Wine pioneers in India: Two Italian vintagers invest in Riona Wines

Riona Wines Pvt. Ltd, a state of the art-winery, located in the Western federal state of Maharashta, district Sangli, of the leading wine region India is the partner of the Italian wineries. Within the scope of a joint venture, Riona signed a cooperation with Terre Cortesi Moncaro (Doriano Marchetti) & Cantina Mecella (Enzo Mecella) still before the end of 2009. Both Italian wineries from the region Marken bought a 17-percent-share of Riona of a value of 42.5 million dollars (roughly 30 million euro) in exchange for know how as well as information about cellar and vineyard techniques.

“This is the first time that international producers are working with an Indian winery”, says Hansraj Ahuja, sales executive at Riona. “We sold a rather large part of our company to the Italian partners, in order to produce together and market our wines together as well. We plan to launch 6 different red and white wines respectively on the Indian market in 2010.”

The Indian wine market is currently dominated by two producers. “Sula Vineyards” with a broad range of red, white and bubbly wines and “Grover Wines” only with red wines; both companies will now also profit from the know how of the European advisers. For some reason, however, no other international investor has dared to trust his money to the Indian market so far.

According to the Indian wine academy, a research and consulting center in New Delhi, there were only Indian investors that were interested in the Indian viticulture. Besides the imported vines from Italy, many vines planted in India came from France, however, the French were still a little suspicious, says a spokesman of the wine academy.

“The total sales in India were at about 1.4 million bottles in 2008 and 2009, of which 200.000 bottles were exported”, says a spokesman of the wine academy. “In comparison with 2008 we anticipate an increase in wine consumption of 30 percent in 2010.” This was also due to change in drinking habits of the higher Indian society, particularly young rich Indians from beer and spirits to wines instead.

For international wines, however, the Indian market will remain rather closed up. High import duties and a marketing ban make it harder for producers from all over the world to win Indian clients. “The Indian vintagers are very interested in partnerships with European colleagues”, says Reva K. Singh, editor of the only wine magazine in India (Sommelier India). “They are interested in directions and practical information, to make their wines competitive abroad. However, that is not all. They would also like to find out more about wine consumption and wine traditions as well as boost wine tourism in Maharashta. For this, they will also need the know how of the European vintagers and wine experts.” (aw.yoopress / translator cs)