TABLE OF CONTENTS
1. Indian Wine Industry Market Introduction 2. Indian Wine Government Licensing and Regulations 3. Indian Wine Market Size, FY’2005-FY’2010 4. Indian Wine Market Segmentation 4.1. By Product, FY’2010 4.2. By Place, FY’2010 4.3. by Type of trade, FY’2010 5. Indian Wine Industry Trends and Developments 6. Indian Wine Market Competitive Landscape 7. Indian Wine Market Future Outlook 7.1. Cause and Effect Relationship between dependent and independent factors prevailing in Indian Wine Industry 7.2. Indian Wine Industry Projections, FY’2011 – FY’2015 8. India Macro Economic Indicators: Current and Projections 8.1. Population of 20 years and above, 2005-2015 8.2. Consumer Expenditure on Food, Beverage and Tobacco, 2007-2015 9. Appendix 9.1. Market Definition 9.2. Abbreviations 9.3. Research Methodology Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Scenario Analysis Final Conclusion 9.4. Disclaimer
2
LIST OF FIGURES
Figure 1: Indian Wine Market Consumption in Million Cases, and Consumption per Capita in Milliliters, FY’2005-FY’2010
Figure 2: Indian Wine Industry Market Consumption by Product Type in Percentage, FY’2010
Figure 3: Indian Wine Market Consumption by Place, in Percentage, FY’2010
Figure 4: Indian Wine Sales by Type of Trade, in Percentage, FY’2010
Figure 5: Wines Manufacturing Companies’ Market Share in India in Percentage, FY’2010 Figure 6: Indian Wine Industry Projections in terms of Consumption in Million Cases, FY’2011-FY’2015
Figure 7: Indian Wine Industry Projections in terms of Consumption per Capita in Milliliters, FY’2011-FY’2015
Figure 8: Population of 20 years and above in Million, 2005-2015 Figure 9: Consumer Expenditure on Food, Beverage and Tobacco in USD Million, 2007- 2015
3
LIST OF TABLES
Table 1: Indian Governments’ Alcoholic Beverages and Wine Regulations Present Scenario and Impact
Table 2: Wines Manufacturing Companies’ Sales in India in Million Cases, FY’2010
Table 3: Competitive Landscape of Major Players in the Indian Wine Industry Table 4: Cause and Effect Relationship Analysis between Industry Factors and Expected Wine Market Prospects Table 5: Indian Wine Industry Projections in terms of Consumption in Million Cases, FY’2011-FY’2015
Table 6: Correlation Matrix
Table 7: Regression Coefficients Output
4
INDIAN WINE MARKET SIZE, FY’2005-FY’2010
Over the past 5 years, wine consumption has grown at a rapid pace except in FY’2009. In 2009 the wine industry suffered a drastic slowdown due to the global economic crisis, inflation, poor monsoon in Mumbai, Government Taxes and November 26, 2008 terrorist attack on Mumbai. The terrorist attack caused a huge setback in the tourism industry, which led to the decrease in alcohol consumption as tourists are the major consumers of wine. Wine consumption has grown at a stupendous CAGR of 25.1% in the last 5 years from consumption of 0.62 million in FY’2005 to ~ million cases in FY’2010. The per capita consumption of wine was ~ milliliters in FY’2010 which has grown at a CAGR of 23.2%.
Figure: Indian Wine Market Consumption in Million Cases, and Consumption per Capita in Milliliters, FY’2005-FY’2010
2.0 16.0
1.8 14.0 1.6 12.0 1.4 1.2 10.0 1.0 8.0
0.8 6.0 0.6
Consumption (Million Cases) 4.0 0.4
0.2 2.0 Consumption per Capita (Millilitres) 0.0 0.0 FY'2005 FY'2006 FY'2007 FY'2008 FY'2009 FY'2010
Indian Wine Consumption Consumption per Capita
Source, AM Mindpower Solutions
5
INDIAN WINE MARKET SEGMENTATION BY PRODUCT, FY’2010
The Wine industry has been divided into 5 segments based on the type of wine i.e., Red Wine, White Wine, Sparkling Wine, Rose Wine and Vermouth Wine. Red wine is consumed the most, followed by white wine, sparkling wine, rose wine and vermouth wine. Red wine is the most consumed type of wine in India. It accounts for more than half, i.e. ~% of the total wine consumed in India. White wine is also following it closely, and is positioned as the second most consumed wine in India with a consumption share of ~%. Sparkling wine or champagne is the third largest wine segment with the wine consumption accounting for ~% in India. Champagne Red wine is the most consumed wine consumption has mostly been limited due to the in India accounting for ~% of the total perception and positioning as a celebration or a wine consumption in India, followed special occasion drink. Rose wine is the fourth by white wine with the market share largest wine consumed in India with a market share of ~% of ~%.
Figure: Indian Wine Industry Market Consumption by Product Type in Percentage, FY’2010 FY'2010
Red wine
White Wine
Sparkling Wine
Rose wine
Vermouth Wine
Source: AM Mindpower Solutions
6
INDIAN WINE MARKET COMPETITIVE LANDSCAPE
The Indian Wine industry is dominated by domestic players. The main players include Chateau Indage, Sula Vineyards and Grover Vineyards. They contribute ~ %, ~ %, ~ % respectively in the domestic premium segment in FY’2010. These companies have several brands under their portfolio, offering several imported and exotic wines. These companies are importing wines from other countries prominently France, Italy and Australia and are gradually establishing their presence globally through increased exports.
Figure: Wines Manufacturing Companies’ Market Share in India in Percentage, FY’2010 FY'2010
Chateau Indage
Sula Vineyards
Grover Vineyards
Vinsura
Vintage Wines
Others
Table: Wines Manufacturing Companies’ Sales in India in Million Cases, FY’2010
Company FY’2010 Sales (Million Cases)
Chateau Indage
Sula Vineyards
Grover Vineyards
Vinsura
Vintage Wines
Others
7
Table: Competitive Landscape of Major Players in the Indian Wine Industry
Key Business Segments Geographical Major Players Business Overview (Revenue Contribution) Reach
. . .
. . .
. . .
Source: Company Reports, AM Mindpower Solutions
1.1. CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN INDIAN WINE INDUSTRY
Table 1: Cause and Effect Relationship Analysis between Industry Factors and Expected Wine Market Prospects
Industry Factors Market Impact Comments
Social acceptance . towards alcohol consumption
Increasing tourist . arrivals
Several States . government support
Increase in working . women population
Source: AM Mindpower Solutions
8
DISCLAIMER
The research reports provided by AM Mindpower Solutions are for the personal information of the authorized recipient and is not for public distribution and should not be reproduced or redistributed without prior permission. You are permitted to print or download extracts from this material for your personal use only. None of this material may be used for any commercial or public use. The information provided in the research documents is from publicly available data and other sources, which are reliable. Efforts are made to try and ensure accuracy of data. With respect to documents available, neither the company nor any of its employees makes any warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use will not infringe privately owned rights. The report also includes analysis and views expressed by our research team. The research reports are purely for information purposes. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in the research documents and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information. AM Mindpower Solutions will not accept returns of reports once dispatched due to the confidentiality of information provided in our reports. In case, a report qualify for return, we will issue a credit, minus shipping charges, of equal value to the original purchase price, toward a future purchase—no refunds. The decision about whether the product return can be accepted or not is solely at our discretion. Any dispute will be subject to laws of India and exclusive jurisdiction of Indian Courts.
No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of AM Mindpower Solutions and any payments of a specified fee. Requests to republish any material may be sent to us.
9