The Indian wine market currently stands at 4.6 million litres in volume terms and Rs 450 crore in value terms.

The wine market is expected to grow to 8.3 million litres by 2010. Per capita consumption of wine remains extremely low in India; however, there is growing consumer interest in wine with a number of wine clubs opening in Delhi, Chandigarh, Hyderabad and Bangalore.

Nearly 80 per cent of wine sales are accounted for by the major cities, especially New Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore.

West India accounts for over 41 per cent of total volume sales of wine in India, followed by North India, which accounts for 29 per cent of volume sales.

Nearly 90 per cent of wine sales are for still (that is, red and white) wines. Sparkling and ros� wines, in contrast, target select segments of particularly affluent consumers.

In most states the sale of wine remains restricted to licensed off-and on-trade outlets, which means a limited number of outlets selling wine.

Around 63 per cent of the volume sales of wine are through off-trade channel in five-star hotels, pubs and bar-restaurants.

KIT by Technopak Advisors