On the back of growing wine consumption in India and steep import duty, Western Australia-based Howling Wolves Wine Group (HWWG) is entering into a 50:50 joint venture agreement with Indian distiller and distributor Brihans to manufacture wine in India. The newly formed company would be called Brihans Howling Wolves Wines Pvt Ltd (BHWWPL). Taking cue from the international spirit majors, Diageo and Seagram, international majors are fast setting up base in India to produce wines to tap the lucrative wine market.
This is the first time an Indian company has tied up with the international wine major to manufacture and sell foreign brands in the country.
Harshawardhan Apte, director of the BHWWPL told FE, ?We decided to take our relationship to the next level from a buyer and seller to a joint partner partnership. We would be manufacturing the wines under the brand name of Howling Wolves.?
HWWG already had a selling and distribution arrangement with Baumgarten and Wallia Pvt Ltd, (BWPL) a wholly-owned subsidiary of Brihans to sell its brand of 8 vineyards, Margaret River Claw Range and Small Batch wines in India. It has already imported and sold about 4,000 cases of wines.
The JV has already started building a 100 acres vineyard (on a plot of land owned by Brihans) in Shreepur area, about 300km south of Mumbai. The vineyard would have a capacity of 4 million cases and the company would be launching wines from the local vineyards in 2009. The work on the winery will also start soon and is expected to be operational by next year.
HWWG manufactures the brand of 8 Vineyards for the export market only and it is sold in the markets of India, Singapore, Malaysia, Thailand, Vietnam, Indonesia and China. Apte said, ?The entire production of 8 Vineyards will be shifted to India, and the production of the brand in Australia will seize. And the Indian wing would serve as the base for exports of this brand to the Asian markets.?
