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Distribution restrictions
The barriers to import remain high.
The bonded warehouses are the initial
barriers, requiring considerable financial investment and bank guarantees.
Excise bonded warehouses and a license
is required in each state. Brands have to
register each label individually, and pay
a hefty annual license fee. In Delhi
alone, the license to sell alcohol costs
Rs.5.0 lakhs ($123,000/80,000) annually. Even if the license is taken for a
month, the same amount has to be paid
before a single bottle can be sold.
These two restrictive measures set a
sufficient barrier to new entrants, who
are generally forced to use the services
of existing bonders. The commission
payable for these two services alone
varies between 10-20% of the cost of
wine. This affects the viability of the
small importer, who is obliged to rent
these services. Yet, the new importers
are making a place for themselves: At
the break even of 1200-1500 cases sold
annually, there are few exits and the
number of importers is steadily going
up, even though the market isnt big
enough for everyone to thrive.
Distribution pattern
38
Company description: The Mehra family started the company as a liquor trading company
and, after splits in the nineties, entered the
wine business. Primarily Indias biggest distributors for Moet & Hennessy, the company
has now taken steps to expand the wine portfolio and recapture some of the lost business.
8 Sula Selections
7,000 cases
9 Fine WinesNMore
13,000 cases
6,500 cases
406, Raheja Plaza, Off New Link Road, Andheri West, Mumbai 400053
Phone: +91 22 40 33 00 00, www.finewinesnmore.com
5 Hema Connoisseur Collections (P) Ltd. 12,500 cases 10 TT&G Trading (P) Ltd.
7,500 cases
Nashik Vintners Pvt. Ltd., 1 Matulya Center C, Senapati Bapat Marg Lower Parel,
Mumbai 400013, Phone: +91 25 32 23 16 63, www.sulawines.com
21,000 cases
2nd Floor, Plaza Cinema Building, Connaught Place, New Delhi 110001
Phone: +91 01 12 33 22 404
301- D & E, A Wing, 3rd floor, Poonam Chambers, Dr Annie Besant Road, Worli,
Mumbai 400018, Phone: +91 22 40 79 65 00, www.lvmh.com
CEO: Ashwin Deo
Contact person: Gaurav Bhatia, Marketing
Head
Established: 2001
Major brands: Moet & Chandon, Dom
Perignon, Veuve Clicquot, Krug, Cloudy Bay,
Cape Mentelle, Green Point, Terrazas,
Casa Lapostolle
24,000 cases
12,000 cases
Tower B, 7th Floor, Global Business Park, Mehrauli - Gurgaon Road, Gurgaon 122002, Haryana
Phone: +91 12 42 35 80 018, www.pernodricardindia.com
51,000 cases
39
INDIAN DISTRIBUTION