Low-cost wine sales up in rural India: Assocham

Low-cost wine sales up in rural India: Assocham
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First Published: Wed, Jan 02 2008. 03 38 PM IST
Updated: Wed, Jan 02 2008. 03 38 PM IST
New Delhi: Consumption of wine hitherto confined to metro cities is fast on the rise in rural India as prevalence of low cost wines, especially among the younger rural generation is growing rapidly. Record sale of Rs300 crore was registerd upto December 2007 which was expected to touch Rs500 crore by March 2008 according to an Assocham study.
Estimates drawn up by the industry chamber highlight that total countrywide wine sales would exceed Rs1400 crore in FY ‘08.
Key Findings
* Change in consumption pattern primarily due to health reasons, since large segment of younger and elderly population are deviating from old habits and are switching from hard liquor to wine
* In rural India, low-cost wine prevalence is increasingly rapidly while in urban India, imported wine availability is gradually picking up; resultantly, wine industry as a whole has been growing at an average rate of 35% as against less than 20% about 4-5 years ago
* Total wine sales upto December 2007 countrywide were estimated to be around Rs1000 crore; in the next three months this figure is likely to go up to Rs1400 crore
* Following urban youth, rural youth are taking to wine thanks to lower prices on account of low-cost wine manufacturing, especially by domestic wine manufacturers in Maharasthra, Andhra, Karnataka, Punjab, Himachal Pardesh and Jammu and Kashmir
* By end of current fiscal, over 8.5 million litre of wine sales are likely to be concluded, of which rural intake is estimated to be over 3.5 million litre; by mid December 2007, about 6.5 million litre sales were reported with rural segment low-cost wine sales estimated at 2.75 million litre approximately
* Wine sales in 2005-06 comprised 6,50,000 cases which grew by 55,000 cases in 2006-07 and by December of 2007, wine sales were estimated at around 8,00,000 cases; out of total wine sales, import element was 45% with contribution by France and Italy accounting for 15% - 30%
* While liquor industry is growing at 10-12%, wine industry is growing at more than three times and its growth is picking up as a result of demand factor despite fragmented social campaign to discourage wine and liquor consumption.
* Indians consumed nearly 220 million cases of beer and 60 million cases of whisky and other spirits in fiscal 2005-06; consumption grew by nearly 10% in 2006-07 to reach over 240 million cases of beer and about 70 million cases of whisky and other spirits
* Wine popularity in India is growing as the cost of opening and setting up wine plants with a capacity of around 1 lakh litre comes only to somewhere between Rs10-15 million mark. As a result many entrepreneurs, Indian and foreign are entering this sector.
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First Published: Wed, Jan 02 2008. 03 38 PM IST
More Topics: wine | urban youth | rural | Assocham | sales |