Currently, short of 1% of the overall domestic spirits market, the wine market is already growing at a rapid 20-30%. But the entry of Diageo is expected to accelarate this growth.
In an industry that is dominated by three players - Indage, Sula Wines and Grover Wines - who command 90% market share, the entry of USL and Diageo will significantly change the demographics. "They will create a ripple or two in the established market. However, largely they will create their own consumer base," an industry expert said.