Wine consumption to double in India by 2010
More Indians will consume wine in the next two years. Industry body Assocham has estimated that the country’s wine consumption will nearly double to 9 million litres, from the current 5 million litres, by 2010. “India’s wine market is likely to grow at 25% in the next two years due to rising consumption, not only among youngsters but also among the aged,” said chamber President Sajjan Jindal.Assocham has estimated that the Indian wine market is approximately 5 million litres in terms of volume and Rs 500 crore in terms of value. Wine sales in India were 8,20,000 cases in 2007-08. Major cities like Mumbai, Delhi, Chennai, Kolkata, Pune, Bangalore and Hyderabad account for 80% of the demand for wine, the chamber said. Rising disposable incomes, teeming under 30-years population, influence of the Western World and measures adopted by the government aimed at weaning the population off stronger drinks such as spirits have aided the growth of the wine industry. Many state governments have reduced duties on wine, eased restrictions on distribution allowing wine to be sold in supermarkets and have provided incentives for wineries to establish new facilities, the chamber said.The cost for setting up a wine plant with capacity of 1 lakh litres in India is about Rs 10-15 million. The favourable conditions have drawn top drinks makers such as Diageo, Pernod Ricard, LVMH’s Moet Hennessey and SABMiller to India, the chamber added.Assocham has suggested that wine promoters should grow high-quality grapes and target tier II and tier III cities to increase the country’s total wine consumption. The chamber has also recommended the government to support the wine industry by creating infrastructure, protection and subsidisation, reduction in rates, better methods of sales promotion and classification of Indian wine regions.
Labels: India Wine Industry