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Indian Wine Industry in High Spirits in FY 2010
Dec 28, 2009

Owing to steady economic rebound, the Indian wine industry, earlier hit by economic turmoil and Mumbai terror attacks, is all set to post a strong comeback this season.
The Indian wine industry, during the peak season, i.e. October 2009-March 2010, is expecting growth in wine sales, as per the news published by Livemint.
The four big festivals viz. Dusshera, Diwali, Christmas and New Year are covered in this peak season that ends in the month of March, marking the completion of the fiscal year 2009-10. During this period, around 60-70% of the annual wines sales are made in India.
This positive news has given relief to the wine manufacturers as the industry was badly hit in the last festive season due to various reasons. The first and the foremost reason was the global financial meltdown, which restrained consumers’ spending. The other major reason, or curse, was the terror attacks that rocked Mumbai’s Taj Palace and Tower Hotel along with the Oberoi hotel branch in the city on November 26, 2008. These incidences left five-star hotels deserted, and it is to be noted that restaurants and hotels account for a huge segment of wine sales.
As a result, the fiscal year ended 31 March 2009 witnessed an overall slump in wine sales, which contracted by 1.6% to 1.53 Million Cases from 1.55 Million Cases in 2007-08.
However, the wineries are now more confident. Tourist arrivals and wine consumption seem to improve as the economy is recovering. Resultantly, the Indian wine market, previously growing at 25% rate for four consecutive years before FY 2008-09, is expected to register a moderate single-digit growth in FY 2009-10.
According to a market research report “Indian Wine Industry Forecast to 2012” by RNCOS, India has came forth as one of the world’s fastest growing wine markets in the world. However, despite India’s huge population of over 1.1 Billion, the wine consumption remains very low. In 2008, India’s per capita wine consumption was estimated at around 9 Milliliters, thereby indicating huge growth potential in near future.
According to a Research Analyst at RNCOS, “The wine industry in India is all set to make a strong comeback this year, owing to a steady economic resurgence. Traditionally, India has not been a wine consuming nation, but among other factors, changing habits of the people have changed the face of the Indian wine industry, which will further support the sector in long-term.”
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