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Tag: wine manufacturing

  • How to Start a Wine Business in India | Complete Guide on Investment, Licensing, Tips & More

    Some businesses take perennial time as well as taxing tasks to succeed well in the future, and one such business is the wine business. Just like farming, the wine business also takes time, say, for 3-5 years to get the implacable extraction of the grape. However, the return on investment that we get from a wine business is twice or thrice the amount we initially invested in it.

    Besides, owning a wine business brings prosperity as it is an elite business, where royal or rich people rely more on it. Generally, wine making business or winery was quite a renowned business in the 18th and 19th centuries, as it is cited that those who own any wineries or a wine business must be highborn.

    As we know in history, people prefer wine to any other drink as it is considered to be a royal drink that literally took more than 100 years to mature or reap. Additionally, commencing capital in a wine business or winery is legal but requires plenty of documents to be approved as it is illegal to sell wine in some countries.

    How to Start a Wine Business in India?
    Investing in Wine Business
    Licensing Requirements of Wine Business
    Government Initiatives

    How to Start a Wine Business in India?

    Determine the Investment Required

    As is the case, investing or starting a wine business requires a copious amount and the result will be manifest in the future, only if the wine augments the brand. Because prepping wine is a laborious activity as it takes more than years to get ready. If your ancestors owned any wineries, then it would be good as you don’t have to invest any beans in them.

    There are two ways, in which a businessman or an entrepreneur can look into starting a wine business- either lending land to harvest wine or buying a thriving winery business.

    In case, you have superfluous funds in the idea of running a wine business, then acquire wineries- where the building or a place produces fine wine for years. So, plan according to the capital you want to invest in the wine business.

    Size of Wine Market in India
    Size of Wine Market in India

    In FY 2021, India’s wine market was around two million cases. By FY 2025, it is expected to grow to 3.4 million cases.

    Find a Suitable Land for the Wine Business

    Select a place that should be soil-friendly and large square feet where the grape should grow fine as well as enriched. The place should be suitable for a warehouse along with a tasting room, where matured grapes can be tested & stored for the procedure of wine. Make sure you have at least 20 acres of land. Furthermore, Examine the winery or wine production place that should be in suitable vegetation as it will generate seasoned grapes.

    Get Approval

    As I said before, planning to start a wine business demands a lot of approval, documents, and permission from the government. Besides, the wine business should apply for a permit and register to pay the tax. Until the license is procured, the wine business or wineries have no right to proceed with its market of wine in the country.

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    Arrange Business Requirements

    In order to trade your wine in the market, you just need transport to transfer or carry out the wine, wine crates to store the wine, tanks in case to preserve it for years, and wine pallets to arrange the wine according to their categories like- number of years, flavored wine or enriched wine, etc.

    Apart from that, a wine business requires an office to maintain its record of transactions like a computer, and staff to supervise the office as well as wine production. The investment required for the wine business is approximately 4 crores to 7 crores.

    Connect with Clients via Retailers

    Before marketing your wine to anyone, decide whether you want to trade your business through retailers or wholesalers or directly to the consumer. If you are looking for a retailer, there are plenty of opportunities knocking at your door, where those potential retailers connect your business with expecting events such as weddings, ceremonies, or jubilant celebrations. Because these events demand drink and that too fine-flavoured wine. In this way, you can also earn reputable & credible clients for your future business transactions.

    Select a Brand Name

    Selling wine itself is an elite business in some countries, but that ilk of wine should come from a brand name. For instance, E & J Gallo stands as the top-notch wine production company in the whole world. And people would definitely go for E & J Gallo wine, as it tastes heavenly plus branded for sure.

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    Broaden Your Channel of Distribution

    Owning a wine business connects you widely particularly among high society because in history producing & selling wine was considered a reputable business. Besides, starting a wine business casts you as an aristocracy in the eyes of highborn society.

    Just investing money in the wine business and waiting to burgeon is tantamount to waiting for the grape to reap or mature. Think of an ingenious way to sell your wine like making special offers for your potential & first-ever customer to bring trust in your business.

    Furthermore, advertise your business reliably and creatively like selling a romantic-flavoured wine to a couple by coming up with a romantic tale behind the wine taste.

    How Wine is Made

    Investing in Wine Business

    Draw a budget for your wine business and according to that, plan and work. Investing a plethora of money in the wine business really reflects prosperity earnings or returns in the future. The price of the land you are looking for in a wine business is determined by the square feet and whether there is the availability of necessary amenities for the production of wine.

    Generally, investment in the wine business starts from approximately 4 crores to 7 crores. as ferreting a suitable land to set up the prepared wine to the market requires tons of money. On the other hand, you can just buy thriving wineries to expect profit soon, and demand a lot more money than starting up your own wine business; But, you can get up to 50% of the loan.

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    Licensing Requirements of Wine Business

    A wine business is tolerated only if the wine label must be approved by the government of the Food Safety Standards Act. Besides, the wine business will function, only if they have registered in Alcoholic Beverage Control by concurring all terms and conditions of the state and local of India. The license is given to the merchant only if the payment of sales charges, excise tax, and other related taxes are paid.

    If your wine business is trading goods and services overseas, you should get the license. Pay off the state and excise sales tax with the help of prescribed rates.

    The license for the wine business is valid only for 1 year, and the license should be renewed each year to function wine business in the nation.

    According to GST, all alcoholic products subsuming- Wine are levied tax at an 18% rate, and state & local excise tax differs in each state of India but doesn’t exceed 25%.

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    Government Initiatives

    The Indian government has introduced several initiatives to promote the wine industry:

    • National Wine Board: Supports grape, apple, plum, and apricot farmers, along with raisin, juice, and wine producers. It encourages contract farming and promotes fruit processing and the wine industry.
    • APEDA (Agricultural and Processed Food Products Export Development Authority): Promotes “Wines of India” globally, focusing on markets like France, Italy, Germany, the USA, the UK, and Singapore. Several wine clubs, tourism initiatives, and magazines have also emerged across India.
    • Maharashtra’s Grape Policy: Offers incentives such as reduced excise duty on wines, quality control regulations, certification, and export promotion. A Wine Institute has been established to ensure international quality and provide trained professionals. Additionally, an Agri Export Zone for grapes has been set up in Nashik, Pune, Sangli, and Solapur.
    • Karnataka’s Wine Regions: The state has identified suitable areas for high-quality wine grape cultivation. Bengaluru, Kolar, Ramanagar, Chikkaballapur, and Tumkur are designated as “Nandi Valley,” while Bijapur, Bagalkot, Belgaum, Gulbarga, Koppal, Raichur, Gadag, Bellary, and Bidar form “Krishna Valley.” Mysore, Mandya, and Chamarajanagar are recognized as “Cauvery Valley.”

    Conclusion

    Investing in a wine business will cherish your life in the future, remember that grapes take time to mature. But in case you want to meet profit soon, then go for wine vineyards or wineries as they have connectivity in the market for years because of the business existence period. Once, you are well developed in the wine business there’s no turning back because you will have already reached one of the top-richest businesses in the world.

    FAQs

    How much does it cost to start a wine business?

    An investment of approximately 4 crores to 7 crores is required to set up a wine business in India.

    Is wine making profitable in India?

    Yes, winemaking is a profitable business in India but requires high investment.

    How much does a wine shop owner make in India?

    A liquor store owner in India earns an average profit of 4 to 5 lakhs per month.

    What is the wine factory cost in India?

    The estimated cost to open a wine factory in India is INR 6-7 crore.

    Is the wine business profitable in India?

    Yes, the wine business in India is becoming more profitable. The market is growing fast, and demand for both Indian and imported wines is increasing. This makes it a good business opportunity with room to grow. However, success depends on things like location, product quality, marketing, and following local rules.

    What are the small winery startup costs in India?

    Setting up a small winery in India usually costs between INR 4 crore and INR 7.5 crore.

    How to start wine factory in India?

    Follow the below steps to start wine factory in India:

    • Research & Plan – Study the wine industry, choose a location, and create a business plan.
    • Legal Requirements – Obtain licenses, and permits, and follow local regulations.
    • Land & Infrastructure – Find land for grape cultivation and build the factory.
    • Grape Sourcing – Grow your own grapes or partner with farmers.
    • Equipment & Technology – Buy necessary machinery for wine production.
    • Hiring – Hire skilled workers for production, quality control, and sales.
    • Marketing – Promote your brand through online platforms, wine clubs, and events.

    How to start wine making business in India?

    To start a wine business in India, get licenses, choose a good location, and set up a winery with proper equipment. Source quality grapes, ensure good production, and hire skilled staff. Build a strong brand, market well, and sell through retailers and online platforms.

    How much investment is required to open a wine shop?

    The estimated amount for a wine shop investment is ₹50 lakh to ₹1.5 crore, depending on location and size. Major costs include licenses (₹10-50 lakh), store setup (₹10-30 lakh), stock purchase (₹10-50 lakh), and operational expenses like staff and marketing. Profit margins range from 20-40%, and success depends on location, product variety, and effective marketing.

    How much does a wine shop owner make in India?

    A wine shop owner in India can earn ₹1 lakh to ₹10 lakh per month, depending on location, sales volume, and profit margins.

  • Fruzzante – Farm-Grown Fruit Wine

    Wine market in India is still in its infancy. The annual per capita consumption of wine is very low as compared to many European countries. Drinking wine is not a part of Indian tradition. As such negative public and religious opinions have prevailed regarding wine, in the Indian society for many years. But with globalization and with a huge segment of Indian population becoming more educated and financially strong, the demand for wine in India is increasing.

    We have interviewed co-founder of Fruzzante, Mrs. Priyanka Save to know more about this unique wine business.

    Fruzzante – Highlights

    Startup Name Fruzzante
    Headquarter Bordi, Maharashtra
    Founders Priyanka Save & Nagesh Pai
    Industry Wine Manufacturing
    Founded 2010

    Fruzzante – About
    Fruzzante – Industry Details
    Fruzzante – Founders
    Fruzzante – The Idea
    Fruzzante – Name and Logo
    Fruzzante – Product
    Fruzzante – Revenue Model
    Fruzzante – Customer Acquisition
    Fruzzante – Challenges
    Fruzzante – Growth
    Fruzzante – Funding
    Fruzzante – Competitors
    Fruzzante – Future Plans
    Fruzzante – Advisors and Mentors
    Fruzzante – Awards and Recognition
    Fruzzante – Conclusion
    Fruzzante – FAQ’s

    Fruzzante – About

    While most of the wine in India and around the world is made of grapes, Fruzzante, a brewery in Bordi, Maharashtra has given an interesting twist to the beverage by manufacturing wine with the Indian local fruit, chikoo. Fruzzante is the solitary producer of chikoo wine.

    The mission of the company is to make quality wines from chikoo and other fruits like pineapple and mango and break the stereotype in the wine industry where wine is primarily made from grapes only.

    The company’s vision is to aid the chikoo farmers by providing them with the dire acknowledgment that they deserve.

    Our journey began from the grassroots and will forever be respectful of that.

    Fruzzante – Industry Details

    According to the India Wine Market Overview (2018-2023) report, Indians are becoming aware of the health benefits of wine. As such, the Indian wine market has grown with a CAGR of more than 25% in the past five years.

    A recent report by Dataessentials, revealed a 39% increase in the inclusion of beer and wine-based cocktails in menus. For instance, combinations of gin and sparkling wine with a melon slice or rum with prosecco and fruit juices are gaining popularity. Keeping in view this shift in consumption patterns and preferences in alcohol beverages, producers will have to come up with complex flavors and preparation methods. Many varieties of drinks such as ‘smoked’, ‘toasted’, or ‘pickled’ are being introduced to cater to the younger demographic.  

    Also with wine consumers becoming more health conscious and concerned about calories, bloating and headaches, producers are on a lookout for healthier ingredients like vegetables and fruits. According to Priyanka, India has the prowess to compete on a bigger scale in the wine industry.

    The mismatch in production will steadily level up within the next few decades which makes it an interesting market to be a part of.  

    Fruzzante – Founders

    Priyanka Save & Nagesh Pai | Co-Founders, Fruzzante

    Priyanka Save and Nagesh Pai are Co-founders of Fruzzante.

    Mr. Shrikant Save has been helping the company reach out to the export market. Fruzzante also has a bunch of sales staff and creative support team as well.

    Fruzzante – The Idea

    Priyanka has childhood memories associated with the chikoo orchards of Dahanu-Gholvad in Maharashtra. In 2004, a seed borer disease sever ely affected the chikoo plantations. The chikoo market was hard hit due to this disease and the farmers had to cut off their plantations. The market acceptance of the fruit was severely affected. Priyanka’s family owns Hill Zill resort in Bordi, 25km away from Dahanu and they thought of reviving the chikoo market. Their initial idea was to process chikoo in a packageable form. But products made from dried chikoo failed to attract customers. Again, chikoo juice was highly perishable. Finally owing to the fermenting nature of the fruit, it was decided to start making wine with chikoo. They visited numerous wineries in India as well as overseas to acquire precious knowledge about perishability, extraction, fermentation, storage and packaging. After all the research the brewery was set up in the family’s resort in Bordi.

    We wanted a name to indicate both fruit and fizz. Hence the name Fruzzante.

    Fruzzante logo is a stamp that indicates quality consciousness which is their priority when manufacturing a product.

    Fruzzante Logo

    Fruzzante – Product

    Fruzzante wine is the world’s first and only producer of a cider-style alco beverage made from chikoo extracts. It is also the only company producing fruit-based and non-grape bottled products in the wine category that is currently commercially available. Its products are both vegan and gluten-free which makes it a healthy choice as well.

    Fruzzante Products

    Apart from chikoo cider wine, Fruzzante has released other variants in the vegan beverage range made in cider style including Pineapple, Mango, and Spice Garden (Cinnamon, Ginger, and Honey with chikoo). They also have a sparkling white wine made from star fruit blended with grapes under the brand name JIWA and a premium honey dessert wine or mead under the brand name ARKA i.e, aka the Fruzzante beer.    

    Fruzzante – Revenue Model

    Fruzzante prices their wines at an affordable INR 255 for 330 ml. The cost is also considering the 100% Excise duty applicable on the product, unlike grape wines that are duty-free in Maharashtra. 20% VAT is also applicable, unlike grape wines where 16% rebate is applicable. The company has approached state governments several times to treat all fruit wines as equal and be given the same benefits as grape wineries enjoy. However, it awaits an answer on the same.

    Fruzzante – Customer Acquisition

    Acquiring the first 50 customers came rather easy. The winery being a part of a 30-year-old family owned resort, they started with giving winery tour to all room guests. A lot of appreciation along with business came along as the winery tour activity got more and more popular.

    Fruzzante – Challenges

    The initial challenge was that regarding the nature of the raw material, chikoo. There were problems with high pH levels, uneven ripening, and low shelf-life. The fruit is immensely dissimilar to fruits like grapes which ripen naturally and harvest easily. It rather requires controlled environments, and hence the Company resorted to ripening in chambers that control the natural ripening process as opposed to non-organic means. The benefit was uniform ripening and hence better quality of juice, thereby resulting in a quality product.

    Fruzzante Wine manufacturing Plant

    Fruzzante also faced several challenges in terms of processing the fruit. But Priyanka and Nagesh being experienced mechanical engineer, they were able to handle the issue efficiently. They created conducive environments with the use of impeller pumps and fermentation tanks on north facing stilt levels (least sun exposure) to ensure less cooling and power savings. The further implementation of automatic temperature- controlled systems, cooling jackets, and ozonators helped maintain hygienic and sterile conditions.  

    There were also challenges in packaging the highly perishable fruit, which was eventually solved with the help of a fully automatic bottling filling machine. This enabled appropriate and efficient rinsing, filling, and capping of the bottles. Therefore, the bottling along with the air-conditioned storage facility helps maintain comfortable temperatures for product storage. With all the challenges the Company faced, it hasn’t relinquished or compromised on the stance of placing quality before anything else; a vital element in any process.  

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    Fruzzante – Growth

    Fruzzante has made its products available in Mumbai, Pune, Nagpur and soon will expand the market in Kolhapur too. Many associate a sense of pride with the product which they feel is their biggest achievement.

    In order to reach out to more customers, Fruzzante envisions working with several other fruits while maintaining quality standards.

    In today’s market, consumers are looking for authenticity in their products because they are being bombarded with adulterated products.

    Fruzzante, therefore, strives to represent honest producers who understand the need of the market and bridge the gap through authentic, unadulterated, and tested products. As a home-grown brand, they bring the traits of understanding, compatibility, and reliability to the table.

    Fruzzante – Funding

    Fruzzante has not raised any funding from institutional investors, however it has taken a financial loan from a bank to set up the plant and machinery.

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    Fruzzante – Competitors

    Fruzzante is unique in the sense that it is the only fruit-based non-grape bottled product in the cider-style beverage category currently available commercially. Its products are both vegan and gluten-free which makes it a healthy choice. Hence, it does not have any direct competitors in its niche. However, on a broader scale of wine manufacturing, it is competing against Chateau Indage, Grover Vineyards, Sula Vineyards and Sankalp Wines among others.

    Fruzzante – Future Plans

    Fruzzante wishes to diversify their product range further. Their expansion plans include working with several other fruits in the near future. It will also be tying up with B2B trade companies in the state of Maharashtra, which they believe will enable them to form a consolidated network in the state and enable them to traverse into other parts of the country as well.  

    Fruzzante – Advisors and Mentors

    Mr. Dominic Rivard and Mr. Ajit Balgi are the guiding light behind Fruzzante venture.

    Rivard is an award-winning winemaker and cider specialist in Canada. Mr. Rivard owns the Bulwark Ciders and Red Barn Winery in Nova Scotia. Mr. Balgi is instrumental in brand building and is consulting the company.

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    Fruzzante – Awards and Recognition

    Certain highlights or milestones along our journey fed our beliefs and strengthened our hope.

    Fruzzante won the silver medal at “Drink Outside the Grape” challenge 2017 held in the United States. Fruzzante competed against 145 global wines and ciders and emerged as a winner. However, its biggest milestone continues to remain in bringing the chikoo market back on the map.

    Team Fruzzante acknowledges the contribution of the farmers towards the making of the brand. As such, the company mentions the Warli tribe on the labels of each product. In addition, the proceedings from the sale of the special “Starfruit Jiwa” flavor of the drink are contributed for the well being of the tribe, as a mark of respect and remarkable achievement in bringing the chikoo market back to life.

    Fruzzante – Conclusion

    Fruzzante co-founders Priyanka Save and Nagesh Pai always wanted to explore the potential of farm-grown fruits. This led them to open a business in farm grown fruits in India. Fruzzante offers ciders of different fruits like a pineapple, mango, starfruit and chikoo ciders. These ciders are gluten-free and are made using perfectly ripe fruits. When the fruits are ripe, they are collected from the farms, the juices are extracted and are further diluted with water without any added sugar.

    Fruzzante – FAQ’s

    What is Fruzzante?

    Fruzzante, a brewery in Bordi, Maharashtra has given an interesting twist to the beverage by manufacturing wine with the Indian local fruit, chikoo.

    What is the Company’s Mission?

    The mission of the company is to make quality wines from chikoo and other fruits like pineapple and mango and break the stereotype in the wine industry where wine is primarily made from grapes only.

    Who is the Founder of Fruzzante?

    Priyanka Save and Nagesh Pai are Co-founders of Fruzzante.

    What are different products of Fruzzante?

    Fruzzante has released other variants in the vegan beverage range made in cider style including Pineapple, Mango, and Spice Garden (Cinnamon, Ginger, and Honey with chikoo).