Nitin Desai, CMD, Vinsura Vineries Pvt Ltd, discusses the rising demand for wine in India in an interaction with Craig Fonseca

Today, the influence of the West plays a huge role in shaping consumer tastes, be it food, clothing or services. The past few years have seen a steep rise in demand and consumption of imported as well as domestic wines. A number of Indian wine companies have entered this lucrative market and the wines from the Nashik district of Maharashtra are well-known.



Give us a small brief on Vinsura Wines.
Vinsura Wines are prime-quality wines from Nashik, Maharashtra, India. The brand is a product of Sankalp Winery Pvt. Ltd, which was formed by passionate horticulturists who brought a dream from France to Vinchur Wine Park. Itís a mid-sized business with turnover of around 25,000 cases per year. The brand strives to go beyond the simple act of finding commercially viable wines, insisting that there are also wines which appeal to consumers collectively and individually.

Vinsuraís distribution network is spread widely across the country. Mumbai has 20 per cent, the rest of Maharashtra 40 per cent, Goa 7-8 per cent, Delhi, Chandigarh and Punjab 10-12 per cent, Calcutta is 8-9 per cent and Bangalore-Pondicherry 15 per cent

Vinsura was coined to mean Sura, of Vinchur. Vinchur is a small hamlet adjoining the Wine Park, and Sura in Sanskrit means wine. Thus, the brand name Vinsura was chosen considering the location of the winery and the ancient nomenclature of this beverage,

Essentially being a non-wine-drinking country, there has been a steep growth in the demand for wines in India. To what do you attribute this growth?
The changing habits of Indians in drinking have, among other things, changed the fortunes of the wine industry in India. Both the Indian wine market and the indigenous wine industry are witnessing tremendous growth. Favourable and promotional government policies, higher disposable incomes and an increase in the number of foreign tourists are some of the reasons for such growth. Also, the perception of wine being a womanís drink is changing to that of wine being a sign of urban sophistication. The present consumption of wine in India is very low, with the average per capita consumption at 4.6 ml. However, considering that about a decade earlier, a market for wines did not exist at all, the developments are positive. The wine market in India has been growing at around 30 per cent annually over the last ten years.

Wines are generally chosen to complement food. Do you think the demand for wines has increased the demand for certain foods or vice versa?
It is partially true because selections of appropriate wine and food pairings provide operators with opportunities to increase customer gastronomic satisfaction as part of the dining experience. Wine with suitable food also makes meals unforgettable.

Since wines are usually produced in one region, what distribution issues does one see in a huge country like India? How does one adapt the supply chain in these situations?
India followed a system of non-automatic import licensing (quantitative restrictions) for Bottled-in-origin (BIO) wines and spirits until April 2001. Under that system, strictly limited quantities of BIO products were allowed to be imported for sale in certain tourist hotels. Later, the import of liquors including wines was allowed under the Open General Licence (OGL). No import licence is required for wine and anyone can import wines into a Customs Bonded Warehouse. However, each label, each size of bottle and each manufacturer has to be registered with the Department of Excise & Customs against a fee. A distributor has to obtain a license to distribute liquors. The industry faces a threat of prohibition in several states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc. The liquor industry in India is highly governmentregulated in terms of constraints on manufacturing and storage as well as distribution.

The imported wines and spirits Bottled-in-India (BII) and BIO are not systematically exempt from the plethora of different sales taxes, value added taxes, and other indirect taxes applied by Indian states. The government aims at uniform state-level taxation on alcoholic beverages across the country and therefore has plans for a new state excise policy. In a recent move that could make both imported as well as locally-made alcohol cheaper, the Central Government has prescribed a maximum state excise of 25 per cent for wine in various states.

The Food Safety and Standards Act, 2006 applicable to all of India, has been enacted by the Union Government. The term ëfoodí in the new law has been defined to include alcoholic drinks, among other items. Once it comes into force, all provisions made under the Act would become applicable to alcoholic drinks as well. The present statute, The Prevention of Food Adulteration Act, 1954, applicable to food items in India, does not include alcoholic drinks like ëwineí as a food item. The government is actively considering setting up an Indian Wine Board under the Ministry of Food Processing Industries at the Central level to promote the domestic wine industry.

Wine has travelled a long way through time and the occasion is ripe for this drink to claim the position it deserves in India. If the policies are set in tune, the status of wine will definitely get a great boost in the Indian scenario.



Vinsura Vineries: Quick Facts

􀂔 One of the leading producers of red and white wines in India

􀂔 Located in Nashik the Grape Valley of India

􀂔 Has its own vineyards and good infrastructure to meet any demand

􀂔 Long years of experience in the wine business

􀂔 Operates 250 acres of vineyards. The land on which the vineyards are situated is owned by directors, shareholders and relatives of Vinsura Group.

􀂔 Has capacity of 800+ tonne (6 lakh litres)

􀂔 Offers a wide range of exclusive wines