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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/sharexke/public_html/blog/wp-includes/functions.php on line 6114Amit Pathak | Sharekhan Education<\/span><\/p>\n\n\n\n Wine is a low-alcoholic beverage made via the fermentation of fruits, mainly grapes. Grape vines, once planted, require a minimum of two years to mature, making it a long value-chain process. It takes up to two years to manufacture authentic wine, post-harvest. The social taboo around drinking has been reduced lately, which should benefit low-alcoholic beverage industry categories like wines. Wine is all about experiential drinking and sophistication.<\/p>\n\n\n\n The Indian wine market is relatively young, with a per capita consumption of around 25 milliliters. Most of the consumption is from the top urban centers like Mumbai, Bengaluru, Pune, Delhi NCR, and Hyderabad – contributing more than 70% of the overall market. India\u2019s wine market is at an inflection point, with similar GDP per capita to China in 2005. China followed a high-growth path in the wine sector post-2005 as per capita income surpassed US$2,000. Technopak estimates that the wine sector in India will register a Compound Annual Growth Rate (CAGR) of 22% over the period from FY21 to FY25.<\/p>\n\n\n\n The key growth drivers for the sector are growing urbanization and globalization. The boom in the technology sector and the increasing number of multinational companies in India have led to increased disposable income and a rising prevalence of Western culture involving social drinking. Growing awareness of the perceived health benefits of wine makes it more acceptable to consumers relative to spirits. The supply of domestic wines that are reasonably priced and easily available compared to imported wines is also expanding the market.<\/p>\n\n\n\n Seasonal demand characterizes the products of the wine industry in India. Historically, demand for wine has been highest from November to January. The Government is recalibrating its regulations to look at low-alcohol drinks as separate from spirits, on the back of growing awareness and acceptance in society. Policy initiatives are looking at weaning away customers from hard liquor to low-alcoholic beverages like wine and beer.<\/p>\n\n\n\n Wine tourism is emerging as an additional attraction for tourists and provides a good source of revenue generation. It brings to light the entire wine-making process, from planting grapes to selling wine. Consumers who come to the vineyards for day visits or overnight stays can also gain an in-depth understanding of the winemaking and tasting processes and savor them with food.<\/p>\n\n\n\n Sula Vineyards (Sula) acts as the \u201ccategory creator\u201d for wines in India. It has aided in creating a unique wine culture in India via resorts, tasting rooms, and restaurants. Sula is the market leader in India, with more than 50% market share in the 100% grape wine category. Key competitive advantages of the company include:<\/p>\n\n\n\n 1. The largest distribution network, The company is estimated to deliver Revenue & EPS CAGR of 17.5% and 18.6%, respectively over FY23-25E.<\/p>\n\n\n\nIntroduction: Growth of Low-Alcoholic Beverage Industry<\/h4>\n\n\n\n
Wine Market in India:<\/h4>\n\n\n\n
Key Growth Drivers:<\/h4>\n\n\n\n
About Sula Vineyards:<\/h4>\n\n\n\n
2. Robust manufacturing capabilities,
3. Strong sourcing ability (concerning long-term contracts with third-party farmers) and,
4. Long gestation period of the business creates an entry barrier for new players.<\/p>\n\n\n\n