Analysis of the Wine Industry

3427 Words Nov 24th, 2013 14 Pages
PESTLE ANALYSIS OF INDIAN WINE INDUSTRY FOR MANUFACTURING AND LAUNCHING AUSTRALIAN WINE JACOB’S CREEK IN INDIA
-Joohi Kamath
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Abstract

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Abstract
The below mentioned report is a PESTLE analysis on the wine industry in India, which is a potential market for Australian Wine Jacob’s Creek owned and produced by Orlando Wines; currently a part of Pernod Ricard Pacific, a wholly owned subsidiary of Pernod Ricard to launch a base in India and expand their business.

Pernod Ricard – The Distributor
Pernod Ricard is a French company that produces distilled beverages. It was founded in 1975. It s the largest MNC in the wine and
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India‘s federal, state and local policies have been controlling the Indian market, a factor that both encourages the growth of the Indian wine market and domestic industry while at the same time increasing the difficulty of foreign brands and their ability to penetrate into the marketplace. But there are risks and rewards inherent with this emerging market.
The import duty on bulk wine was zero from 2001 till 2003/04. In the year 2004/05 the duty for wine imported in bulk was raised to the same level as that of imported bottled wine. Simultaneously, the state excise duty on bulk wine which was Rs7 per litre was raised to Rs200 per litre, and later to 200% of CIF value. Hence the concept of bulk wine being imported then bottled in India is no longer feasible.
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.
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, through their High Commissions and Embassies in India, been making representations

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