anuj verma iim ranchi lvmh

7/30/2019 Anuj Verma IIM Ranchi LVMH

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Wine Market In IndiaSubmitted by :

Anuj Kumar Verma

PGDM 1st year(M 060/12)

IIM Ranchi

+91-9570061033

Introduction

Wine Market In India

Swot Analysis

Summary Queries


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Introduction

An Alcoholic beverage is a drink containing ethanol, commonly

known as Alcohol India the worlds third largest market for branded alcoholic beverages in

volume with size of 692 million cases

295 distilleries with an installed capacity of 4,200 mn litres

As per AIDA ,52% alcohol produced is consumed as beverages and the

balance 48% is used in industries and as fuel

Alcoholic beverages industry is the second largest source of revenue for the

state exchequer and is the only industry where inputs are decontrolled and

output is controlled

AlcoholBeverages

India madeforeign liquor

Domesticliquor Wine Beer


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Wine market In IndiaWine is an alcoholic beverage made from the fermentation ofgrapes with alcohol content between 8-22% In India, currently there exists about 92 wineries, mostly located around the

Pune-Nasik belt and Bangalore where Nasik is considered to have emerged aswine capital of India

Wine industry is still in the introduction phase

Indian market Size:

Value-90 million $

Volume-15.5 million Lt

Expected to reach 36 million Lts by 2015

Average growth rate of 20 %

Major players :

1) Chateau Indage

2) Sula Vineyards

3) Grover Vineyards30

2020

15

510

Major wine consuming cities (vol.)

Mumbai

Delhi

Goa

Bangalore

Punjab

rest of india


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Swot AnalysisStrengths

*Wine market growing at around 25-30 %annually over the last ten years

*Wine acts as a anti-bacterial agent againststrains & also it acts as a medicine to controlseveral diseases

*Good climatic condition for cultivation.

Weakness

*Complex tax structure and excise duties inIndia.

*Consumer attraction towards hot drinks

*Establishment of orchard is capital intensive

*Poor storage and transport facilities

Opportunity

*Export potential Increase in both domesticand international demand

*Changes in lifestyle of consumers

*Changing habits of the people have changedthe face of the Indian wine industry, which willfurther support the sector in long-term

r

Threat

*Heavy Competition from foreign brands*Grape is highly susceptible to powdery andDowney mildew

*More preference to whisky and othersubstitutes

*Huge consumption of wine leads to liver

damage and cardiovascular disease

Swot Analysis


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Summary

Wine Industry is a very lucrative industry in India with a hugepotential of growth and expansion. The recent policies of

government like liberalization in FDI further adds to this

Indian consumption pattern and concern for health adds to

the development of this industry Huge investment ,high taxation and product promotion

policies of government act as a entry barrier

The industry suffer a very aggressive competition from

premium alcoholic substitutes like whisky and scotch Industry has the potential of generating huge export revenue

bcoz of cheap labor available


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Thank you

anuj verma iim ranchi lvmh

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