Investing in India s Emerging Wine Industry

Transcription

1 Available online at International Journal of Advanced Scientific Research & Development Vol. 03, Spl. Iss. 02, Ver. I, Sep 2016, pp e-issn: p-issn: Investing in India s Emerging Wine Industry D. KRUPAVATHI Research Scholar Dept. of Commerce S. V. University, Tirupati. ARTICLE INFO Article History: Received: 03 Sep 2016; Accepted: 04 Sep 2016; Published online: 16 Sep Key words: Wine industry, Exports, International business, India. ABSTRACT India was expanding wine industry is in the midst of a transition. The country wine produced 17 million letters and every year sales raising 40 percent. The wine industry in the company growing export sector and expanding domestic consumer market. The Indian industries are supported to wine producing states. It has to face the global market competitor. In this year the Indian Government newly formed Indian Grape Processing Board (IGPB) and also started Indian wine standards with the International Organisation of Wine (OIW) guidelines. These guidelines are very useful to the producers, investors and traders. In this paper for employers are who had employees assigned between India and Australia. All the employee contracts in order to determining the future legal liability at the economic cost. The company investors are established COCS are available dependent on the nature of work. They should reassess the planned assignments to ensure that operating the employment cost. The employers should prepared necessary to work for COCS to ensure the period for deputation to other countries. One of the most critical components to the employer to review the salary and associated social security payments. In additions to that the companies has to inform the employees about the implication between the India and Australia will have on their compensation packages. Copyright 2016 IJASRD. This is an open access article distributed under the Creative Common Attibution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. INTRODUCTION India was expanding wine industry is in the midst of a transition. The country wine produced 17 million letters and every year sales raising 40 percent. The wine industry in the company growing export sector and expanding domestic consumer market. The Indian industries are supported to wine producing states. It has to face the global market competitor. In this year the Indian Government newly formed Indian How to cite this article: Krupavathi, D. (2016). Investing in India s Emerging Wine Industry. International Journal of Advanced Scientific Research & Development (IJASRD), 03 (02/I), [Special Issue Sep 2016], pp

2 Investing in India s Emerging Wine Industry Grape Processing Board (IGPB) and also started Indian wine standards with the International Organisation of Wine (OIW) guidelines. These guidelines are very useful to the producers, investors and traders. In this paper for employers are who had employees assigned between India and Australia. All the employee contracts in order to determining the future legal liability at the economic cost. 1.1 A Decade of Success Since 2000 the India having emerging market for the wine industry. They has to offer the grape cultivation and wing producing states like Maharashtra, Karnataka are produced world high class grapes. 1.2 Heating up: A Guide to Indian Coffee Industry In 2001Maharastra Grape Processing Policy was create a booming to produce wine production 712 kiloliters and it is exceeded to 20 million litters from 2002 to In the year 2008 the Karnataka wine policy reduce the cost and winery license to significantly expand the market. The states are established a number of wine parks who are provided basic infrastructure facilities and the states are providing the 100percent exemption for the excise duty next 10years. The sales tax levels and subsidies for the production are exempted. Many new wineries companies are ready to production. The industry competition 80 percent of the market occupied by the major players. Several additional measures had taken in to facilitate the production, improve quality, and encourage investment and awareness. All the state governments are begun to promote the economic development and tourism revitalization tactic. The foreign investments are the main key to industry potential. The IGPB has assisted produced several international wine fairs and national research centre for grapes. And the projects are improved the technologically production and management. 1.3 Rising Export Sector & Progressive Retail Market The Indian exported 1.8 million liters of wine in And percent are improving year to year and the finally reached US $6.88 million. The total wine production estimated the states of Maharashtra and Karnataka was 14.2 million liters. In Karnataka wine industry increased to 5 million liters and every year raising Volume 03, Special Issue 02, Version I 16 th September 2016

3 Emerging Trends in Business Excellence and International Business India s Perspectives Organized by Department of Commerce, University of Madras, Chepauk, Chennai 5. million liters. And also the supermarkets sales are also increased. The sales are largely in domestic wines, and imported wines from high retail prices due to import tariff and consumer unfamiliarity. 1.4 Prospects for Foreign Investment The Indian state governments are exclusive competence to excise duties for alcohol and their rates. Each states are differing and complex licensing, registration and taxation procedures with manufacturing. The sale of wine many states is grouped with the alcoholic beverages such as spirits regard to taxation and prohibition. The foreign investment in the industry navigating the gragmented markets. The India has to reduce the investments in wine producing states upcoming years. The foreign direct investment (FDI) in Indian wine industry is in rise and international cooperation form of capital, technology and expertise. Viticulture industry currently allows percent FDI in India rotation. The quality price of wines is considered to be key to speeding the development of wine culture in India. The main local wineries are working very hardly to produce inexpensive sweet wines to the palate of the Indian consumer. While significant challenges remain, investors in the industry to become increasingly in the short to medium term prioritize the Indian consumer in any attempt to enter the market. 1.5 Small-scale Industry Delhi is the centre for small scale industries in India, it is the industrial development of the city. These all are manufactured industries of items such as fertilizers, textiles, footwear, sporting goods, automobile parts, engineering machines, leather goods and software. The manufacture of certain items has historically been restricted to small-scale operations, with 873 items reserved for small-scale manufacturing at one point. This list has been gradually chipped away by the federal authorities, with only 21 items remaining today. Among these items are wood furniture, laundry detergent and food products. While large-scale production of the hundreds of now liberalized items is permissible, manufacturers must still acquire industrial licenses and fulfill an export obligation of 50 percent of yearly production. The Delhi Department of Industries is also further promoting small-scale industries that are modern, high-tech, sophisticated and export-oriented. In addition, industries that are not resource-intensive are also being encouraged. 1.6 Economy & Trade Lucknow is the largest city and capital of India s most populous state, Uttar Pradesh (UP). Nicknamed the City of Nawabs for when it was the seat of power of the Nawab of Awadh in the 18th and 19th centuries, Lucknow today is an important Tier II city in India. Situated 500 km southeast of New Delhi, it is an established administrative center of UP. New projects such as the Lucknow Agra Expressway, Lucknow Azamgarh Ballia Poorvanchal Expressway, and the metro rail seek to lend world-class infrastructure to the old city. However, in terms of connectivity, Lucknow is Volume 03, Special Issue 02, Version I 16 th September

4 Investing in India s Emerging Wine Industry already well-linked to the rest of the country, including major cities like Kolkata, Mumbai, Delhi, Hyderabad, Bangalore, Patna, and Varanasi via road, rail, and air. Climate wise, the city is a humid subtropical zone with a very hot summer season from April to June, monsoon season from July to September, and a cool dry winter season from December to February. Lucknow is located in the fertile Indus-Gangetic plain and sits on the northwestern shore of the Gomti River, which divides the city into the Trans- Gomti and Cis-Gomti regions. It is also one of the three cities in Uttar Pradesh Tourism s Heritage Arc (along with Agra and Varanasi). 1.7 Exports from Chennai Ford India has become the second auto-manufacturer after Hyundai to have their dedicated car parking yard at Chennai Port. With Ford making India its global manufacturing and export hub, this dedicated facility at the Chennai Port marks a significant step to provide access and further accelerate exports of Chennai-made Ford autos, including the all-new EcoSport, to 38 countries worldwide. This will be Ford s first car parking yard at the Chennai Port premises after its announcement of exporting the ongoing EcoSport to Nepal and South Africa. Atulya Misra, Chairman of Chennai Port Trust and Joginder Singh, President and Managing Director at Ford India, jointly inaugurated the company s first dedicated car parking yard at the Chennai Port premises. The 7,000-square-metre space, allotted for a period of 11 months, is near gate no.7 and will allow Ford to park 500 cars at a time prior to overseas shipment. Chennai is similar in many ways to Shenzhen in China. It overlooks Southeast Asia and is well on track in becoming one of Asia s primary ports, comments Chris Devonshire-Ellis, Managing Partner of Dezan Shira & Associates India. CONCLUSION Today Indian consumer is well informed about wine than before. Earlier, for consumers, types of wine means red and white. But today consumers know about definition of red wine can be considered as Sula satori merlot from Nasik is smooth on the palate..they know about type of grape, area of origin, brand, taste and expert recommendation. They love to experiment the various types of wines. But..Still price holds the major contributing factor while selecting a wine for purchase. This price sensitivity can be reduced only when Indian wine consumer will be more educated about wine. It means more involvement in the wine as a product. Then consumers focus would shift from price sensitivity. Wine marketers should come up with frequent wine tasting sessions about their flagship brands. This would alter the price challenge in market to some extent. They should also emphasis on food and wine pairing with a particular combination of wine. REFERENCES [1] Dezan Shira & Associates(2015), Investing in India s Emerging Wine Industry, India Briefing, [2] Volume 03, Special Issue 02, Version I 16 th September 2016

5 Emerging Trends in Business Excellence and International Business India s Perspectives Organized by Department of Commerce, University of Madras, Chepauk, Chennai 5. [3] Reporter, The Hindu (2014), Wine is the word, [4] [5] Lucy Shaw(2014), India s wine consumption to rise by 73%, The drinks business, [6] by-2017 Volume 03, Special Issue 02, Version I 16 th September