The Indian
wine market, which is growing at a rate of 22 per
cent per annum, is likely to touch nine million litres
by 2010, on increased consumption due to rising income
level, industry body Associated Chambers of Commerce
and Industry of India (Assocham) said.
"Various factor such as large
teeming population under 30-year fold, rising disposable
income and the influence of western world are responsible
for increasing consumption of wines in the country,"
Assocham President Venugopal Dhoot said in a release.
Major cities in the country such
as New Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore
together accounts for nearly 80 per cent of the demand
for wine in the country, the chamber said.
Western India is the biggest consumer
of wine accounting for more than 41 per cent of the
total domestic wine market in the country followed
by north India at 29 per cent.
Five star hotels, pubs and bar-cum-restaurants
are the primary wine selling outlets in the country
as 63 per cent of the sales volume passes through
channels, the chamber said.
http://economictimes.indiatimes.com
Delhi Wine Club does not necessarily
agree with the estimates. The current level of consumption
is not indicated. The rate of growth at 22% is too
modest. Apparently, reduction of taxes, new capacity
generation of the Indian wine industry by the likes
of Seagram's, UB, Diageo, Chateau de Banyan, Nature's
Bounty does not seem to have been included. Neither
has the capacity increase of companies like Sula and
Grover with their increased portfolio been considered.
The elimination of CVD is certainly
going to boost the import of low end wines. The retail
sector sales are being liberalised. The market is
going to expand constantly in this segment. With modernisation,
the duty free shops will find much higher sales, even
though on a miniscule base.
The current growth is at a conservatively
agreed rate of 25-30%. Even at a conservative estimate,
based on last year's consumption of 7 million liters,
a min sale of 12 million and a realistic level of
13 mill litres and an optimistic estimate of double
the current estimate, i.e., 14 million litres by 2010
will not be impossible. All the socio-economi-fiscal
c factors are in favour of a faster than the current
growth, the protectionist policies of Maharashtra,
notwithstanding.
We believe the most pessimistic
and conservative figures have been given and the realistic
ones have been shunned-editor
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