"Wine is an alien drink," says Kapil Grover, director of Grover Vineyards. "It's not going to the Indian village. It's going to stay in the top 2 percent of the population."
Still, that accounts for more than 20 million people — roughly the population of Australia. "I think the next two or three generations of my family will be kept very busy," Grover said.
Farmers in Maharashtra are lining up to convert their crops into wine grapes, and fields of merlot and cabernet sauvignon are sprouting across the hills of Nashik, a region with a comfortable climate and friendly regulatory laws. Farmers say their profits have doubled since they started selling to wineries.
The wine business is still relatively small, especially considering India's population of 1.1 billion. In 2006, Indian winemakers sold roughly 940,000 cases of wine domestically and 60,000 cases overseas, up from 530,000 domestic cases and 30,000 overseas in 2003, according to industry figures.
By comparison, American vintners shipped 217 million cases to domestic markets in 2007 and another 50 million cases overseas.
Indian winemakers face a significant challenge gaining a foothold in this country where alcohol is still largely frowned upon for religious and cultural reasons, and many of those who do drink — nearly all men — are just fine with their whiskey-and-sodas.
But winemakers of all sizes, from international spirits giants to mom-and-pop home brewers, see huge potential in India's booming market.
With sales accelerating, major global players have recently jumped into the grape-stomping barrel, including Seagram India Ltd., a subsidiary of spirits giant Pernod Richard Group; UB Group, brewer of Kingfisher beer and the world's second-largest alcohol manufacturer; and Diageo India Ltd., owned by the company behind Guinness stout, Johnnie Walker whiskey and Smirnoff vodka.
All three recently launched Indian-made wines, and while it's too soon to tell how they'll shake up the market, the investments indicate a new phase of competition.
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