How to Start a Wine Business in India? | Complete Guide on Investment, Licensing, Tips & More

Abinaya Arangarajan Abinaya Arangarajan
Feb 2, 2022 6 min read
How to Start a Wine Business in India? | Complete Guide on Investment, Licensing, Tips & More

Some businesses take a 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 business or winery was quite a renowned business in the 18th and 19th centuries, as it is cited that those who are owning any wineries or a wine business must be highborn. Β 

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
FAQ

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 it.

There are two ways, where a businessman or an entrepreneur can look into starting a wine business- either lending land to harvest wine or buying a thriving winery.

In case, you have superfluous funds in the idea of running a wine business, then acquire wineries- where the building or a place produce fine wine for years. So, plan according to the capital you want to invest in the wine business.

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 licence is not procured, the wine business or wineries have no right to proceed with its market of wine in the country.

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, wine pallets to arrange the wine according to their categories like- number of years, flavoured wine or enriched wine etc.

Apart from that, a wine business requires an office to maintain its record of transactions like a computer, staff to supervise the office as well 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 direct 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.

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 in a reliable and creative way like selling a romantic-flavoured wine to a couple by coming up with a romantic tale behind the wine taste.


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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.

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 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 charge, 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 a period of 1 year, and the license should renew each year in order to function wine business in the nation.

According to GST, all the alcoholic products subsumes- Wine is levied tax at 18% rate and state & local excise tax differ in each state of India but doesn’t exceed 25%.


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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 and there’s no turning back because you will have already reached one of the top-richest businesses in the world.

FAQ

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 winemaking 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.

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