Wine-makers smell revival after a two-year shakeout
With annual volumes of about 1.6 million litres in 2011, wine in India is still a nascent industry. But it competes for shelf-space with the 2.2 billion litre market for spirits such as whisky because they are taxed on par, which makes selling wine a difficult proposition.
Market leader Sula, which expects to close the year with sales of 550,000 cases (each case is 9 litres) compared to 400,000 cases last year, said newer locations are coming up fast while traditional markets of Mumbai, Delhi and Bangalore are slowing down marginally. “The satellite cities of Gurgaon and Thane have witnessed very hectic growth over the last 5-6 years. Another city that's shown excellent growth is Kolkata while Kerala is growing massively,” said Rajeev Samant, founder and CEO of the Nashik-based Sula Vineyards.
The winemaker claims a marketshare of 60% in the still wine market, which excludes sales of fortified wine. “Sula’s been on different growth path to the industry. We have been gaining marketshare and we have been growing with a CAGR of 30%,” said Samant.
“In the last six months again there
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