14 January 2014 - by -
The potential of the Indian wine market is such that international wine judges and foreign investors are starting to take note.
Even though India’s GDP growth rate is down to 4.99%, the slowest for almost a decade (see Table 1 – GDP and Interest Rate in India, 2006-2013), their wine industry has witnessed an average annual growth of 25-30% during the noughties according to a report published by the Indian Grape Processing Board(IGPB), an industry body. Karishma Grover, the third generation of the wellrespected Indian wine family, explains that the demand-inflected necessity to expand would endure even if the Indian wine industry’s growth has “declined” to a mere annual 20% by 2013.
For Bangalore based Grover’s Vineyards to keep their position of number one quality associated brand in India and to satisfy customer demand, they had to acquire Zampa, a boutique winery in Maharashtra state’s Nashik district.
An even more astounding growth has turned Sula Vineyards, the brainchild of Silicon Valley groomed businessman Rajeev Samant, into the largest winery just slightly over ten years with its 6.5 million bottle-per-year production. The seismic transformation has seen casualties too.
Just think of Omar Khayyam, which used to be the bestknown traditional method Indian sparkling wine until Chateau Indage – whose production accounted for 43% of all Indian wines before it was delisted from the Bombay Stock Exchange – went into liquidation in late 2011.
The potential of the Indian market does not go unnoticed by foreign investors either; most notably this year Diageo has increased its packet of shares to 25.02% in United Spirits Ltd., owner of Four Seasons, a winery in the Pune district of Maharashtra state.
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