2014

Group 2Supply Chain Management31-Aug-14

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Wine from Australia

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ByGroup 2

Jigyasa YadavKrithika Dayalan

Nayana UnniNicole Andrea D’Silva

Rahul Raju

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CONTENTS

Introduction..........................................................................................................................................5

Imports.................................................................................................................................................6

Australian Wine players in India:.....................................................................................................6

Market Segment and Market Share for Imported Wines..................................................................7

Import duty, local taxes and Price Structure:....................................................................................7

Pricing Factors:................................................................................................................................9

Export............................................................................................................................................10

Supply chain design & LOGISTICS NETWORK.............................................................................11

forecasting......................................................................................................................................13

demand for wine.........................................................................................................................14

sula vineyard..............................................................................................................................15

Service level agreement.....................................................................................................................16

Samples..........................................................................................................................................16

Delivery Period...............................................................................................................................16

Exchange rate fluctuations.............................................................................................................16

Order..............................................................................................................................................16

Packaging and transport................................................................................................................17

Labeling..........................................................................................................................................17

Quality............................................................................................................................................17

Guarantee......................................................................................................................................17

Payment for Goods........................................................................................................................17

Inspections, tests and analyses......................................................................................................17

Documentation..............................................................................................................................18

Compliance with Laws....................................................................................................................18

Transfer of risk...............................................................................................................................18

Payment of duties, levies and taxes...............................................................................................19

Stamp duty, Bank charges, etc.......................................................................................................19

Royalties and patent rights............................................................................................................19

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Failure to comply with conditions and delayed execution.............................................................19

Breach............................................................................................................................................20

warehouse and logistic network.........................................................................................................21

design logistics and distribution network...........................................................................................24

Packaging.......................................................................................................................................24

Packaging for Transport of wine over long distances:................................................................24

Transportation of wine in bottles...............................................................................................25

How is wine loaded into and unloaded from a flexitank?..........................................................26

References.........................................................................................................................................28

ANNEXURE I...................................................................................................................................29

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INTRODUCTION

The Indian wine market is in a nascent stage. Estimates suggest an enormous growth potential of this sector both from the indigenous wine making industry and imports. The wine market in India is mainly fuelled by the strong growth in the domestic wine production, but imported wine plays a role in creating awareness and increased demand. Like most products in India, wine is extremely price sensitive.

Maharashtra, Karnataka and Himachal Pradesh (a recent entrant) are the three major wine producing regions in India.

Maharashtra, on the western coast of India, is the major wine-producing region, accounting for 94% of the total wine produced in the country. According to the Department of Wine Production of the Maharashtra Industrial Development Corporation (MIDC), the wine producing region is spread over 30,000 hectares, covering 64 wineries. During the year 2007/08 Maharashtra registered a massive growth in wine production to 21.1 million litres against 13.2 million litres in 2006/07. This was a growth of 60% over the previous year and illustrates the ongoing appreciation of the virtues of wine by Indian consumers. Six new wineries became operational in Maharashtra, taking the total investment in the state to A$89 Million producing 720,000 litres of wine.

The major grape producing regions in Maharashtra are Nasik, Satara, Sangli, Ahmednagar, Pune and Osmanabad, which are located approx 180-300 kms north-east and south of Mumbai. Thirty wineries have established production and bottling plants in the Vinchur industrial estate near Nasik.

Karnataka produced 1.2 million litres of wine during the same period. Two of India’s leading brands, Grover Vineyards and Indage, have plans to set up wine production facilities in Himachal Pradesh.

There are three major local producers who control more than 90% of the market. Their market shares are as follows:

Domestic Players 2004-05 2005-06 2006-07 2007-08

Grovers Vineyard 37% 26% 24% 22%

Chateau Indage 49 % 38% 36% 35%

Sula Vineyards 14 % 36% 34% 35%

Sula Vineyards as of now enjoys 70 percent share in the Indian market. Its wines are also exported to 20 countries in Canada, United States, Middle East, Europe as well as Asia.

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IMPORTS

AUSTRALIAN WINE PLAYERS IN INDIA:

Some Australian wine companies that have entered the Indian market during the last 7 years include:

1. Howling Wolves of Western Australia, who have been marketing wine in Mumbai since 2004. The former Premier of Western Australia, Dr Geoffrey Gallop, launched their wine in Bangalore in October 2005.

2. Smith Brooke of Margaret River, Grant Durge, St. Hallett and Thomas Mitchell of South Australia, and Pikes, Victor Precie and Stonier of Victoria have tied up with Echidna Wine Traders to market their wines in India.

3. Xanadu and Cape Mentelle from Western Australia are also being marketed in India by Fine Wines & More and Moet Hennessey.

4. BRL Hardy has a distribution arrangement with Sula Vineyards of Nasik.

Additionally well known Australia brands such as Oxford Landing, Yellow Tail, Jacobs Creek, and Tyrell are readily available in India.

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MARKET SEGMENT AND MARKET SHARE FOR IMPORTED WINES

In India, there are two major market segments through which imported wines are sold. These are:

1. The hospitality sector

2. The retail sector

The hospitality sector consists of 4 and 5 star hotels and upmarket restaurants and currently accounts for up to 63% of sales for imported wines. The hotels normally buy wine from importers and distributors as opposed to importing the wines directly from producers due to the logistics and economies of scale.

The retail sector accounts for 30% of sales of imported wines. Currently there are Ten Indian States that allow the sale of imported wines through retail stores. These are Punjab, Haryana, Chandigarh, Karnataka, Maharashtra, Goa, Uttar Pradesh, Madhya Pradesh, Jharkhand, Himachal Pradesh. The union territories of Pondicherry and New Delhi also allow the sale of imported wines through retail stores. The sellers are granted a permit and license according to the policy of the respective state. In the states other than those mentioned above, the sale of imported liquor (including wine) through retail outlets is not permitted. However 4 and 5 star hotels in these states are allowed to buy bottled wine against a duty free license. The states of Tamil Nadu and Andhra Pradesh do not allow the sale of imported wines, while the state of Gujarat prohibits sale of any wine or liquor through retail outlets.

IMPORT DUTY, LOCAL TAXES AND PRICE STRUCTURE:

The Central Government levies import duty, in addition to which each State Government further impose their own taxes on imported wine. The taxes levied vary from state to state. They are complex and keep changing on a fairly regular basis. Because of the complex tax structure and permit regulations it is very hard for a distributor in one state to sell the product to buyers in another state.

Hotels and restaurants, under the duty free scheme (a certain percentage of their foreign exchange earnings can be used to offset import duty on imported goods, including wine) are at an advantage. However, the volume imported under this arrangement is still small. It is to be noted that 75% of the imported wines are sold in 4 and 5 star hotels.

Each state has different levels of taxation as well as varying labelling requirements, types of labels, fees for registering labels, etc which need to be adhered to. Wine exporting countries, including Australia, have, through their High Commissions and Embassies in India, been making representations to the Indian Government with the support of local producers to streamline the taxation structure

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and labelling requirements. This has been a slow process and scant progress has been made. Duties and taxes are the major impediment to the growth of the wine market in India.

Under the WTO agreement and pressure from the US and EU countries, the Government of India announced the reduction in basic duty from 150% to 100% effective 3 July 2007. However the states increased the excise duty, which not only impacted the pricing level in retail sales but also made it extremely tough for imported wine to enter the market. Industry associations have taken up this matter with the Government and changes are expected in the near future.

The following table is an example of the calculation of wine duties and tariffs as charged by the Federal Government and that by the State of Maharashtra and Mumbai. It also shows the impact of such duties on retail pricing, which is marginal in spite of the reduction in the basic import duty tariff.

Maharashtra, the largest producer and consumer of wine, has been increasing taxes on imported wine in order to protect the local industry. There is also significant change in duties on liquor and wine in the state of Goa and Karnataka. Please see Annexure VI for further details.

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PRICING FACTORS:

Going by the calculation shown in the table above, the retail price for wines goes as high as 500% of the CIF value for bottled wine. It is still higher in most 4 and 5 star hotels and upmarket restaurants due to the higher margins they are able to obtain.

In Indian hotels and restaurants imported wine is sold upwards of Rs2200 (A$60) per bottle, with premium wines sold at higher prices. Up to 70% of imported wines are sold through retail outlets at Rs1200 (A$35) upwards per bottle.

There is also a one off label registration fee that has to be paid in each State the wine is to be sold. The fee is calculated on the maximum retail price and varies from State to State.

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EXPORT

Indian vineyards have tremendous potential for wine production and have gained popularity in the international market. Though the French, Italian, Spanish and American wines dominate the international wine markets, Indian wines too hold a distinguished position and are relished the world over. The wine industry’s growth is evident from the fact that Indian wines are presently being imported by many countries namely Malaysia, the UAE, Japan, Bhutan, Germany, USA, the UK, Sri Lanka, Maldives and New Zealand. The Indian wine industry is expected to create a strong identity for itself in the near future. APEDA continuously strives to encourage the export of this commodity.

Export to India from major Suppliers(1000 Liters)2002 2003 2004 2005 2006 2007 2008 2009 2010

Australia 89 148 211 255 632 1335 1054 451 722France 410 552 571 950 881 1,125 906 879 587Italy 45 35 97 149 254 328 273 186 269United states 64 241 124 133 286 558 156 135 250Singapore 4 26 16 20 37 25 75 159 214Chile 78 145 230 143 104 176 180 143 187South africa 27 34 17 63 48 516 686 54 152Spain 45 19 23 36 62 105 108 95 129Argentina - 3 13 11 90 55 41 40 39UK 44 67 42 50 52 45 70 37 38New Zealand 5 11 17 16 9 25 20 24 36Total 811 1,281 1,361 1,826 2,455 4,293 3,569 2,203 2,623

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SUPPLY CHAIN

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FORECASTING

Indian - Domestic Availabity Of Wine (1000 liters)Year 2004 200

52006 2007 2008 2009 2010 2011 2012

Production

4725 5850

8550 11250

11700

12600

13000

11000

11500

Imports 874 1421

1836 3067 3307 1795 2551 4439 4400

Annual Supply

5599 7271

10386

14317

15007

14395

15551

15439

15900

LessExports 280 483 752 1050 1732 2093 696 1114 1100Equals

Domestic Availabit

y

5319 6788

9634 13267

13275

12302

14855

14325

14800

2004 2005 2006 2007 2008 2009 2010 2011 2012

5599

7271

10386

1431715007

1439515551 15439 15900

Annual SupplyAnnual Supply Linear (Annual Supply)

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DEMAND FOR WINE

Indian Wine Consumption(9L Cases)year 2004 2005 2006 2007 2008 2009 2010 2011

domestic47000

052000

063000

075000

0920000 1180000 1440000 1700000

imported 8000010000

012000

015000

0180000 2200000 260000 300000

total55000

062000

075000

090000

01100000 3380000 1700000 2000000

Based on the above table the values were forecasted for the following 5 years.

2012 2013 2014 2015 2016 2017 2018

Forecasted value = FORECAST FORMULA EXCEL

1718497

1697080

1787719

1911456

2028041

1834663

1853924

It is seen from the chart below that the trend line is increasing steadily based on the values forecasted. We can conclude that the wine market is growing and hence carrying a huge potential.

`04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18

Future Forecast

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SULA VINEYARD

Sula Vineyard, which is the largest wine producer of India, decided to make its mark in the wine market of Sikkim. The wines by Sula Vineyard are distributed by Overall Traders, which is the largest distributer of Sikkim. The Sula wines will be available at the leading retail outlets, hotels as well as restaurants of India. 

The entry of Sula Vineyard with an assortment of wines will be present for the Indian audience in the North Eastern regions. It is important to note that a lot of people observe the benefits of wine for not just celebrations but also for the purpose of health. The Sikkim market has a lot of potential for the wines. 

Sula Vineyards as of now enjoys 70 percent share in the Indian market. Its wines are also exported to 20 countries in Canada, United States, Middle East, Europe as well as Asia. The Sula Vineyards also won a range of awards. The recent award that it received was a Silver Medal at the Decanter Asia Wine Awards.

We are designing the supply chain for Sula vineyard for the import of RED WINE from BRL Hardy, Australia.

Details Wine(ltr)

Annual Import of wine to India 2012 4400000Import from Australia(8.74%) 384560Red Wine(67% of total wine) 257655

Red wine imported by Sula(70%) 180500total number of cases( 1 case = 9Ltr) 20100

Total number of bottles(12 bottle(750ml)/ case)

241200

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SERVICE LEVEL AGREEMENT

Service Level Agreement Overview

This agreement represents a Service level Agreement between Sula Wineyard and BRL

Hardy for the provision of Wine from Adelaide region in Australia.

This agreement holds true for all contracts and orders unless otherwise directed by a

revised contract that terminates this agreement or till the document is valid.

SAMPLES

When samples are called for, an average of 15 samples of the wines properly labeled in a

model bottle (750 ml) should be sent to the addressee (importer). These samples shall should be

sent at exporters own expense and risk.

The sample bottle will be used to create the labels for sales and distribution of final

product.

Mode of delivery in case of the sample wines should be the same as full case delivery.

DELIVERY PERIOD

Delivery period for the wines would require a period of 49 days. Delivery must be made as per

request made by Sula Wineyards

EXCHANGE RATE FLUCTUATIONS

Since the transaction will take place in foreign currency, Sula Wineyards will arrange the

forward cover as per its internal policies.

All invoices relating to exchange rate claims should be followed by documentary evidence

which includes NAB closing rates and a detailed calculation indicating the amount relating to ROE

adjustment.

ORDER

Goods shall be delivered only upon receipt of a official written order from Sula Wineyards.

The accounts shall be rendered as official order. The right to withhold payment is maintained by

Sula Wineyards on any transaction not initiated with an order.

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PACKAGING AND TRANSPORT

BRL Hardy is responsible to ensure that the wines are transported properly as per the

following requirements.

180500 litres shipped in 20 ft container, 24000 litres, and a total of 8 containers

Transportation must take place through Sea Freight.

Agency: Maersk

LABELING

The label must contain the following details :

- Name and address of the importer

- Generic or common name of the product

- Net quantity in terms of standard units

- Month and year in which the commodity was manufactured, packed or imported

QUALITY

Wine Supplied shall be in accordance with, and BRL Hardy should guarantee that they are equal in

accordance to samples and specifications stipulated in the contract or the order.

The Wine should be of ‘Premium’ grade and should be filled in unused and new bottles.

GUARANTEE

Unless specified in the contract, BRL Hardy shall guarantee that no faulty grapes or bad

workmanship is used in the manufacturing of the wine. Should the guarantee not be complied with,

Sula Wineyards has the right to terminate the contract without prior intimation.

The period of guarantee shall commence from the date of delivery as determined by the order.

The liability of BRL Hardy under the guarantee shall cover the delivery of defective goods.

PAYMENT FOR GOODS

Right to pay for goods is reserved by Sula Wineyards on or after date of delivery. Sula Wineyard will

pay for the goods within 30 days of date of statement.

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INSPECTIONS, TESTS AND ANALYSES

BRL Hardy shall be open to inspection during any stage of production or completion. The

premises of BRL Hardy should be open to inspection by a representative from Sula Wineyard or a

representative from any organization acting on behalf of Sula Wineyard.

Inspections and tests can be conducted prior to dispatch or can be ordered as samples to

be shipped to Sula Wineyard.

Payments for the inspection, test and analyses shall be borne by Sula Wineyards, unless

and until the quality has been compromised by BRL Hardy. In that case, the costs shall be borne by

BRL Hardy.

Besides the cost of inspection, BRL Hardy will face the possibility of termination, if not

rejection of the bottles.

Sula Wineyards has in its capacity the right to reject the product after delivery. The cost of

transportation and other expenses in this case shall be borne by BRL Hardy.

DOCUMENTATION

BRL Hardy warrants that all licenses and required documentation required in connection

with export of wine shall be available at the time of delivery.

BRL Hardy must keep all documents confidential and shall use the documents solely for the

performance of the contract.

COMPLIANCE WITH LAWS

BRL Hardy shall take responsibility and will defend / hold Sula Wineyards harmless in case

there is any failure of product or there is a failure to conform to any laws, orders, requirements,

standards or regulations.

TRANSFER OF RISK

BRL Hardy is responsible for the physical security of the product upto the point where all

the conditions of delivery is met as per the contract.

The risk of destruction of goods (whole or partially) shall be undertaken by BRL Hardy till

the point the product is delivered and the product is deemed to be transferred to Sula Wineyards.

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In case the product is destroyed or suffers deterioration of goods under the control of BRL

Hardy and it is under the terms of insurance, BRL Hardy will be fully liable, in case he fails to report /

claim the stipulated insurance.

PAYMENT OF DUTIES, LEVIES AND TAXES

Payment of duties, levies and taxes at the port will be undertaken by Sula Wineyards

unless BRL Hardy indemnifies against the liabilities for the payments of such duties, levies and taxes.

STAMP DUTY, BANK CHARGES, ETC

Where all applicable, BRL Hardy is responsible for such payments.

ROYALTIES AND PATENT RIGHTS

BRL Hardy is responsible for all expenses and other liabilities in regard to royalties and

trademarks in respect to products supplied to Sula Wineyard.

Any property supplied by Sula Wineyard during the manufacture and delivery process

remains the property of Sula Wineyard and should at the expense of BRL Hardy be returned back to

its original owner.

FAILURE TO COMPLY WITH CONDITIONS AND DELAYED EXECUTION

Should there be a failure in compliance to the conditions set in the contract or the SLA,

Sula Wineyard holds the right to cancel the contract.

Upon any delay beyond the contract the period, Sula Wineyard has the right to purchase

the same product from a substitute or other supplier. Sula Wineyard, also, has the right to reject

any shipment received later and BRL Hardy will have to bear the expense for the same.

Remedies in case of failure

- BRL Hardy shall bear any adverse difference in price of the Wine. These amounts plus

any other damages suffered by Sula Wineyard, shall be paid by BRL Hardy. Sula

Wineyard on demand deduct such amounts from monies (if any) otherwise payable to

the BRL Hardy in respect of products rendered or to be rendered; or

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- if the BRL Hardy fails to supply the goods or render the service within the period

stipulated in the Contract, Sula Wineyard has the right, unless otherwise agreed upon,

either to deduct as a penalty from the value of the contract sum an amount of 1%

thereof per day for the period of delay or to claim any damages or loss suffered in lieu

of such penalty.

No penalty or damages shall be claimed in respect of any period of delay which BRL Hardy can prove to be directly due to foreseen circumstances

If the delivery of the product is likely to be delayed or is in fact delayed on account of any of the reasons, full particulars of the circumstances shall be reported forthwith in writing to Sula Wineyard. BRL Hardy will specify the extension of time for the delivery of Goods that it requires from Sula Wineyard.

BREACH

If either Party breaches the Contract or these Terms and Conditions and fails to remedy such breach

within fourteen (14) days of written notice from other Party calling for remedy,

The non-breaching Party shall be entitled, to cancel the Contract without notice or to claim

immediate specific performance of all the defaulting Party's obligations, whether or not due for

performance, in either event without prejudice to the aggrieved Party's right to claim damages.

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WAREHOUSE AND LOGISTIC NETWORK

Grapes grown at Hardy's McLaren Vale, Tintara

and Old Reynell wineyards

The fermented and aged wine Merlot is

transferred into Flexitanks to be bulk

distributed

The 8 flexitanks stored in the Bonded warehouse

in Port Augusta in Southern Australia

The flexitanks to be shipped in 8 20 ft

containers

The consignment to be sent to Singapore Port

From here it is shipped to JNPT, Nhava Shena

Port, Mumbai

To be shipped to Sula Wines warehouses in

Bhiwandi and Kondgaon

Bottling done under the label Hardy's Merlot Red

Wine

Finished Goods sent to Sula Wines Nashik

Sent to retailers and 5-star hotels in Bangalore, Chennai, Mumbai, Delhi

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DESIGN LOGISTICS AND DISTRIBUTION NETWORK

1.BRL Hardy to port Adelaide by road

2.Port Adelaide to Port Singapore by sea

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3.Port Singapore to Port JNPT, Mumbai

4. From port of Mumbai to Sula Vineyard, Nashik by road.

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PACKAGING

PACKAGING FOR TRANSPORT OF WINE OVER LONG DISTANCES:

While transporting wine over long distances wineries consider many issues:

minimising wine spoilage avoiding breakages Expense Convenience reducing energy use, and CO2 emissions

There are three options for wine producers wishing to transport wine in bulk over long distances

ISO tanks- which are reusable steel tanks

ISO tanks are stainless steel vessels which are designed to fit directly onto standard trucks and can readily be transferred to rail or sea transport. The vessels used for wine have a capacity of 26,000 litres, slightly larger than flexitanks. The tanks are reusable and are designed to be very robust as they can also be used to transport hazardous materials. The stainless steel used for the tank’s construction will not contaminate the wine but, being reusable, must be cleaned between uses.

Flexitanks- which are disposable plastic bags that are fitted inside a standard 20ft container

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Flexitanks are flexible bags that are fitted into a standard 20ft (6.25m) container. Most bags are used once, but in some circumstances the bags can be re-used. The materials used to make the bags vary, depending on the product being transported. Considerable development work has been done to find suitable materials to hold wine without impairing its quality. The latest systems are constructed of polyethylene with a barrier material of ethylene vinyl alcohol (EVOH) copolymer. The bags now offer a very low oxygen migration rate and are an effective barrier to the organic materials that can taint wine, for example naphthalene.

Flexitanks come in a range of sizes, the largest of which having a capacity of 24,000 litres filling a 20ft (6.25m) container. Flexitank operators claim that their system offers logistical advantages over ISO tanks, and that in most cases they are cheaper to operate. ISO tanks are inherently more robust than flexitank systems which can be damaged during shipping by the movement of the bag within the container.

TRANSPORTATION OF WINE IN BOTTLES

Standard 20ft container holds approximately 13,000 bottles. It requires effective packaging against breakage and temperature. Packaging options for bottles

o EPS

o Corrugated Cardboard

o Molded Pulp

o Formed Plastic Trays

Transporting in bottle has disadvantages:

It costs more to send bottles than to send in bulk.

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Spoilage: Oxidation, reduction due to temperature fluctuations during transportation.

The process of transporting wine in bottle has high energy use and CO2 emissions.

Advantages of transporting wine in bulk:

Advantages

Transporting wine in bulk is cheaper than transporting in bottle.

Transporting wine in bulk is more environmentally friendly than transporting bottles

We will be using Flexitanks for transporting the wine. The economic benefits of bulk wine shipping are significant. Shipping wine in a flexitank reduces transportation costs significantly because a flexitank can hold the equivalent of about 32,000 750ml bottles of wine—significantly more than the 12,000–13,000 bottles of wine that fit in the same size shipping container. It also eliminates costs associated with damage to bottles and labels while in transit and can result in reduced warehouse costs as flexitanks can be used to store wines before export or prior to bottling. Bulk shipping wine and bottling it in the destination market can also reduce import duties, bottling costs and foreign exchange exposure.

Wine shipped in bulk is less likely to experience temperature fluctuations during sea transportation because a single large volume of liquid has a greater thermal inertia than a small volume of liquid. This helps protect the wine against damage associated with thermal shocks. Shipping in bulk and bottling at destination can also mean that the product in the store is fresher and has a longer shelf life compared with wine shipped in bottles; since the wine’s entire shelf life is spent in the country of its sale, risks of damage to bottles and labels in transit are minimized.

HOW IS WINE LOADED INTO AND UNLOADED FROM A FLEXITANK?

Prior to arriving at a loading site, a container is selected and prepared. Containers must meet specification requirements and are inspected to ensure they are clean and free from damage. Then, the flexitank, bulkhead, and value are installed within the container—a process which takes no longer than 45 minutes on average.

After the flexitank is installed, the container is then transported to the winery and the loading of wine can begin. Before the supply line and coupling is attached to the flexitank valve, the entire area is sanitized. This is particularly important for food-grade products such as wine.

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Wine is pumped through a hose directly into the flexitank. The loading process can take between thirty minutes and three hours, depending on the pump and hose equipment being used. It also depends on other variables such as the distance between the flexitank and the holding tank. During the loading, photographs are taken of the container and the flexitank so that the entire process is properly documented to ensure compliance with quality control and health and safety requirements.

Once the flexitank has been loaded to capacity, the hose and coupling is disconnected. Samples, if required, can be drawn directly from the loaded flexitank at this stage. This is achieved by using a custom-made valve cap with a built-in tap. Final checks and photographs are taken before the container door is finally closed and sealed, ready for departure. The container is now ready for shipping and can be transported on a container ship or via rail/truck as any normal container would.

On arrival at destination, the discharge and unloading process is a mirror image of the loading process. The wine can be pumped out directly into a storage unit, ready for bottling, or the flexitank can be used as a temporary storage facility.

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REFERENCES

1. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Wine_New%20Delhi_India_4-7-2011.pdf

2. http://www.imd.org/news/Sula-Vineyards-and-the-Indian-wine-revolution.cfm

3. http://www.jagranjosh.com/current-affairs/sula-vineyard-the-largest-wine-producer-of-india-decided-to-enter-sikkim-market-1374142905-1

4. http://www.tradingeconomics.com/australia/cost-to-export-us-dollar-per-container-wb-data.html

5. http://www.infodriveindia.com/india-import-data/wine-import-data.aspx

6. https://www.wineaustralia.com/en/Production%20and%20Exporting.aspx

7. http://www.imd.org/news/Sula-Vineyards-and-the-Indian-wine-revolution.cfm

8. http://worldfreightrates.com/en/freight

9. http://www.searates.com/

10. http://en.wikipedia.org/wiki/Accolade_Wines

11. http://www.winepros.com.au/jsp/cda/countries/region_topic.jsp?ID=1423

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ANNEXURE I

MAJOR WINE IMPORTERS

Although there are probably more than 100 importers in India, the following are the major companies:

Brindco International: Based in Delhi, is reported to have imported around 25,000 cases of wine. They currently have arrangements with approximately 60 wineries from eleven countries including:

Baron Philippe de Rothschild, E.Guigal, Albert Bichot and Louis Jadot (France)Allegrini, Marchessi di Barolo and Gaja (Italy) Joseph Phelps, Francis Coppola (California)Leeuwin Estate, Wolf Blass and Peter Lehman (Australia)

Brindco is a key vendor to some of the top hotel chains in India including Taj Hotels and the Welcome Group.

Mr. Aman DhallManaging DirectorBrindco Sales LimitedS35 Okhla Industrial Area Phase 2New Delhi.11 00 20Tel: 91 11 4161 6424Fax: 91 11 26 38 8818Mobile: +9198100 72050E-mail – amandhall@brindcolimitd.com

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Sonarys Co-Brands: The company imports approximately 20,000 cases of wine per year and assembled a good portfolio of 350 labels from over 45 wineries in 11 countries. Some of the brands Sonarys handle include:

Arrowwood, Clos du Val and Robert Mondavi (California ) Montes (Chile)Falvey, Hugel et Fila, Domaine Laroche and Pascal Jolivet (France) Antiori, Umberto Cesari, Micael Chirlo and Prunetto (Italy)

The company has established good connections with most of the upscale tourist hotels in the major cities.

Mr Sanjay Menon CEOSonarys Co-Brands Pvt. Lt.d, 12 Creative Industrial Estate NM Joshi Marg, Lower Parel, Mumbai.400 022Tel 91 22 5666 9111Fax 91 22 5666 9100E-mail – sanjay@sansula.com Web: www. sansula.com

Global Tax Free is a family business based in Delhi and import approximately 15,000 cases per year. Their portfolio includes:

Taylor’s (Australia)Trivento (Argentina)Concha y Toro of Chile (Chile)Casa Givelli Cassetta and Fontella (Italy)Laurent Premier Jean Claude Boisset , Joseph Droubhin, Rene Barber andCalvet (France)KVW (South Africa)

Mr Mukul Mehra PresidentGlobal Tax Free Traders Inc87 Sainik Farms, Central Avenue New Delhi.110 062Tel: 91 11 6597 9222Fax: 91 11 2955 2574E-mail: info@globaltaxfreetraders,com Web : www.globaltaxfreetraders.com

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Moet Hennessy: Based in Mumbai, Moet Hennessy are importing in the region of 10,000 cases per annum. Their portfolio largely consists of wines from wineries owned by their parent company, LVMH.

They also represent:

Terrazas (Argentina)Casa Lapostolle (Chile)Green Point and Cape Mentelle (Australia)Cloudy Bay wines (New Zealand)

Mr Ashiwini DeoMoet Hennessy (Cape Mentelle) 501 E, Dr A B RoadWorliMumbai 400025Mbl: 98213 12556Email: ashwin.deo@ap.moet-hennessy.com

Sovereign Impex; The Delhi based importer’s current portfolio includes:

Vakdivieso and Santa Ema (Chile )Lungaroti, Pio Cesare, Fotonari and Mastroberardina(Italy )Wildekrans Wine Estate (South Africa)

Mr Naresh UttamchandaniSovereign Impex Pvt. Ltd.,C.15 Safdarjang Dev Area (2 Floor),New Delhi 11 00 16Email nvu@hotmail.comMobile 91 98110 42416Web: www.sovereignindia.co m

Sula: Although one of the top Indian wine producers, the company also imports approximately 10,000 cases per year. To date they have focused on importing brands produced by the Constellation Group. The following are currently sold in India:

Two Oceans ( South Africa)Hardy’s (Australia)Trimbach, Forrtant and JC Le Roux (France) House of Ruffino (Italy)Sho Chuku Bai (Japan)

Mr Rajeev Samant,CEO - Sula VineyardSamant Soma Wines Pvt. Ltd1 & B2 Matulya Centre CSenapati Bapat Marg,Lower Parel,Mumbai.400 013Tel 91 22 6660 6685Fax 91 22 2492 6064

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Mohan Bros: Mohan Bros supplies wine to the diplomatic corp as well as duty free shops and ships chandlers.

Mr Rohit MehraPartnerMohan Bros. Pvt. Ltd.,Plaza Cinema Bldg (2 Floor)Connaught Place,New Delhi. 11 00 01Tel 91 11 4151 3434Fax 91 11 4151 636

RR International: is another supplier of wine to embassies, airport duty free shops, airlines and ships chandlers. They also supply hotels and have boned wharehouses in Delhi and Mumbai.

Mr S GargDirectorRR InternationalB.90A Greater Kailash I,New Delhi.11 00 48Tel 91 11 2643 1058Fax 91 11 2623 8354

Munjal Bros. is the Indian agent for Castel and Pernod Ricard of France.

Mr Harminder Singh MunjalDirectorMunjal Bros Pvt. Ltd.,356 Pappargaj Industrial EstateNew Delhi 11 00 92Tel 91 11 2216 9289Fax 91 11 2216 9288

Aspri Spirits also import wine as well as spirits. They are the Indian agents for Absolut Vodka.

Their wine portfolio includes -

De Bortoli ,Sacred Hill and Windy Peak (Australia)Campari and Cinzano (Italy)

Contact details

Mr Arun Kumar,Aspri Spirits Pvt. Ltd.,N230 Ground FloorGreater Kailash INew Delhi.11 00 48Tel 91 11 4163 3981Fax 91 11 4163 1713Mob 91 98104 43440E-mail delhi@aspri.orgWeb – www.aspri.or g