. This is the best opportunity for
wineries to advertise their brands and also educate people about wine. Out of 15
wineries, 8 wineries found to participate in wine festival. It was noted that these
wineries found this tool as most effective as far as branding and marketing is
concerned along with the wine awareness.
D. Broacher
Based on the data available as above, most wineries are using method of wine
education by use of product broacher. Researcher has reviewed those broachers used
for wine education and observed some of the wineries lack in necessary content. It was
discussed in details during the meeting with the respective winery employees and
discussed the importance of the same. Many have shown willingness to revise the
content. In the broacher, generally, pictures related to wine, winery, different varieties
etc. was available, however content related to actual wine education such as
importance, health benefits, selection, tasting of wine etc. was missing. Broachers are
distributed during seminar, wine festival, outlet, restaurant and wine tourism.
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E. Internet
Currently best, convenient and fast advertisement tool is internet. The advertisement
can be done on the winery websites or websites associated with wine industries. Out of
15 wineries, 7 have created their profile on websites and advertisement is done along
with wine education. Experts in the wine field have also created their own blogs and
shared the important information about wine with internet users. A group of winery
has also developed mobile app to create awareness about wine and publish the latest
development within wine industry, offers, seminar schedules etc.
F. Publishing
Important articles pertaining to wine are published in the daily newspapers to create
the awareness about wine within the common man. Some experts also publish a
magazine dedicated to wine industry. Such magazines are also publishing information
about wine and related topics. In India, magazines published for wine are Sommelier
India, The wine Magazine, Food and wine Magazine, Wine and Champagne Magazine
etc. Out of 15 wineries, only 3 wineries publish articles in the magazines.
4.6.8 Availability of Marketing Function

Because of globalization era, marketing is much important factor than manufacturing.
Hence one needs to find out new and unique ways of marketing. Every business needs
a separate and strong team for handling marketing function. However, in wine
industry, marketing seems to be an overseen function and is not taken seriously as it
should have been. In general, major marketing functions includes, product
development, distribution, pricing, packaging, brand developing, enhancement of
packaging attractiveness, gain more market, grading & standardization, risk bearing
function, market research and after sales service etc.
Considering the above function, wineries are far away from these functions and one
can understand the actual situation from the below chart. It is surprising to know that
in some of the wineries, there is no marketing function exists! Out of 15 wineries,
only 3 have its own marketing department.
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Figure No.:4.37: Availability of Marketing Function in Wineries
Marketing dept
exists
20%
Marketing dept
not exists
80%
It was observed by the researcher that the wineries with marketing department are into
the business with professional approach. Remaining 12 wineries have either merged
this function with factory head or marketing is handled by winery owner. Both,
factory head or owner does have neither any marketing background nor thought
process. Hence marketing remains always an unseen area for such wineries. Out of 15
wineries, 10 winery owners have agricultural (farming) background hence, one can’t
expect from them to lead the marketing function. A professional marketing person can
only do direct marketing through distributor or retailer. Winery owners with farming
background can’t reach to the customer for branding, achieving targets, feedback
from customer, market research etc. hence it is must to have professional marketing
team within the organization.
Even though, some of the wineries have succeeded to incorporate marketing function
within the organization, they have not completely followed the rules of marketing
function. Hospitality and marketing are closely associated functions and one need to
incorporate hospitality while marketing. At wine outlets, persons employed are not
trained on hospitality behavior and hence completely unaware of formalities that are
expected from them. Out of 15 wineries only 1 has employed staff having hospitality
background along with the marketing knowledge.
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4.6.9 Marketing Strategies
We have already discussed in length about importance of marketing in the wine
business. Even though this is true, current wineries have never taken this concept
seriously and they do not have potential to implement this concept into the business.
Those active in marketing, one can see growth of such wineries however, such
wineries are very rare. The main reason of wine industry in a bad phase can be
concluded as deficient marketing strategies.
To sell or market a product is not only the aim of marketing function, in fact,
marketing starts before production process. Before your start your production process,
one need to understand the true requirement of the customer and segment of potential
target. It is hence market research is required before actual production process and
then design and development. By doing this, there is less chances of failure of your
product in the market. Such developed product is easily acceptable in the market.
However, there is always a prime requirement of marketing strategy for every
business. Under this strategy, one needs to create one market zone and then market
segment. Also one should not forget to get the feedback from the customer about your
product and any improvement in it.
Based on the survey of 15 wineries, researcher has noted following results.
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Table No.:4.38: Marketing Strategies of Wineries
Winery Marketing Market Research Target Help from Income wise Class Gender + Age wise
No. background marketing third segmentation segmentation
of Manager zone party
/ Owner Before After consulting Upper Middle Lower Male Female Youth
Production production firm Class Class Class
1 √ √
2 √ √
3 √ √
4 √ √
5 √ √
6 √
7
8 √ √ √ √ √ √ √
9
10 √
11 √ √ √
12
13 √ √
14 √ √
15 √ √
Total 4 1 3 1 0 3 2 1 10 1 2
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Based on the data analysis of table No. 4.38 & interviews of the wine professionals,
following are the details noted:
A. Education background of Marketing

It is very clear that educational / professional background of marketing is negligible to
the wine owners/ managers. During selection of managers as an employee at winery,
marketing background is never a criterion. Even winery owners have not taken efforts
to understand the basics of marketing. Implementation of marketing strategy is the
thought beyond imagination for wine business. Out of 15, only 2 wineries have
professional marketing team. In these wineries marketing activities are taken care by
this team, hence these two wineries have done well in the market and famous by
name. Their brands are popular in the market and a have considerable demand within
the customers, hence, production of such wineries is continued every year. Out of
these 2 wineries, one winery has done extremely well in terms of marketing a brand
name and there is an increased demand for its products. The demand has increased
such that, they have started contract manufacturing to cater the additional
requirement. Out of 15, another 2 wineries (other than these 2 wineries explained
above), owners or their next generation has availed professional degree course in
marketing or related disciplines. These wineries are also doing well and trying to
establish their brand in better way than others.
Remaining 11 wineries still has a scope of implementing the marketing concept in
their business. Factory manager or owners of these wineries did not have basic
knowledge of marketing function. In such case, marketing firms (third part
contractual basis) can be better option than establishing and maintaining own
marketing team. Although this option is available, however, no winery found to avail
this opportunity.
B. Market Research
As discussed previously, before production process, marketing research should begin
and need to understand the expectation of the customer and available market
potential. Based on this research, product should be designed and developed. Out of
15, only one winery has principally undergone market research process before
production process and found that this winery has done extremely well in the market.
Another 14 wineries failed to do so.
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Once the product is reached to the market, it is also essential that one should take the
feedback from the market about their product. Out of 15, only 3 wineries have done
this kind of research (survey). However out of these 3, only 1 winery is particular in
taking the feedback every year. Another 2 have done post market research once or
twice so far since establishment (in a life span of 8-10 years).
C. Targeting Market / Geographical Zone

In the beginning of the marketing strategy implementation, it is very important to
focus initially to one region/zone. Establish your brand very effectively in one zone
and put all your efforts in making this successful. Do not expand the zone area
immediately. This will help in making the effective implementation of your brand in
to the customer. Develop a good repo with the distribution chain, develop one or two
winery outlets in this particular zone and implement promotional schemes time to
time etc. Once you are able to establish your brand within the target zone, slowly
expand it to another potential zone based on the survey.
However, out of 15, only 1 winery found to develop / target its market zone. Since
they are focusing on the specific zone, they have developed a good repo within the
targeted area. Remaining 14 found to keep floating along with the market because of
their inability to establish marketing into the business. Distributors found to take
undue advantage of these wineries and expect more commission on the product sale.
D. Use of Third Party Marketing Consultancy Firm

Use of subject matter experts (SME) from wine field seems to be good option as far as
marketing implementation is concerned. There are many consulting firms available in
India who can support business with the help of wine field experts and can do
betterment in the business of wine. From the websites, it was revealed by the
researcher that, there are potential consulting firms available and they not only
support in implementing the marketing strategies, but also help in selling the product
in the area beyond the scope of winery. It is also found that, these firms take the
contract for arranging seminars, event management, social get-together, functions
(marriages/ parties/ events), help in getting the product in less prices etc. Once
wineries hire these consulting firms to market the product, they help to sale out
product in such events and thus indirectly help in promoting out products. Although
such firms are not much popular in India, however, in foreign countries, they are more
preferred being a single point contact. If Indian wineries can move towards such
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concept, there is much potential with these consulting firms to bring up the wine
business, especially for those starving to survive in competitive world of wine.
E. Strategy for different Income wise Class Segment:

Wine is considered to be a drink for upper class being a high valued product; however
this is a social myth. Wine can be made affordable to all type of income class people
ranging from Upper to lower. Wineries found to make a wine affordable to all class of
people however we can’t see the efforts in targeting the wine for individual class. For
each class of people, one needs to develop different strategy.
Based on the survey, it is found that, most of the wineries are targeting to only one
specific class, i.e. upper class. There are no potential strategies being implemented for
other class. In India, Middle class is supposed to be backbone of economy and more
than 60% of population is living under middle class segment. Wineries failed to target
this highly populated class. Sincere efforts need to be taken in enhancing the
marketing strategies targeting towards middle class.
Even lower class of people can be attracted towards wine in the form of selling raw or
port wine, where cost involved is also comparatively very less. Wineries found to
neglect this lower class for selling or marketing their product.
Out of 15, only 2 wineries found to have targeted lower class for wine sale. Moreover,
these 2 wineries have produced only 5-6% of wine in the form of port wine and raw
wine. (Port wine is ‘fortified wine’ made with adding sugar during wine
manufacturing process. Such wine has higher alcohol content than normal red wine,
about 19-22% and sweeter than red wine).
F. Strategy for Gender and Youth)

Moving toward modernization and adopting western culture in India, wine drinking
amongst females is increased now days. Wine being a healthy drink, it is getting
popular amongst all the genders, with potential increase in females. Hence, in future,
females are going to be potential customer. Apart from female class, youth class is
also a vital customer currently. Youth, being a class of new drinker, prefers to drink
any beverage that contains alcohol. However, if properly focused, youth can become a
potential class of customer of wine in near future. In India, more than 60% of
population is in between 25-32 years. If wineries start to focus some different
marketing strategies to attract this young class, will be an additional advantage.
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In overall, male class is preferred class of wineries, however, in spite of this; there are
no vital strategies available with wineries to attract more and more male class of
customers. Out of 15 wineries, 10 have marketing strategy oriented towards male
customers and 1 for female customers. Winery focusing female customers has
arranged 2-3 seminars for females in the past, however efforts needs to be strengthen.
2 wineries have started to attract youth class by introducing sparkling wine (by adding
CO2), however need more emphasis on new strategies to attract this important class.
Finally, it is very much clear that wineries have developed varieties of brands, product
range, product prices etc. however to market them in a defined way of marketing
strategy is missing. There are potential opportunities in the area of marketing.
4.6.10 Expenditure on Production & Marketing Activities

Out of four phase of product life cycle, wine business in India is at its first stage, i.e.
‘Introduction phase’. Hence it is the first priority of winery businessmen to introduce
the product effectively to the customers. Hence, one needs to focus more on
marketing aspect rather than production.
Table No.:4.39: Ratio of Expenditure, Production: Marketing

Winery No. Ratio
1 85: 15
2 70:30
3 75:25
4 60:40
5 60:40
6 80:20
7 70:30
8 75:25
9 70:30
10 30:70
11 80:20
12 75:25
13 70:30
14 65:35
15 80:20
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Figure No.:4.38: Ratio of Expenditure for Production: Marketing
In general, ideal ratio of production to marketing in wine industry is 60:40. Wine

marketing is a business where things needs to be beautified with the help of aesthetic
look and this is only achieved by means of focusing more on marketing rather than
production. Top wineries in India have production to marketing expenditure ratio of
20:80. They have paid a complete and careful attention on marketing their product.
Based on above information, following points has been concluded:

i. Based on the discussion with wine experts to understand the concept of
expenditure on production and marketing fields, it was understood that the
standard expected ratio of Production: Marketing is 60:40. This ratio seems to
be different than the normal business model; the reason may be being wine
business, a young business.
ii. Out of 15 wineries, 12 invest only 30% on marketing and consider production
as a prime area of expenditure. However this is being not considered viable for
wine business and need to focus on expenditure on marketing part.
iii. Only 2 out of 15 wineries found to maintain 60:40 ratio.
iv. 1 winery out of 15, reputed in India, probably first three, found to use 30:70
ratio. In the event of shortfall of own stock, they do not undergo to invest in
production, rather purchase the wine in bulk from other wineries and after
bottling, sale the same to fulfil the market demand. Here, interesting to note
that, they have kept expenditure 70% constant on marketing.
300
v. 12 wineries have marketing expenditure less than 30%. Most of the
expenditure involves license renovation, tax payment, distributor commission,
transportation etc. hence unable to spare money for promotional activities.
vi. Researcher tried to understand the reason behind less expenditure on
marketing side (such as wine promotion); it was revealed that, there was no
financial provision for marketing done before establishment of wine business.
They have spent the maximum budget on winery establishment and production
process. They have not considered marketing overhead cost before finalizing
the overall budget.
vii. Lack of entrepreneurship attitude is clearly seen within the wine owners
having agricultural background. Hence wine industry has never reached to a
professional business.
4.7 Government Policies

Unless alcohol is produced in wine, wine is considered to be under food category.
Once alcohol is available in the wine, then onwards, it is treated as liquor. Hence,
wine falls under the category of food as well as liquor. Government policies
pertaining to food and liquor are applicable to wine industry. Wine business is
controlled by state excise department hence district level state excise office is the
main contact point for the wineries falling under the respective district.
4.7.1 State Excise Department

State excise wine policy has been implemented in Maharashtra since year 2001.
Under this policy, Maharashtra government has waved off the excise duty upto 100%
for wineries in Maharashtra. However, since wine is under the category of ‘Liquor’,
there is still a complete control by state excise department. Wine grape crushing,
pressing is done under the supervisor of state excise officer.
All the government requirement of winery establishment is taken care by State Excise
office. Wine production and sales license, registrations related to winery (brand
registration etc.) is also obtained from this office and need to renew every year.
Also, once the wine is matured in fermentation tank, level of wine formed, bottling,
label registration and also wine sales records are done under the state government
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officer. Hence there is a separate working space allotted for state excise officer at
each winery.
Based on the research study, interview of concerned wine professional and review of
routine work at wineries under research, following points were noted:
 Control of excise department in every aspect of wine manufacturing and
marketing should be dismissed.
 Wine business should be categorized completely under ‘Food Industry’.
 Another major issue with the government involvement is facing typical
government attitude, corruption, late coming / waiting, red-tapism etc. Most of
the time, winery personnel spend their time in flattering the government officers
and doing documentation work.
 If state excise control on burdensome areas is restricted, work in winery can be
done freely and in comfortable manner.
4.7.2 Value Added Tax (VAT)

A value-added tax (VAT) is a form of consumption tax. From the perspective of the
buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the
value added to a product, material, or service, from an accounting point of view, by
this stage of its manufacture or distribution. The manufacturer remits to the
government the difference between these two amounts, and retains the rest for
themselves to offset the taxes they had previously paid on the inputs. The purpose of
VAT is to generate tax revenues to the government similar to the corporate income
tax or the personal income tax.
Based on the discussion during the survey, following comments were noted by the
researcher:
 State government of Maharashtra has given VAT exemption to wine business. In
Maharashtra VAT is charged as 20%. Once winery has paid 20% VAT to the
government, 16% incentive is given back to winery after some days. So in total
inly 4% is paid to the government.
 Out of 15 wineries, 9 wineries are of the opinion that rather than taking 20%
VAT in advance and later on paying back 16% incentive, its common demand
within winery that government should charge 4%VAT. There is unnecessary
investment of money for paying 20% VAT.
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 Remaining 6 wineries are of the opinion that VAT should be completely waved
off and government should stop to charge VAT. Reason understood behind this
was VAT adding a price to the customer.
4.7.3 Maharashtra Grapes Processing Industry Policy, 2001:

Every state in India has implemented different wine policies. To promote wine
manufacturing, the Government of Maharashtra exempted wine produced in the state
from grapes produced in the state from state excise fees from 2001 to 2011. The
exemption has been extended upto 2021 and provides a significant competitive
advantage for wine produced and sold in Maharashtra.
Maharashtra is a leading state in production of Grapes in the whole country. As
process of grape production basically requires major capital investment, if sale or
exports of grape is not possible on time, farmers do suffer a lot. In these
circumstances, it was under consideration of government to declare an independent
policy to encourage the grape growers to produce more beneficial alternative products
from grape, other than the dry fruits and table grapes.
Evaluation of 2001 policy as follows:
A. Declaration as a Preferential Area

As the Winery industry does not falls under the preferential area of granting loans, the
financial institution like NABARD does not grant loans for 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.
Researcher evaluates that, since wine industry is declared as preferential area by
Maharashtra government, NABARD has advised banks and financial institutions to
provide financial supply to farmers and entrepreneurs.
B. Declaration as a Small Scale Industry

Within the limits of investments prescribed for the Small Scale Industry, wineries are
considered as a Small Scale Industry. Researcher evaluate that, wine industry is
getting all the benefits of small scale industry since being declared so.
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C. Concessions in Excise Duty
For those wine industries whose production has been started before 19 th September,
2001, the excise duty is charged at the rate of 50% of the production expenditure
incurred by such units instead of present 100% rate. For those wine industries whose
production has been started on and after 19th September, 2001, the excise duty is
charged at the rate of 25% of the production expenditure incurred by such units. Such
concessions are be admissible for period of 5 years.
Researcher evaluates that, as per government gazette of year 2005, all the excise duty
has been waved off for all wine entrepreneurs. All the wineries have been benefited
because of this decision.
D. Concessions in Sales Tax

It has been decided with the consent of all states in India that the basic rate of sales
tax on liquor is at the rate of 20%. However, 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 is made to the Empowered Committee of Finance Ministers of all
states constituted by the Government of India to reduce the basic rate of sales tax on
wine.
E. Wine Sales License

Wine is permitted for sale by beer bars and also licenses are given to wine bars to sell
wine on the basis of beer bars.
Researcher observed that the wine sale permission has been granted in Maharashtra
and is benefiting the sale of wine.
F. Wine Sales License Fee

An amount of Rs.5000/- per year is charged for License Fee for the sale of wine and
this rate will not be changed for next 10 years.
G. Simplification in the system of License/Permission for Wine Production

If Wine production is done in Winery Park as declared by the State Government,
Wine Product License is 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 is empowered with a binding condition to issue licenses within 30 days.
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Researcher observed that the process of licenses and wine production is simplified in
actual and has benefited to wine business.
H. Establishment of Wine Institute

To maintain the quality of Wine according to International standards and to generate
skilled man power, a separate Wine Institute is established. For setting up of the Wine
Institute, Government/ MIDC have allotted 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 are established by forming separate trust firstly at Sangli and Nashik.
For this purpose, by choosing appropriate alternative from the following alternatives,
training institutes are established:-
 To help the existing trust for formation of training center.
 To establish training institute in joint venture with the existing trust.
 To establish training institute by creating a separate trust.
Researcher observed that, wine institutes are set up at Sangli and Nasik. At Palus,
Sangli district, ‘Krishna Wine Park’, ‘Grape Processing and Research Institute’ has
been established in year 2004. Similarly, at Vinchur, in Nashik district, “Godavari
Wine Park’ has been established.
I. One Window System

For Wine Industry, essential license, plot, electricity supply, telephone etc.
infrastructure is made available with One Window System. Researcher observed that,
all the facilities are available for wineries.
J. Establishment of Grapes Board

A Grape Processing Industry Board is established for Wine and other Grape
Processing Industry in Maharashtra. The Board consists of representatives from the
concerned industry, Grapes producing farmers, State Government, government
laboratories, wine institute etc. The organization and functions of similar kinds of
Boards existing in other countries is examined before establishment of Grape Board in
Maharashtra on same standards. The jurisdiction of the said Grapes Board is under:-
 To inspect and control the Quality of Grape Cultivation and Wine Production.
 To give approval to Labels.
 To inspect Quality and Standard Norms.
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 To draft various Schemes for Sale of Processed Grape Products on the Global
Level.
Researcher noted that, as mentioned above, ‘Maharashtra Grape Board’ is established.
Also, to enhance wine business in India, Ministry of food processing, New Delhi has
established ‘Grape Processing Board’ at Pune in year 2008.
K. Facilities of Food Processing Industries

The facilities which are given to the food processing industry units are given to the
winery product units by giving them the status of Food Processing Units.
Researcher noted that, process before wine making (before alcohol is produced in
wine) is categorized under food category, however, in all; wine is not completely
under food category so far.
L. 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 is given to the tourists to visit Wine Product
Units for testing the wine. Also, licenses are given to such Wine Product Units to sale
wine on retail basis.
Researcher observed that, winery has been granted to open wine outlet and relevant
license has been granted and issued. Government has opened wine business under
tourism category.
M. Taxation on Imported Wine

 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.
 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.
Researcher evaluated that, on imported wine, 200% of bulk liter price or Rs.200 per
liter, whichever is higher, fees is charged. Also, on imported 750ml bottle, 150%
central government import tax is charged. Wine imported from other states of India,
Rs.7 per liter, state government tax is charged. In Maharashtra, wine imported in bulk
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from other states or countries, 150% of wine manufacturing cost (if own brand) and
200% (in case of foreign brand) brand fee / label fee is charged.
N. Grapes Processing Industry - Easiness in the control of Excise Duty Dept.

To simplify the procedure in the collection of excise duty and for creating easiness in
the control of Excise Dept., a committee would be constituted under the Chairmanship
of Principal Secretary (Excise) as under:-
i. Principal Secretary (Excise), Home Dept. Chairman
ii. Secretary (Industries) Member
iii. Secretary (Agriculture) Member
iv. Development Commissioner (Industries) Member
v. Representative of Winery Product Units Member
vi. Managing Director, MTDC Member
vii. Commissioner (Excise Dept.) Member Secretary
Researcher observed that, to make the process easy, such committee is formed in
excise duty department.
4.7.4 Impact of 2001 Wine Policy On Wineries in Maharashtra

After declaration of wine policy in year 2001, entrepreneurs in Maharashtra has given
full support and many wineries has been established after that. Following table shows
the status of wineries before and after wine policy, 2001.
Table No.:4.40: Number of Wineries before Wine Policy 2001
Sr. Wine project name and district Establishment Year

No.
1 Baramati Grape industry Limited, Baramati 1975
2 Cheatau Indage Limited, Narayangaon, Pune 1984
3 Pimpen co-operative limited, Nasik 1990
4 Samant soma wines limited, Nasik 1999
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Table No.: 4.41: Number of Wineries after Wine Policy 2001
Sr. Establish- No of established wineries (region wise) Total
No. ment year Nasik Sangli Pune Rest no. of
Maharashtra wineries
1 2001 2 2
2 2002 3 1 4
3 2003 2 3 5
4 2004 3 3 3 1 10
5 2005 7 2 2 1 12
6 2006 4 2 2 8
7 2007 6 1 7
8 2008 2 2 2 1 7
9 2009 4 3 1 2 10
10 2010 2 4 6
11 2011 1 1 2
Figure No.:4.39: Wineries Before and After Wine Policy Year 2001
14
12
10
Before year 2001, there were only 4 wineries existed. However because of
implementation of wine policy, year 2001, there was a boost in the winery setup,
especially in Nashik zone. It is very clear that Govt. of Maharashtra has made sincere
efforts to bring wine business as a side business for traditional farmers.
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Grape wine business is primarily based on three important factors: wine grape
cultivation, making of wine in winery, and wine sale. Today, we have a financial
support options / subsidies available from state as well as central government from
2001 onwards.
4.7.4.1 For Wine Grape Cultivation

A. National Horticulture Board (NHB), Govt. of India:
Back-ended capital investment subsidy not exceeding 20% of the project cost with a
maximum limit of Rs. 25 lakhs and Rs. 30 lakhs for North East/ Tribal areas per
project for production of high quality commercial horticulture crops.
B. National Horticulture Mission (NHM), Govt. of India:

Back-ended capital investment subsidy not exceeding 75% of the project cost with
maximum limit of Rs.22,500 per hectare for cultivation. For Wine grapes cultivation
and farm building, central govt. offers any one of the above mentioned financial
support / subsidy; hence, benefiter can take help from any one of the above.
In addition to this, from National Horticulture Mission (NHM), Govt. of India
institute, for government and private sector, a financial help of Rs.1.5 Lakhs to 18
Lakhs shall be given for constructing small and large type of nurseries These
nurseries will be developed by means of importing world class wine grape cultivation
material and will be distributed to the farmers.
C. Ministry of Food Processing Industries (MOFPI), Govt. of India:

Incentives in the form of reimbursement will be up to 10% of the total purchase made
by processor in a given year, limited to Rs.10 Lakhs per year for a maximum period
of three years including the period of which assistance has been extended during the
9th plan period.
D. National Horticulture Mission (NHM), Govt. of India:

If a group of minimum 25 farmers if formed and they have done a contract farming
for wine grapes cultivation, then considering all, an amount of Rs.62,500 (Rs.2500
per person) will be give once. This incentive is especially for contract farming.
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4.7.4.2 For Wine Project Construction & Development
A. Ministry of Food Processing Industries ( MOFPI), Govt. of India:

The assistance will be in the form of grant subsidy to 25% of the plant & machinery
& technical civil works subject to maximum of Rs.50 Lakhs in General Areas and
33.33% up to Rs.75 Lakhs in difficult Areas.
B. National Horticulture Board (NHB), Govt. of India:

Back-ended capital investment subsidy not exceeding 20% of the cost with a
maximum limit of Rs.25 Lakhs and 30 Lakhs for North East / Tribal areas per project
for production, postharvest management and primary processing of the Horticulture
produce.
C. National Horticulture Mission ( NHM), Govt. of India:

Back ending capital investment subsidy not exceeding 25% of the project cist with a
maximum limit of Rs.5 lakhs for primary processing of the Horticulture produce.
For wine project construction and development, one out of three financial help can be
availed by the beneficiary. For wine project, from Ministry of Food Processing
Industrial (MOFPI), Govt. of India, beneficiary has to submit a project details to
Maharashtra agricultural Development Board, Mumbai for availing a subsidy before
one month of first year wine manufacturing. The concerned officer of board visit wine
project at the particular date and forward the details of the project after wine
manufacturing scrutiny to MOFPI, New Delhi.
D. District Industries Centre ( DIC), Govt. of Maharashtra Industrial Promotion

Subsidy:
New projects which are set up in three categories in different parts of the state will be
eligible for industrial Promotion Subsidy (IPS). The quantum of subsidy will be
linked to the fixed Capital investment. Payment of IPS every year will be equal to
25% of any Relevant Taxes paid by the eligible unit to the state or to any of its
department or agencies. The quantum of benefit and period will be as follows:
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Table No.:4.42:Quantum of Benefit and Period for Wineries
Taluka / Area Ceiling as % of fixed capital Number of years
classification investment
Micro & small Medium Micro & Medium
Mfg. Mfg. small Mfg. Mfg.
Enterprises Enterprises/ Enterprises Enterprises/
LSI LSI
A - - - -
B 20 - 6 -
C 30 20 7 5
D 40 25 8 6
D+ 50 30 9 7
No Industry District 60 35 10 8
For new wine project, central as well as state Govt. is giving financial support /
subsidies and is also depend on in which zone your project is located.
4.7.4.3 For Wine Sale
A. Ministry of Food Processing Industries ( MOFPI), Govt. of India:

For market survey, test marketing and brand promotion etc. financial assistance of
50% of the cost of the campaign subject to a maximum of Rs. 50 lakhs will be
provided.
B. Agriculture & Processed Food Product Export Development Authority (APEDA),

Govt. of India:
Assistance program for study tour sponsored or organized by APEDA abroad. The
assistance would be restricted to such activities which have co-relation with exports –
50% of the total cost of travel & distribution of study material.
4.7.4.4 Venture Capital

A. With the help of banks, to encourage investment in agricultural business (Wine),
10% of project capital or 26% shares of total cost, whichever is minimum, an
amount up to Rs.75 Lakhs will be available as funds to beneficiary.
B. Beneficiaries living in North east tribal area, hilly area shall be benefitted with
special financial support as per the recommendation by agricultural
development group.
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C. Farmer or product of project should have definite market.
D. To avail the loan, beneficiary will submit the project to bank.
E. Loan will be disbursed to the beneficiary upon verification of project details and
evaluation.
4.7.5 Wine Festival

This wine festival is conducted since year 2012 during every grape harvesting season
by All India Wine Producers Association (AIWPA) with the government support.
Mission of festival is to address the Industry issues and promote the Indian Wines
within the country and abroad.
Mission of the India Grape Harvest –Wine Festival is,
 To give maximum exposure to the small farmers who are producers of Wine,
grape grower, raisin maker, etc.
 To provide the right platform to the Indian wine Industry by providing
awareness for the growth of the industry.
 Local and National coverage by Electronic and Print Media will help to
promote the Indian wine Industry thus making wine a culture in itself in India.
 Boost Agro Economy.
 Promote Food Processing, Contract Farming & Assured income source to
farmers.
 Minimize wastages of perishable crop.
 To help somehow for survival of present industry.
 Retain & Increase direct & indirect Employment.
 Sustainable Growth of the industry.
 Increase in Govt. Revenue.
 Earn foreign currency.
 Health drinks habit in society & prevent consuming hard liquor. Promote food
processing.
 Boost Agro & Eco Tourism.
Support to Wine Festival by government authorities is as follows -

 Ministry of Food Processing Industries, GOI, New Delhi. (MOFPI)
 Incredible India! –ITDC.
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 Maharashtra Industrial Development Corporation (MIDC)
 National Horticultural Mission (NHM)
 Agriculture Process Food Export Development Authority (APEDA)
 National Research center for Grapes (NRCG)
 National Horticultural Board (NHB)
 Maharashtra Agriculture Industries Development Corporation (MAIDC)
 Maharashtra RajyaDrakshaBagayatdarSangh(MRDBS)
 Karnataka Wine Board (KWB)
 Maharashtra state agriculture marketing Board (MSAMB)
 National Bank for Agricultural and Rural Development (NABARD)
 Ministry of small and medium Enterprises (MSME)
 State Bank of India, Bank of Maharashtra
4.8 Analysis Techniques

Based on the collected data, available literature, personnel interview related to wine
and wine experts, researcher has performed following different type of analysis.
4.8.1 SWOT Analysis
SWOT model is used to analyze the internal and external factors affecting the
industry. Strengths and weaknesses are internal factors. Opportunities and threats are
external factors. SWOT model is often used in marketing analysis because it is quick,
easy, and intuitive.
The Indian wine market has great potential and attracting the investors to invest in the
domestic industry. The international firms are also willing to invest in Indian market,
realizing the market potential. India is the second largest population country in the
world. Now a small percentage of Indian total population has exposure to the wine.
However this small percentage is also amounts to approximately 24 million people
and there are more potential customers to tap.
The SWOT analysis provides insight knowledge about the industry.
Strengths
 Over a period of five years statistical data of the industry has announce that the
wine consumption in Indian has grown 25-30% annually. It is a positive sign for
the Indian wine industry.
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 From northwestern region to southern region, the climate of India is very good for
the cultivation of grapes.

 For the employment and education purpose, people from rural areas are moving to
urban are resulting in increasing of urban population. In urban region, people are
getting more exposure to the western culture in comparison to the people from rural
area and which is leading to increase in consumption of wine. Youth are consuming
the alcohol at an early age because of various reasons. They are craving an
alternative to hard liquors and developing a more refined taste and switching to
wine.
 Health awareness amongst Indians is increased and they tend to grab the health
drink, such as wine rather than hard drink such as rum, whisky etc.
 Now more number of women is part of the multinational corporation and they are
also adopting the western culture. Wine is becoming more acceptable to women
and youth because of its taste. India has very favorable demographics which are
contributing towards the industry growth. Due to change in consumer tastes and
preferences also the wine marketing is growing.
 India is known for its incredible tourist locations. Tourism industry is growing
because of low cost air fare and the marketing of the tourist places. Foreign tourists
are getting attracted and visiting India. Foreign tourists are also contributing
towards growth of the wine industry.
 Tier I and Tier II Cities are expanding rapidly because of growth in infrastructure
industry. More number of shopping malls and bars are coming up in the cities
which are easy access to purchase.
 Foreign Players are also investing in the Indian market because of high potential of
the wine industry.
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Figure No.:4.40: SWOT Analysis of Wine Industry
Strengths Weakness
• Indian wine consumption has • Wine remains an elite taste.

grown 25-30% annually over a • Wine is difficult to store in
5 year period. India due to lack of cellars and
• Good climate for grape growing refrigeration.
• Urban population is increasing. • Less than 50 percent of the
• Youth are craving an alternative population is legally old
to hard liquors and developing enough to drink (25 yrs. old).
a more refined taste. • 400 million persons are 18
• Wine is becoming more years old or younger.
acceptable to women and youth. • Poor awareness of wine and
• Wine is considered to be Health infrastructure.
beneficial. • Lack of Entrepreneurship.
Opportunities Threat
• 100 million persons will be • The Indian constitution

legally allowed to drink discourages alcohol
alcohol (25 yrs. old) in the next consumption.
5 years. • Wine viewed as a “sin” by
• Supermarkets are emerging to some ians still prefer whisky.
support wine distribution • Advertising for alcoholic
infrastructure. beverages is banned.
• Domestic market with • Domestic wine production is
increasing disposable income. Coddled by state govt.
• Growing tourism industry. • Predominance by big wineries
in market.
Weaknesses
 Wine remains an elite taste and most of the people prefer hard liquor taste.
 India being geographically a hot tropical region, making and storage of wine in
such hot condition is difficult compared to cold tropical region countries.
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 Due to lack of proper infrastructure, wine is difficult to store in India. Wine
required cellars and refrigeration for storage purpose in which Indian wine industry
is lacking.
 In India, less than 50 percent of the total population is legally old enough to drink
(25 yrs. old) as per the government rules in various states.

 In India, 400 million persons are 18 years old or younger and they are legally not
allowed to sallow wine.

 Due to poor awareness of wine and infrastructure, people preferring other drinks.
 Most of the wine entrepreneurs are from farmer background and lack an
accomplished professional businessman ship in them. Hence there are very few
innovative business concepts are implemented.
Opportunities
 In the next 5 years, 100 million persons will be legally allowed to drink alcohol (25
yrs. old). This will give rise to the consumption volume of wine.
 In tire I, II cities, Supermarkets are emerging. This will give support to wine
distribution in an effective way.

 Domestic market is rising and because of increasing disposable income of people.
 Growing tourism industry is also a factor which can contribute significantly
towards growth of wine industry.

 Through merger, joint venture, or strategic alliance the size of the market can be
increased.
 Market trends are changing and giving new opportunities to do more profitable
business.
 New technologies are coming up and improving in productivity.
 Social changing is also an opportunities to tap more number of consumers for wine
market.
 Tourism in India is growing and there is much scope for wine tourism in India.
Since wine is more preferred by foreigners, there are much possible opportunities.
Threats
 India is known for its traditional cultures and values. These values of India do not
allow taking wine and it consider as a bad habit. The Indian constitution
discourages alcohol consumption.
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 Wine consumption is viewed as a “sin” by many people so it may hamper the
business of wine market.

 Indians still prefer whisky rather than wine.
 Promotional activities for alcoholic beverages are banned in India and specifically
in various states.
 Domestic wine production is coddled by state governments.
 Few big size wineries I India are working predominantly by suppressing other
wineries; hence it is quite possible that in future, they won’t allow growing small
scale wineries.
Even though the Indian wine industry has a high growth rate but there are many
challenges for its development. The biggest obstacle can be reforming government
policies for the wine industry. Infrastructure limitations are also great issues in this
sector that should be addressed.
4.8.2 PORTER Analysis

Porter's Five Forces model is basically used to analyze attractiveness of an industry
structure. This strategic model provides analysis of competitive position of an
industry. In this model, there are five forces including supplier, buyer, substitution,
new entrant and competition which explain about the industry position. Now
economists are considering government as the sixth force in below model.
Power of suppliers: Medium
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 Varietal
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 skeptical 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
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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.
Figure No.:4.41: Porter's Five Forces Model
Power of Consumers: High

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.
Threat of New Entrants: Low

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
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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.
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: High

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 investment.
4.8.3 PESTEL Analysis

PESTEL model is to provide a framework for understanding the macro environment
in which the drinks industry operates. PEST analysis identifies the political,
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economic, socio-cultural, technological, environmental and legal influences in the
industry.
Figure No.:4.42: PESTEL Analysis of Wine Industry
Political Economic Sociological
 Policies vary when  Income of middle  As per Indian values,

when ruling party class has increased and alcohol drinking is
changes in state as hence expenditure. unacceptable.
well as in Centre.  Globalization helped  Indians are followers
 Due to frequent Indian middle class to of British people’s
changes in policies, interact globally. hard liquor drinking
business changes.  Middle class will be habit.
 Central govt. wine great contributor in  Now days, being
taxation policy wine industry growth. connected globally,
protects wine wine is preferred.
industry.  Due to social liberty
 Due to support by of woman and self-
state govt. to income, wine
wineries, funds are consumption by
made available. woman is increased.
 Some stateshas
banned wine
considering it as
liquor.
Technological Environmental Legal
 Indian consumer  Increased focus on  Post Licensing Act
prefers sweet tinge sustainability agenda 2003 &private
based wine. and Corporate Social security Industries
 Indian wine Responsibility of Act 2003, beer
makers have Corporations. orders and other
developed ample  Environmental changes to
number of wine impact affects wine competition law in
brands to select. business. 1990s,wine business
 India sale young  Environmental has become simpler.
wine only. legislation, energy  Advertising laws
 Packaging and availability and cost, has become liberal.
bottling of wine is energy consumption  Most wine business
attractive. affects industry affecting laws such
 Influence of performance. as employment
ecommerce laws, competition
affected wine laws, health &
business in positive safety laws, regional
way. legislation, taxation
(VAT, Social),
subsidy policy and
foreign trade etc. are
eased.
Determination of PESTEL model is as follows:
320
Political Factors
Political factors affect the way of doing business in an industry. The ruling party
changes and so as the policies related to the business. Now the central government has
changed the taxation policy to encourage the wine business. in some states, local
government has also taken initiatives for funding and infrastructure supports to the
wineries.
Economic Factors
The rising incomes of the middle class family in India and their growing exposure to
the western culture are some of the important factors. In coming years, Indian middle
class will be considered as a great contributor in the wine industry growth because of
its growing consumption. Now young mass are earning at an earlier age and highly
influencing by the western culture. At a young age they want to adopt a sophisticated
life style and consuming alcohol for fun. The price fluctuation can be dictated by
global commodity markets which gives multi-nationals an advantage to the wine
market. Increasing price differential between on and off trade is also a factor for
growth of Indian market. There are other factors which decided the growth of industry
such as business cycles, GNP trends, interest rates, inflation, unemployment,
disposable income, wage cost, and devaluation.
Socio - cultural Factors

In India, earlier wine was not considered as the first choice of drink because of the
Indian traditional culture. But now the time has changed and so as the culture of the
society in India. At current scenario, the rate of wine sales is increasing each year by
34 percent. The wine industry in India is an emerging market. Indians has adopted the
habits of British people of having strong drink. Before the meals, Indian loves to
enjoy a drink. Wine is now considered as a fashionable drink among young generation
mostly in urbanites. The young executives working in the international corporations,
they take wine through wine testing and classes. This is done to impress colleagues
and clients at the time of corporate dinner. Now this practice has become the
important part of the corporate people. Earlier, in our Indian culture, taking wine was
acceptable for a male person only. But in the 21st century now more numbers of
women are part of the corporations whether it is international or domestic. Young
professional women are the significant art of the Indian wine market. Now drinking is
321
built into the social fabric. The recent upsurge in café culture is also encouraging
youth to consume alcohol. Increase in eating out and in holidaying overseas is also
impacting on consumption of wine. Drinking wine is giving a great snob value.
Technological Factors
Packaging and bottling of the wine is very attractive. Influence of the Internet and
ecommerce has affected the business of the wine in a positive way.
From the wine park people can order their preferred wine easily.
Environment Factors
Now there is increasing focus on the sustainability agenda and corporate social
responsibility by the corporations. Environmental impacts affect the business of the
wine. The other factors are environmental legislation, energy availability and cost,
energy consumption which can affect the industry performance.
Legal Factors
There are various legal factors involved in the business of wine. After coming of
licensing Act 2003, private Security Industries Act 2003, beer orders and other
changes to Competition Law in the 1990s, the business of wine has become simpler.
Advertising laws has become liberal in some extent. The other legal factors which
affect the wine business are employment laws, competition laws, health and safety
laws, regional legislation, taxation (VAT, Social), subsidy policy, and foreign trade
and investment regulations.
REFERENCES
322
1. Thadani, K., Belwal, T., Mittal, N. &Ganguli, S. (2010). Alcoholic beverages:
Segmentation and buying behavior. PGCBM, Thane center. 10-11
2. Gokarn, S. (2011). Cutting Edge Issues of Marketing Wine in India. Create Space
Publisher, India. 26-30
3. Site visit
4. Tiwari, R. (2013). The Great Indian Wine Story. Ambrosia. 37.
323

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Chapter IV

ANALYSIS OF MAHARASHTRA WINE

Figure No.4.1:Share of Alcohol Consumption in India

(Source: Indian alcoholic beverages report by Mindpower solutions)

India is a rapidly emerging wine economy in terms of both production and

Figure No.:4.2: Map of Grape Wine Regions in India

4.1.2 Indian Wine Market Segmentation

Sparkling wine Vermouth wine

(Source: Cutting edge issues of Wine industry by Mr. ShyamGokarn)

4.1.2.2 Location Wise

Figure No.4.4: State wise Wine Consumption in India

(Source: Cutting edge issues of Wine industry by Mr. ShyamGokarn)

Table no. 4.2: Year wise Wine Consumption in India

(Source: Wine in India, a research report by Euromonitor International)

Figure No.:4.5: Year wise Wine Consumption in India

(Source: Wine in India, a research report by Euromonitor International)

Classification Up to year 2013 Year 2020 estimated

Wine consumption 1.1 crore liters 7.2 crore liters

(Source: Details from All India Wine Producer Association, Nashik)

4.2 Wine Industry in Maharashtra

4.3 Wine Production in Maharashtra

Figure No.:4.7: Year wise Wine production in Maharashtra

4.3.2 Wine Wise

Figure No.:4.8: Wine wise Production in Maharashtra

4.3.3 Wine Industry Investment in Maharashtra

Table No.:4.6: Investment in Wineries in Maharashtra

Figure No.:4.9: Investment of Wineries in Maharashtra

4.3.4 Major Players in Wine Production & Competition

4.3.4.2 Sula Vineyards

4.3.4.3 Grover Vineyards

4.3.4.5 Vinsura Wines (Sankalp Winery Pvt. Ltd. )

Table No.:4.7: Rationale for Selection of Wineries for Research

Production (in Liters) Sales (in Liters)

Table No.:4.9: Production &Sales of M/s Rajdheer Wines Pvt. Ltd.

Figure No.:4:11: Production &Sales of M/s Rajdheer Wines Pvt. Ltd.

Production (in Liters) Sales (in Liters)

Table No.:4.10: Production &Sales of M/s ND Wines Pvt. Ltd.

Figure No.:4.12:Production & Sales of M/s ND Wines Pvt. Ltd.

Production (in Liters) Sales (in Liters)

Production (in Liters) Sales (in Liters)

Table No.:4.12:Production &Sales of M/s India Food Co. Pvt. Ltd.

Production (in Liters) Sales (in Liters)

Figure No.:4.15: Production & Sales of M/s A. D. Pvt. Ltd.

Production (in Liters) Sales (in Liters)

4.3.6.7 M/s. Red Wing Wines Pvt. Ltd.

Production (in Liters) Sales (in Liters)

4.3.6.8 . M/s. Grapessy Wines & Beverages

Table No.:4.15: Production &Sales of M/s GrapessyWines & Beverages

Production ( in Liters) Sales (in Liters)

4.3.6.9 M/s. Neera Valley Grape Wines Pvt. Ltd.

Production ( in Liters) Sales (in Liters)

Figure No.:4.19: Production &Sales of M/s Four Seasons Wines Ltd.

Production ( in Liters) Sales (in Liters)

Table No.:4.20: Production &Sales of Grape Processing and Research Institute.

Production ( in Liters) Sales ( in Liters)

Production ( in Liters) Sales ( in Liters)

Production (in Liters) Sales (in Liters)

4.3.6.14 M/s Sumaru Health Wines Pvt. Ltd.