Jagatjit Ind plans foray into wines

Kavita K Bhaskaran

New Delhi, May 7: Jagatjit Industries Ltd (JIL), a leading player in the Indian Made Foreign Liquor (IMFL) segment, is planning to foray into wines.

The company proposes to start importing international brands of wines into the country by August 2001 for which it is negotiating with wine makers from France, South Africa, United States and Argentina.

A senior official of the company told The Financial Express: “The market is opening to international brands of wine and spirits. Keeping in mind the changing scenario we have to increase our product portfolio, therefore we have decided to foray into the wine segment,” adding that despite the current high level of custom duty it makes good business sense in the long run.

The official said high custom duty rate could act as a deterrent initially. “The government will sooner or later reduce the duty rate and there will be demand for wine,” he said.

Currently, wine has a small and niche market mainly because of lack of awareness and brands but things will change with every major international brand coming to India, he added.

“Our analysis of the market says that the Indian wine market will grow fast in the next couple of years and will be a highly profitable segment. It will not only be lucrative but competitive too with wines being available in all the segments — regular to premium.”

JIL’s plan to introduce a variety of wines for customers with different buying capacities and will also look at launching of semi-premium and sub-premium brands.

The company plans to capitalise on its strong market network for selling wines. The official said: “Sales and marketing is very important for any company in the liquor segment.

We have a strong distribution network spread across the country. It is this network which is drawing the foreign wine makers to us.”

JIL is one of the largest IMFL producers in the country. The company’s prominent brands are Aristocrat whiskey, Aristocrat Premium malt whiskey (ACP), Bonnie Scot Special malted whiskey and Binnie’s range of products.

JIL also produces other beverages like rum, gin, vodka, and brandy under the Aristocrat umbrella.