How to Start a Wine Business in India | Complete Guide on Investment, Licensing, Tips & More
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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.
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.
Ashwini
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.
Baishali Das Adhikari
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.
Vivek Dev Jacob
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%.
Ria Sahni
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.
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