As India prepares to cut steep import duties on European wines under the trade deal signed with the European Union (EU) last month, Indian wine brands say they are bracing for tougher competition from imported labels that could soon be priced closer to Indian bottles.
India currently levies a steep 150% duty on imported wines. Under the pact, that will be reduced to 75% and eventually to as low as 20% for premium wines and 30% for mid-range wines, according to an official release by the European Commission. The phased reductions are expected to narrow the price gap between French, Spanish and Italian wines and locally produced brands.
That narrowing price gap worries domestic winemakers, who say imported brands carry aspirational appeal even when priced similarly.
“Albeit inferior, if there’s a French wine available at a similar price to an Indian wine bottle, a person will gravitate towards choosing that,” said Gaurav Sekhri, founder of Fratelli Vineyards, in an interview with Mint.
He warned that local brands risk losing visibility before consumers even sample their products. “Ultimately, you have to get the person to try the liquid to eventually make a choice. But if they’re not even trying it…”
Sekhri said lower import duties may make it harder for Indian wines to retain shelf space as European labels look to tap India’s small but growing consumer base amid slowing alcohol consumption in their home markets.
While the tariff cuts are now a reality producers must adapt to, he acknowledged the potential fallout could extend beyond wineries to grape farmers linked to the sector. Fratelli has about 1,400 acres under active farming in Maharashtra, including Sholapur and Jambhali.
Premium pivot
To counter rising import competition, Indian winemakers are increasingly moving up the value chain. At Fratelli, that shift is already visible.
Sekhri said the company has seen clear growth in its luxury portfolio within its broader premium range, a trend he views positively as consumers trade up to higher-quality wines.
Fratelli Vineyards reported gross revenue of ₹130 crore in FY21, which grew to ₹204 crore by FY25. About 67% of its revenue now comes from its premium and above portfolio, while just 23% comes from the value category, signalling a sharper focus on higher-end wines. The remaining 10% comes from ready-to-drink wines.
This week, the company launched a 15-year special edition luxury wine, Sette 15 Anniversary, in collaboration with designer Manish Malhotra. It is also working on two other premium-and-above wines.
Uneven policies
Sekhri said India is still not known globally for wine in the way it is for products such as tea or rice, leaving domestic labels more exposed to imported competition.
While he acknowledged efforts by the central government to safeguard the sector, he pointed to uneven state-level policies. Rajasthan and Haryana, he said, still need to do more to support domestic wine, adding that Haryana currently has the cheapest wine prices in the country.
Fratelli has posted double-digit growth for three consecutive years after Covid, making the current single-digit expansion feel subdued by comparison. “The good news is we will grow this year too,” Sekhri said.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), an industry body representing a large number of Indian alcohol companies, said it has asked state governments to withdraw excise concessions given to imported liquor. The lobby group warned that cuts in customs duties under the India–EU trade framework could further hurt Indian products across both spirits and wine categories, creating a potential double whammy for domestic companies.
Market dynamics
Fratelli currently holds about 35% of India’s wine market, according to Sekhri, making it one of the country’s largest domestic players after Sula Vineyards, which dominates the sector and controls over 60% share in certain premium and elite categories.
Last year, Sula founder Rajeev Samant told Mint that after riding a post-pandemic wine boom, urban consumption had slowed, prompting the company to reset inventory levels, promote cooler varietals such as rosé, expand wine festivals in newer cities and scale back imports.
Fratelli’s strongest markets include Delhi, West Bengal, Telangana, Andhra Pradesh and Uttar Pradesh. The company also operates in Maharashtra, Goa and Bengaluru, where Sekhri said there is scope to build share further.
Retail accounts for about 65% of Fratelli’s sales, with the remainder coming from hotels, restaurants and catering. While large volumes continue to sell in the ₹500– ₹1,200 price bracket, wines priced above ₹2,000 are seeing steady traction.
Mint reported in late January, when the deal was announced, that Indian winemakers are likely to remain largely insulated from lower tariffs on premium European wines, as duty cuts would mostly apply to price bands where domestic brands have limited presence. Wines priced below €2.5 will not receive any tariff concessions, a segment that accounts for the bulk of Indian wine volumes.
Hospitality plans
Most of Fratelli’s capital expenditure linked to wine production is complete, though Sekhri said future fundraising could be considered as new projects take shape.
One such project is a vineyard hospitality venture at Fratelli’s existing Maharashtra estate, where the company plans a roughly 40-key property designed to showcase its vineyards and offer wine-led experiences. Sekhri said Fratelli is close to finalizing an operating partner and has seen strong interest from potential collaborators, though construction has not yet begun.
The vineyards are owned by the founding family, and the hospitality development will be integrated into the existing estate.
Despite rising competition from imports, Sekhri said Fratelli’s focus remains on improving efficiency across production and distribution while continuing to invest in quality.
“I think eventually all wine producers will have to up their game, get more efficient, make even better products and then find their own feet,” he said.