In India, the cost of opening and setting up a wine distillery is cheaper - Rs.10-15 million for a plant with a capacity of 100,000 litres. No wonder many Indian and foreign companies are jumping on to the Indian wine bandwagon, says Sajjan Jindal, president of Associated Chambers of Commerce and Industry of India (Assocham). The Indian wine industry is on a high, literally. The domestic wine market, currently growing at 20 percent, will grow at 25 percent by 2010, he adds. By 2010, domestic wine consumption will reach around 9 million litres, an Assocham study said.

The conducive conditions thus formed for winemakers have already drawn the likes of top drinks maker Diageo, Pernod Ricard, LVMH’s Moet Hennessey and SABMiller to India, which was once described as having only small and mid-sized players. Other companies like Anheuser-Busch Co. Inc. and Danish brewer Carlsberg are also on their way. The soaring popularity of imported brands, which sell at much higher prices than domestic varieties, offers international companies great opportunities for strong value growth, Jindal said.

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