Rama Krishna Sangem
Craft wine is a product that is fast gaining popularity among the elite. Once EU-India FTA comes into force, we may see more and more European wine brands in our country. Till then, you can think of this niche product for business. We, at Excel India, would like to curate some information on business opportunities for entrepreneurs in craft wine line. Here is this:
Starting a craft wine business in India is a high-investment ($₹$4–7.5 crore), high-growth opportunity in a market expanding at 20-25% CAGR, largely driven by Nashik and Bangalore. Success requires navigating complex, state-specific regulations, securing licenses, and building a strong brand, with profitability often achieved through direct-to-consumer sales and wine tourism.
The Indian wine market is valued at roughly $US$150–$238 million, growing rapidly due to changing social norms and a younger consumer base.
Production Hubs: Maharashtra (specifically Nashik) is the primary hub, followed by Karnataka (Bangalore, Hampi), Andhra Pradesh, and Himachal Pradesh.
Investment Required: Setting up a small winery requires an estimated ₹4–7.5 crore. A smaller, 50,000-bottle capacity operation may require ₹2.5–3.5 crore, with vineyard development costing ₹40–50 lakhs. Key Regulations: Alcohol is a state subject; licenses, label registrations, and tax policies vary, necessitating careful legal planning.
Profitability & Sales: While competitive, profitability is high, particularly when selling directly via retail or wine tourism, which can yield up to 50% net income compared to lower margins in restaurant/retail distribution.
Want to start a new project?
To launch a new craft wine brand, all you need to do is a lot of homework and field work. Develop a solid business plan focusing on niche, high-quality products to differentiate from established players like Sula, Fratelli, and Grover Zampa.
Secure land suitable for viticulture and build infrastructure for fermentation and storage. Licensing & Legalities: Obtain necessary permits, including FSSAI, Excise Department licenses, and pollution control board clearances.
Distribution Strategy is more important. Set up distribution networks in key states, focusing on hotels, restaurants, and retail stores.
New trend of wine tourism
Cultivating wine tourism (tastings, vineyard visits) is a key differentiator for, boosting brand popularity. Premiumization: Growing demand for high-quality, craft, and indigenous fruit wines. An attractive marketing strategy is essential. After all, wine is not a basic need, but it is a culturally aspirational product. Promoters will have to highlight its health benefits too, if possible.;
Keep in mind the high import duties – as high, as 150%, which benefits domestic producers by making imported wine less competitive currently. Bur, once EU-India FTA kicks in late 2026 or from early 2027, things will be tougher for domestic promoters.
