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The earliest Indian wine imports were by the Moghul emperors in
the 16th century who imported Shiraz from Iran and imbibed it
from chalices. But religious sentiments and Gandhian principals
ensured it stayed moribund till recent times.
The Indian imported wine market is slated to be around 220,000
cases up by around 50,000 cases as compared to last years
figures of 1,70,000 cases. This constitutes around 20 per cent
of the total Indian wine market estimated to be over 15 million
litres. These figures do not include bulk wine imports, wines
hand-carried by passengers, and smuggled wine. Overall growth is
in the region of 30 per cent.
The number of importers of wine and spirits who were just a
handful is now touching the three digit mark given the
unprecedented demand for wine. Brindco is said to be the largest
wine importer, followed by Sonarys. In spirits, Dhall Food and
Beverages is a leading player. Many late entrants into the wine
importing business have not found it easy as the business
requires experience, expertise and good financials. However,
thanks to a growing demand for good quality spirits that has
kept the business growing. The Market will continue to evolve
and progress slowly and steadily rates as Indians would love to
taste imported products, says A. M. David, Vice President
International Division, Sultania Trade Pvt. Ltd.
This amount of wine imported is considered miniscule given the
consumption of alcoholic beverages which is in the region of 500
million cases. These figures also include the branded country
liquor. With the low base at half a per cent of total alcohol
consumption, anything between 50-60 per cent growth per year
should be achievable if the government policies are positively
tuned to wine and its health benefits and it is considered a
food product rather than spirits.
According to Vinitaly sources, France take top place (with 30
per cent of imports), followed by Australia (20 per cent) and
Italy (15 per cent) - which is achieving significant progress
thanks to the immense popularity of Italian cuisine. New Delhi
and Mumbai are the main markets.
The Director General of VeronaFiere, Giovanni Mantovani, said
"the two stopoffs in India achieved a 50% increase in buyers
compared to the previous year, a performance that explains why
it is so important to be in the right place at the right time in
order to reap the results of market of potentially enormous
dimensions." This opinion was also shared by the Director of
Wine Development Projects at Buonitalia, Giorgio Serra, who
said: "As of 2000, wine consumption has seen an annual growth
rate of 30%, the best performance in the entire alcoholic
beverage sector. In India, in short, especially among younger
generations, drinking a glass of fine wine during meals is
progressively becoming a full-scale fashion."
 However,
the market is much dependent on government policies and taxation
that can change the direction at all times. In the recent past,
government in New Delhi have had to backtrack on permission to
retail wines in supermarkets while nearby Gurgaon in UP it is
permitted.
The high cost of wines in India is on account steep import duty
(160 per cent) and stiff State taxes. Nearly 85 per cent of the
price you pay for a bottle in retail in India goes towards these
taxes. While Maharashtra has the stiffest State tax 200 per
cent on imported wine, obviously to protect the domestic wine
industry, Karnataka is one of the most wine-friendly regions in
India. There are also other hurdles to encounter. Customs
related issues and interpretation of the laws, apart from the
varying state excise policies are two of the major issues that
one faces on a constant basis. Apart from that it is the
logistics aspect especially in the case of sensitive products
like wines and liqueurs that are an irritant, says Jackie Matai,
Aspri Spirits.
Its not only wines which have to face the wrath but also other
imported liquors like Scotch. The issue of excessive imported
duty has already been a cause of concern for the Scotch Whisky
Association. And out of pressure the Indian government has
already reduced the import duties as well but it is still high
in terms of the international market standards. Imported wines
are mainly used by the hospitality industry since they can
purchase these wines duty free. However, there are many
subsidiary markets like the retail shops, which also stock top
end imported wines for their select customers. Of late, the
modern retail formats have also taken to imported wines in a
major manner.
Despite the tough conditions, imported wines will continue to be
sought after as more and more Indians are initiated into the
nuances of informed wine drinking. After all, quality never goes
out of style.
To read this section in detail and access
interviews of Vikram Dhall, A.M David, Jackie Matai, Mukul Mehra
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