So, there is plenty of bulk wine available for as low as Rs. 20 a litre. With lower import duties of only 100% on bulk wines it makes sense to import them, pay duty and still compete with domestic producers or even with imported wines under duty free license since all such wines still encounter excise duty add-on of up to Rs. 150 a bottle.

Sula have created their national brand, Satori with the import of bulk, quaffable Merlot from Santa Rita, Chile. Industry pioneer and leader Indage has been contracting will all wine producing countries including France, South Africa, Italy, Australia to give the wine lovers a ‘taste' of imported wines even during the days of license regime, against their export commitments. One producer has been bottling bulk wine and merrily supplying his entire production within Goa.

There has been one spoil sport though. In the new excise policy, progressive and pro-active Maharashtra State Government saw through this game plan and in order to help the farmers, increased the excise on bulk wine from Rs. 7 Rs. 100 per litre, making bulk wine imports less remunerative though still viable. The grape growers lobby in Maharashtra is very strong. In a meeting yesterday with Mr. Rajeev Samant, the debonair owner of Sula Vineyards in Nashik and Dindori in Maharashtra he informed me, ‘anyone trying to bottle and market imported bulk wine is welcome but must do his homework thoroughly. The growers and government of Maharashtra will be watching the situation like a hawk and any action that goes against the interest of local growers will be strongly resisted.' ‘People who propose bottling out of state must be prepared to be shut out by the Maharashtra market through various possible sanctions' he opined.

Biggest sufferers will naturally be the grower wine makers. Coming barely with grips in handling the production and quality issues in a nascent industry, still grappling with marketing problems due to their inability to come under some sort of a joint banner to match the marketing clout of Indages and the sophistication of Sulas and Grovers, they may be left with huge stocks of unsold wine, perishing grapes and shattered dreams.

The fluidity and uncertainty of the current market scenario does not prevent several new proposals like Venky's fermenting slowly and quietly. Seagram is already known to have entered the fray. Every week I hear of some big banner, especially in Australia and France planning to set up bottling bulk wine in India- from Kashmir, Uttaranchal and Himachal to Rajasthan, Haryana, Andhra, Goa and of course, Maharashtra and Karnataka. In a market where the growth is barely 25-30% and where people laugh at my suggested desirable growth of 50-60% with proper wine education and with a possible progressive government attitude how many of these projects will flourish in the miniscule market of 4 mill. litres is anyone's guess.

So, whether Venky's is really going to rock or hit the rock is something we shall wait and watch. Stay tuned for further developments. For any bricks or bouquets, views or news on the subject click here.

Subhash Arora

July 28, 2005

arora@delhiwineclub.com

For comments from Mr. Kapil Grover, Director, Grover Vineyards Click here