Indian wine market to touch 2.4 million cases by 2020

BANGALORE: Indian wine consumption could touch 2.4 million (nine-litre) cases by 2020, London-based market researcher The IWSR says.

"Despite the difficulties of matching wine with Indian food, a cult enthusiasm is developing for wine consumption and it has become a more regular offering at launch parties, business receptions and sometimes weddings," the report says.

The wine market report, released in April, says wine is largely consumed by a small segment of well-travelled businessmen, expatriates and cosmopolitan affluent youth.

But expansion is hindered by difficulties of trading on the Indian market, such as a limited number of skilled importers, underdeveloped infrastructure and retail system as well as taxes and licences. The Indian wine market, which was in a slump for at least two years, scripted its first consolidation in March.

Bangalore-based Grover Vineyards merged its operations with Vallee De Vin, the makers of Zampa valuing the company at an estimated Rs 100 crore.

A consortium of investors holds 47% in the merged entity. The promoters of both Grover Vineyards and Vallee De Vin, as well as a few existing investors in Grover Vineyards hold the remainder. Grover Zampa Vineyards has become the second-largest vintner in India after Sula.