Domestic wine market will grow around 25%% per annum to touch around 9
million litres by 2010 from current estimated level of over 5 million
bottles a year with major cities like Mumbai, Delhi/NCR, Chennai,
Kolkata, Pune, Bangalore and Hyderabad producing a good deal of wine
consumers, according to The Associated Chambers of Commerce and
Industry of India (ASSOCHAM).

In a ASSOCHAM Paper on “Wine Consumption in India”, Chamber President,
Mr. Sajjan Jindal said, “India's wine market is currently growing with
20%% but likely to grow at 25%% in next 2 years in view of rising
consumption wine patterns not only among youngsters but equally so in
aged group”.

The demand for wine, nearly 80%% is accounted for by major cities of
New Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore (41%% of the
wine quaffed in India is consumed in Western India followed by the
North at 29%%). Around 63%% of the volume sales of wine are through off-
trade channel in five-star hotels, pubs and bar-restaurants. Now even
the emerging tier II cities working professionals and younger
generation are also consuming wines a lot.

Mr. Jindal pointed out projects that various factors could amount to
rising wine consumption in India which include a large teeming
population under 30 years fold and estimated around 650 million will
witness attitudinal shift in alcohol consumption and shift to develop
a penchant for wine. Secondly, the rising disposable incomes among
the people imply that a greater part of the population can afford such
products.

Thirdly, the influence of the Western World is pushing the Indian
youth to change their lifestyle and standards of living. Fourthly,
measures and pressures adopted by the government aimed at weaning the
population off stronger and more harmful drinks like spirits have
aided growth of the wine industry. Many state governments have reduced
duties on wine, eased restrictions on distribution allowing wine to be
sold in supermarkets and have provided incentives for wineries to
establish new facilities.

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