Feasibility Report(wine Co.)

BUSINESS COMMUNICATION

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PRESENTED TO:-Mrs. MANISHA MENDIRATTA

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PRESENTED BY :- ANSHUL,SANJEEV, VISHAL

WINE 

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WINE IS AN ALCOHOLIC BEVERAGE WHICH IS PRODUCED BY THE FERMENTATION OF FRESHLY GATHERED GRAPE JUICE. GENERALLY THESE ARE OF 2 TYPE STILL WINES(without carbonation) SPARKLING WINES(carbonated)

MAJOR PLALYERS There are three major players in the Indian wine industry which dominate 90% of the total market share .These are : Indage wine group Sula wine group Grover wine group Vintage Wines UB Group

Indage Wines 

Based in Narayangaon - on the Pune-Nashik Road, is counted amongst the leading Indian wine brands, both in volume as well as valuation. 'Marquise de Pompadour' brand of Indage was launched in 1986, while the famous 'Chantilli' came out in the year 1989. The wine brand was the first to make wines that were 'bottled in

Sula Wines 

Launched in the year 2000. It was the first marketing- savvy wine company in India and had initially positioned itself in the premium segment, giving high quality and selling at high price. However, with time, the wine company has entered all the price ranges and product segments

Grover Vineyards 

The Bangalore-based winery, was established in the year 1989. The first wine under the wine brand came out in 1992 and since that time, the company has endeavored to maintain its excellent quality. One its premier red wine brands, La Reserve (a Cabernet Shiraz), was declared the best new world red wine in the August 1995 issue of Decanter magazine, by Steven Spurrier. It also a low-cost wine, known as

VARIOUS PRODUCTS THEY OFFER        

Marquise de Pompadour Chantilli La Reserve Chenin Blanc SULA CABERNET SHIRAZ MADERA ROSÉ HAMMER VIN BALLET

Present Scenario  

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India ranks 77th in wine consumption, Food processing industry status granted to wineries The Indian wine markets is valued at $100 million and expected to grow by 25-30 per cent by 2010, There is growing awareness about the wine as a product in the domestic market. India- 38 wineries Maharashtra -36 wineries

Wine Standing-Indian Markets Up to 80% of the Demand

Wine Wine consumpti consumpti on per on per person person

SIZE & GROWTH 

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The wine industry has witnessed a CAGR of over 25% over the last 3 years in the premium wine segment mainly fuelled by the strong growth in the domestic wine consumption. The industry is not very capital intensive, as it requires around Rs.10-15 million to setup a Wine plant with a capacity of 100,000 liters. The key raw materials such as grapes, bottles, and corks account for approximately 20% of the total costs and are higher than the international norms. The industry has low entry barriers because of its low capital-intensive nature however the industry is under pressure for profits due to high marketing costs and low volumes. With demand increasing at a steady pace, the industry is expected to go through a consolidation phase. The fortunes of the industry are linked to the trend in the changing drinking habits of Indians, higher disposable incomes, growth in the foreign tourists, and government regulations and policies. The Indian wineries have planned expansion plans to meet the increasing demand. There is a strong growth in the imported wine market with Indian importers importing hundreds of brands from countries like France, Australia, US to Bulgaria. Some of the well-known wine producers are also present in India like Moet Hennessey, E&J Gallo.

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VINYARD CULTIVATION IN INDIA

Grape is grown under a variety of soil and climatic conditions in three distinct agroclimatic zones i.e sub-tropical, hot tropical and mild tropical climatic regions. Maharastra- Nashik, Sangli, Baramati, Narayangaon, Kohlapur Karnataka- Bangalore, Bijapur, Hubli Andhra Pradesh- Hyderabad About 70% of the 150,000 acres of vineyards are in Maharashtra - and 95% of the grapes produced are table grapes.

TYPES OF GRAPES RED Grapes Bangalore Blue, Sharad seedless  WHITE-Thomson Seedless Anab-e-Shahi , Arkawati, Arka Shyam q RED Grapes Cabernet Sauvignon, Pinot Noir , Shiraz (Syrah),Merlot Zinfandel q WHITE Grapes Chardonnay , Clairette , Chenin Blanc , Ugni Blanc , Sauvignon Blanc  Merlot , Uni Blanc., Syn. , Muscat Hamburg 

GOVERNMENT POLICIES 

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The policy of the government towards this industry is mix Liquor companies are not allowed to advertise on tv and radio It is necessary to write the warning “drinking alcohol is injurious to health” on the product The taxes and custom duty on wine products have been reduced in recent months

GOVERNMENT POLICIES  

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State Levies & Taxes Levies vary from State-to-state - and differ on imported vs domestically bottled wines. All brands have to be registered with state excise authorities Registration fees are between Rs 5000 - 20,000 per label per year Inter-state movement of domestic wines attracts ‘export fees’ and ‘import fees’, apart from a uniform 4.0% Central Sales Tax (CST) on the total billing (not applicable to BIO wines) BIO wines generally suffer ‘special fees’ of between Rs 75 per bottle upto 33% of the landed price - in addition to sales taxes. Trade margins - about 10% for wholesale and 12 - 20

SYRAH    

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ESTABLISHED IN 1895 IN FRANCE. FRANCE’S 2ND LARGEST PRODUCERS. EXPORTS 50% OF THEIR PRODUCTION. IT PRODUCES WORLDS BEST SPARKLING WINE. THEY ALSO PRODUCE WHITE WINES AND RED WINES. PRODUCES 5 mn BOTTLES PER YEAR. ANNUAL TURNOVER OF 30 mn EUROS.

PRODUCTS OFFERED BY SYRAH       

HENKEL TROCKEN SPARKLING WINE COLUMIA CREST WHITE WINE SMITH AND HOOK BLACKSTONE SN. FRANCIS PINE RIDGE CHATEAU STE MICHELLE

IS IT FEASIBLE ? 

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YES IT IS FEASIBLE FOR THEM TO START BUSINESS IN INDIA. IDEL STATE WOULD BE MAHARASHTRA THE STATE EXEMPTS EXCISE DUTY ON THE WINES MADE IN THE MAHARASHTRA. WHILE THE WINES PRODUCED IN OTHER STATES & IMPORTED ARE IMPOSED WITH 150-200% DUTY.

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IDEL PLACE WOULD BE HILLS AROUND NASIK. AS THEY HAVE BEST CLIMATE & SOIL IN INDIA FOR THE GRAPE CULTIVATION. TEMPERATURE VARIES FROM 8`-42` C. Cabernet Sauvignon, Chenin Blanc, Chardonnay, Merlot, Pinot Noir and Uni Blanc.