wine project
TRANSCRIPT
Project Report for setting up Wine Industry,
Gowaribidnoor,
Bangalore.
Submitted
To
Chairman
Karnataka Wine Board
(A Govt. of Karnataka Undertaking)
# 78, Seetalakshmi Towers
Mission Road, Near Richmond Circle
Bangalore – 560027
Submitted
By
Gautam Kalothia
Srinivas Rao .N
Satish Chandra
Contents:
1. Introduction
2. Project at a Glance
3. Features
4. Production Facilities
5. Economic Feasibility 6. Location
7. Manufacturing Process
8. Product Mix
9. Quality Control And Rating System
10. Financial & Economic Aspects 11. Marketing Analysis
12. Financial Analysis
INTRODUCTION:
“Before you came, all things were what they are…
The sky was sight’s boundary…
The road, a road…
The glass of wine, a glass of wine!”
- Faiz Ahmed Faiz’s (1911-1984)
Wine – An ancient drink associated and described with king’s era and popularly known as “Varuni, Soma Rasa, Madya, Madhu or Mai”. The words ‘filling the cup’ meant living a full life of power and success or joy. Wine is basically an alcoholic beverage made by grape juice. It is a drink which comes in a bottle after long under gone process of fermentation which is truly an art of a wine maker. A perfect wine is in itself a reason to enlighten and hence it is the most popular beverage associated with happiness, celebrations and festivities. And even today wine, as a drink is associated with elite group of society.
Today, wine is getting promoted as a healthy drink over other hard alcoholic drinks available in the market. Studies have shown wine potentially prevents or delays the onset of cancer, eliminate bacteria which causes stomach poisoning also dilutes
cholesterol in the blood and thus reduces the chances of heart decease.
The Indian wine industry has been steadily growing over the last ten years. Wine is gradually becoming a part of urban Indian life style. Rising incomes of Indian population, changing demography and exposure to new culture is adding to the higher consumption. The market for wine is expected to grow at over 25% per annum.
Grape wine making is gradually picking up especially in India. Apart from world market, India is a very good market. Wine consumption in the country is still at nascent stage. Wine is now accepted as a health or social drink and its consumption is increasing gradually.
Our varieties, Shiraz, Cabernet Sauvignon, Zinfandel, Sauvignon Blanc, and Chenin Blanc, were carefully chosen as good matches for our climate and growing conditions. The warm days allow our red varieties to achieve mature flavors and smooth tannins, the grapes are not picked until the seeds are fully brown and no green flavors remain. The stones of our terrier are reflected in our white wines, with bright acidity and a mineral finish being the hallmark of our Sauvignon Blanc.
India is unique among other wine regions in the absence of a winter dormancy period. Instead of loosing their leaves following harvest our vines are
pruned again in April before the start of the monsoon. During the monsoon the vines grow more slowly as the sun is often hidden behind the thick clouds blown over the Ghats from the ocean. This second vegetative growing season allows our vines to develop more quickly and establish deeper roots to support the vine during the long dry season. The process of manufacturing wine starts with destemming the grapes and crushing them. The extracted juice is then drained from the grapes and skins. The juice and natural yeast are added to steel vats for fermentation process. The juice that is now called as ‘must’ ferment at controlled temperature for a couple of months until the sugar is gone. The dead yeast is now removed. The wine now can be kept fresh or aged in stainless steel vat. The remaining particles are removed from the wine by draining and filtering. The wine is then bottled and labeled.
The shape and color of the wine bottled has their own characteristic. The wine can be bottled into bottle of different size and attractive shapes. The bottle are labeled and sealed by wooden corks such bottles are then marketed.
PROJECT AT A GLANCE
1. PROJECT : Grape Processing & Wine
Manufacturing Unit
2. CAPACITY : 110000 liters
3. LOCATION : Gauribidanur, Bangalore Rural4. MAN POWER : 13 nos.
5. TOTAL PROJECT COST : Rs.195.50 Lacs.
a. Capital Investment Rs.177.50 Lacs.
b. Margin Money for Working Capital Rs.18.00 Lacs.
6. MEANS OF FINANCE :
a. Promoter’s capital is Rs.45.00 Lacs.
b. Term Loan from bank/finance Institute Rs. 94.50 Lacs.
7. CAPACITY UTILISATION :
Year PercentageWhite Wine
Red Wine
Port Wine
Cons. Wine
Cons. Wine
1 90 70 70 90 902 90 70 70 90 903 90 70 70 90 90
4 90 70 70 90 905 90 70 70 90 906 90 70 70 90 90
8. TURNOVER :
Year Value (Rs. In Lacs.)1 50.402 492.933 492.934 492.935 492.936 492.93
9. TERM LOAN : Rs.94.50 Lacs.
10. WORKING CAPITAL LOAN : Rs.29.50 Lacs.
11. LOAN REPAYMENT : Six year including one year as a
moratorium period.
It is well known that wine industry in India is at a developing phase. The industry is not tapped to the fullest. India has got great resources for wine making. Wine making business is going to grow with a very high pace in India. The new wine policy has opened door and future in wine making in Karnataka, India. It is seen that there is a demand for wine in India and due to less production in India wine is
imported in India from countries like France, Italy and Australia.
In India, we got all resources for manufacturing wine and enormous potential for grape processing and wine manufacturing industry in Karnataka. This scenario is promising to new manufacturing units.
THE PROJECT:
The proposed project is to set up a Grape processing and Wine manufacturing industry.
LOCATION:
The proposed production unit will be located at Gauribidanur, Bangalore Rural, Karnataka.
CLASSIFICATION OF INDUSTRY:
The unit will be in the Agro based processing industrial Sector as SSI unit.
CONSTITUTION:
This is a Private Limited Company.
PRODUCT MIX:
The unit proposes to manufacture different types of wine.
Product Total Installed Capacity
Alcohol content %
White Wine 40000 12-14Red Wine 40000 12-14Port Wine 10000 17-18Concentrated Wine
10000 5-7
Concentrated Wine
10000 0
REQUIREMENT OF PRODUCTION FACILITIES:
1. Land : One Acer
2. Factory Building : 4500sq.ft.
3. Principal Machinery :i. Fermentation Tanksii. Reactoriii. Bottling Machineiv. Chilling Plantv. Centrifugal Pumpvi. Destemer Machinevii. Filter Pressviii. Generator Setix. Automatic Control Systemx. Heat Exchanger
xi. Laboratory Equipments
4. Power Requirement : 100KW. The unit is proposed to avail required power from KSEB.
5. Employment : For Manufacturing -09
For Administration -03
OTHER ASPECT OF THE PROJECT:
a) Commercial : The project has good scope at present and also in future. It can be seen from details of future potential of the product as given in project there shall be continuous demand for the product in the market.
b) Technical : Technically the unit is most feasible. The company is availing services of expert
technical and process consultants in implementation of the project. The unit is also equipped with the stare of art machinery and other infrastructure facilities.
c) Financial: The proposed project is financially viable. The financial planning of the project has been made after taking into account all the aspects of the project including its sensitivity aspect and scheme has been formulated ensuring that it is an economically viable project.
PROJECT IMPLEMENTATION:
Steps to implement the project have already been initiated. The promoters have already applied in for license. The necessary statutory permissions from various governments’ authorities will be taken after allotment of the plot. The unit is expected to take out its trial run production in the month of Jan 2009.
The promoter is going to appoint Mr. Sudhakar Choudhry as a technical consultant for the project. Detailed bio-data has been annexed herewith.
APPRAISAL OF TECHNO:ECONOMIC FEASIBILITY OF THE PROJECT
EXISTING GOVERNMENT POLICY RELATING TO THE PROPOSED PROJECT:
The proposed project has been formulated with in the framework of the existing policies of the central and state government. The government is taking constant efforts for the development of the production of grape, grape processing activities like manufacturing of wine, juice etc. The state government has declared new wine policy to support the new upcoming wine industries.
CLASSIFICATION:
The industry fall in the category of Agro based processing industry. The permission will be obtained from Commissioner, State Excise, Wine Board and Karnataka State.
CONSTITUTION:
The unit has started its activities as Private Limited Company.
LOCATION MAP AND LOCATION ADVANTAGE:
The unit proposed to be set up at Gauribidnur, Bangalore Rural, Karnataka. Establishing the unit there would be accordingly to the existing policies and norms of Karnataka Grape Processing and Wine policy – 2007. This will encourage the food
processing industry and open new avenues to the untapped market potential have home made wine. The factory site is just 56 km away from Bangalore, which is the commercial centre of state. The state highway, air route and railway transportation facilities are thus available at a near location and the place is quite close and accessible to major commercial centers within and outside the state. The other accessible to major connecting roads, water supply, and power communication means are also available.
The other production facilities i.e. raw material, unskilled labors etc. are also sufficiently available. This area is being close the Bangalore and it would be easy to obtain the support and services. The unit can cater the needs of the prospective consumers within a radius of 400 kames. Easy availability of raw materials, labor and nearness to the market are the added advantage of this location. Apart from above the unit will be eligible for SSI unit benefits. The unit will also entitle for other benefits under Income Tax Act, 1961. Viz. Amortization of preliminary expenses over five successive years U/s 35D.
LAND REQUIREMENTS:
The unit has wanted to acquire land 1acer for its immediate operational activities and future expansion plans. The Company wants to construct the following buildings as under:
1) Factory Building : 4500Sqft.
2) Guest House : 600sqft.
3) Generator Room : 120sqft.
4) Staff Quarters : 600sqft
FACTORY BUILDING:
It has been estimated that a total built-up area about 5000sqft.would be required. This covered area will be suitably divided into separate tank hall, chilling plant area, compressor room, watchmen cabins etc. the main factory building area will be further suitably divided into various sections depending upon the production requirements, flow of material and provision for future expansion without disturbing the flow of material. It can be seen from the building plan that the necessary provision has also been made for Testing Laboratory, Stores, Administrative Blocks and other sections.
ELECTRIC POWER:
The principal machineries required for setting up the project are as follows:
Fermentation Tanks Reactor Bottling Machine Chilling Plant Centrifugal Pump Destemer Machine Filter Press Generator Set Automatic Control System
Heat Exchanger Laboratory Equipments
The type and number of different machinery have been decided upon after considering the quantities of production required and the capacities of machines. All the machineries are available with indigenous manufacturers. A turnkey job for supply erection and commissioning of machinery has been given to ENOSS EQUIPMENTS PVT. LTD. The delivery of all the plant and machinery at site is expected within 4 months from the date of order. The further details of plant and machinery required are provided in financial report.
ELECTRIC POWER:
Most of the machineries would run on electric power. Based on motive power required for operating different machines, it has been estimated that the unit will require power connected load of 100 KW maximum for carrying out the entire production activities and to support the future expansion plan of production.The required power supply will be obtained from the Karnataka State Electricity Board. The necessary application for the same will made to the board after the allotment of the plot from KIDC.
WATER:
Water requirement of the unit is mainly for steam generation, bottle washing in the main factory premises, for chilling plant and for drinking, washing,
sanitation and other requirements of the workmen and staff. The required quantum of water is made available from KSWEB.
MANPOWER REQUIREMENTS:
For managing the entire project, it has been estimated that apart from one highly qualified and experienced Factory Manager, who will head the technical and production process about 9 personnel including plant operators, engineers, skilled and unskilled worker will be required for manufacturing section. On the administrative and marketing side another 4 persons will be required. This manpower can very well achieve the desired production targets. The capable manpower will be made available in the beginning itself to cope with the problem of absenteeism, labor turnover, labor unrest etc. the promoters and the technical consultant of the project will provide the required training to the workers for operating the machines.
TECHNICAL KNOW-HOW:
The promoters are going to appoint an experience wine maker and ENOSS EQUIPMENTS PVT. LTD., Nashik will provide the technical know-how and maintenance support services.
RAW MATERIAL:
The main raw material required by the unit is grape. The success of the project is depends upon the continuous availability of the raw material. The raw material is available in Gowribidnoor and surrounding areas
MANUFACTURING PROCESS:
Wine making process begins with the selection of grapes of desired quality and then bringing them to the factory processing. The detail process of making wine out of grapes is discussed at length below.
Selection of Grapes:
SELECTION OF GRAPES:
Wine differs in test depending on the type of grapes, the age of the wine & also where the grapes are grown. Only specific varieties of grapes are used in manufacturing wine. The cultivation of grapes required for manufacturing wine is known as Viticulture & the place where grapes are cultivated is known as vineyard. The climate & the soil of vineyard have a significant impact on flavor of the wine. A vineyard needs to be open to plenty of sun throughout the day. The land also must have the appropriate pH for the type of grape. The winemaker can either have his own vineyard or he may enter into contract with some of the farmers. While
selecting the farmer, the winemaker should ensure that the vineyard process the entire above mentioned characteristic & must ensure that the grapes are available continuously on a regular basis. The wine maker should understand that it is beneficial to have long-term agreements with his suppliers so as to ensure the desired quality of grapes each year.
DESTEMING & CRUSHING:
After receiving the grapes of desired quality from the farmers, they are manually poured into the Destemer. Destemer is equipment used for separating the barriers from stems. It consists of a horizontal cylinder in which the grapes are poured. The equipment separates the barriers from stem so that the barriers are passed into the crusher. The crusher consists of some particles of skin. This slurry is called, as must which is then drained into the hydraulic press, which processes the must & separates the solid particles from it. Then the juice is drained into the fermentation tanks through a pipeline for carrying out the next operation.
FERMENTATION:
This is the process where the must is converted into a pure wine by succession of various yeasts & lactic bacteria. In the process of fermenting, some yeast is
generated indigenously from the grape skin, stems & the leaves because of the winery environment of press, tanks and hoses. To dominate these yeasts a winemaker has to add some selected wine yeasts ensures complete fermentation without off-doors & produces a wine of consistent flavored quality. Fermentation temperature & the characteristics of the selected yeasts determine the amount & type of flavors produced. During spontaneous fermentation, a range of different yeasts grows at different stages of fermentation. A winemaker must carefully guide spontaneous fermentation to minimize the risk of spoilage by unwanted microorganisms. Control on temperatures during fermentation process is very much desired. Generally the temperature rises during the fermentation process. To control the temperature at the desired level, cooling plant is used which continuously sprinkles cold water on to the fermentation tanks so as to keep the temperature low. Usually the fermentation process should take place at 12-17 degree Celsius depending on the type of wine to be produced.
Chilling plant is of 2 types: one is water-chilling plant & the other is the glycol chilling plant. The glycol chilling plant is used to keep the temperature at as low as 15 degree Celsius. Thus with the help of chilling plants the temperature may be varied from -15 degree Celsius to +17 degree Celsius.
After completing of fermentation, wine is clarified and is then passed through heat exchanges & then into the reactors. The reactors are operated on the concept of centrifugal force wherein the solid particles, if any, in the wine are thrown out of the storage tanks for main wine & are separated out. The clear wine is then drained out into the storage tanks for ageing. The wine either stored in wooden casks or steel vats or in glass bottles. The stored wine is then passed to bottling & labeling machines.
BOTTLING & LABELING:
Bottles are to be selected very carefully keeping in mind the cost constraints & also the attractiveness. Generally bottle should be of green color. It is advisable to use different shapes of bottles for different varieties of wine. Bottles may be of different sizes depending upon the quality of wine to be marketed. Bottles should first be washed, made hygienic & then used for filling wine. Bottling machine includes bottle cleaner & wine filler. The bottle cleaner cleans the empty bottles with the help of water. The cleaned bottles are vacuumed & filled with wine. The bottle is then closed with a wooden cork. Wine bottles are always to be closed with special type of wooden corks. After sealing of the bottles they are taken to the labeling machine.
Packing of wine bottle with a world-class label that attracts consumer’s attention is crucial. The labels are to be got designed from graphic designers. The marginal increase in cost due to the use of world-
class labels can translate into a completely different upper class image for the wine.
The labeled bottles are then packed in the corrugated boxes. The corrugated boxes should also be of attractive colors.
QUALITY CONTROL AND RATING SYSTEM:
Wine Making
White wineWhite wines are harvested at the beginning of February when their natural acidity is still high. We prefer to harvest our Chenin Blanc around 22°B while our Sauvignon Blanc is brought in slightly riper at 24°B.
In our pursuit of quality and pure flavors we press our white grapes without destemming in a process known as whole-cluster pressing. This method takes much longer than first destemming, as fewer grapes can fit in the press. But it is well worth the effort as the clarity of the juice is preserved and no bitter flavors are transferred from the skin. After a day of cold settling the juice is carefully racked off the heavy lees and inoculated with premium French yeast cultures. Dimple jacketed tanks keep our white wines cool during fermentation.
White Wine fermentations proceed slowly as we keep the temperature very cold – under 15°C – to preserve the aromas and freshness of the fruit. Once the grape’s natural sugar has been transformed into alcohol, the fermentation is complete. While we let our Sauvignon Blanc ferment completely dry so there is no residual sugar, we stop the fermentation of the Chenin Blanc when there is still a touch of sweetness. Following fermentation the wines are again racked several more times to achieve a sparkling clarity.
The Sauvignon Blanc and Chenin Blanc are both bottled young, only four months after harvest. It is our goal to deliver the freshness of the fruit in the vineyard directly to your table.
Rosé WineRosé or “Pink Wine” is made from a blend of Cabernet Sauvignon and Shiraz fruit that is selected in a final pruning of the vines three weeks before the red harvest. This fruit is harvested with only 21°B of sugar, resulting in lower alcohol wine meant to capture the early summer flavors of fresh red berries and watermelon.
Once harvested the fruit is destemmed and transferred to tank where over the course of several hours color is extracted and a lovely pink cast is achieved. The grape are then gently pressed and transferred to tank for setting. From this point on the winemaking closely resembles that of white wine, a
cool fermentation is stopped just short of dryness preserving a little sweetness and the wine is then racked several times before bottling.
Red WineHarvest of red fruit begins in late February, when ripe mature flavors are achieved and the concentration of flavor is sufficient to make an intense wine of great depth. Typically the sugar will reach 24.5°B for the Cabernet and between 25 and 26°B for the Shiraz and Zinfandel.
The red clusters are hand picked into small picking baskets and carefully transported to the winery ensuring that each berry remains intact. Careful picking in the vineyard eliminates any damaged fruit. One by one each bin is dumped by hand into our destemmer while two sorters vigilantly pick over the fruit pulling out any stray leaves. The destemmed berries then fall, uncrushed, into a gentile passive-cavity pump that transports the fruit to tank.
After a two-day cold maceration at 10°C, the fruit is gently warmed and inoculated with carefully chosen strain of yeast. Pump-over are performed three times a day through a screen so that no berry is pumped. Pump-over cool the cap of skins and actively fermenting yeast cells that are carried to the top of the tank by the release of carbon dioxide. Once the fermentation is complete the tank is drained of the wine and the pommace is then carried by hand to the press where a very soft pressing releases additional wine without crushing the seeds and extracting harsh tannins. The wine is then
transferred to a 1/3 new mix of French and American oak barrels. Racking from barrel to barrel is performed every three months as the wine ages in barrel for a full year before being bottled.
Wine & Spirits' 100-point system is:
100 - 96 Superlative95 - 90 Exceptional89 - 80 Highly Recommended 79 - 70 Recommended
The Wine Spectator rating system is as follows:
100 - 95 Classic 94 - 90 Outstanding 89 - 80 Good to Very Good 79 - 70 Average 69 - 60 below Average 59 - 50 Poor
The Medals awarded by the American Wine Competition have the following meanings:
Platinum
96 - 100
Superlative
Gold 90 - 96
Exceptional
Silver 80 - 89
Highly Recommended
Bronze 70 - Recommended
79
A comparison of the rating systems shows the following equivalencies:
U.C. Davis
Robert M. Parker, Jr.
Wine Spectator
Wine & Spirits
American Wine
Competition
17-20 90-100 95-100 96-100 Platinum
17-20 85-89 90-95 90-95 Gold
13-16 80-84 80-89 80-89 Silver
9-12 70-74 70-79 70-79 Bronze
5-8 na 60-69 na na
0-4 50-69 50-59 na na
There are varieties of scoring systems, which are used for rating wines. Various numbers of points are assigned to specific qualities and characteristics found in wine. In UC Davis 20 point system the point are given for the following categories:
Acidity (2) color (2) Aroma & Banquet (4) Volatile Acidity (2) Total Acidity (2) Sugar (1) Body (1) Flavor (1) Astringency (1) and General quality (2) In the UC Davis scores have the following meanings:
17-20 Wines of outstanding characteristics on defect13-16 Standard wine with neither outstanding character nor defect09-12 Wines of commercial acceptability but with noticeable defect05-08 Wines below commercial acceptability01-04 Complete spoiled wines
Another 100 points system used by various American organizations devised by renowned wine critic Robert M Parker, junior. Robert M Parker, junior’s 100 points rating system provides the following.
100-90 Outstanding or excellent wines89-85 Very good to excellent wines84-80 Very good wines79-75 Pleasant wines but lack complexity, character
or depth74-70 Average wines69-50 Poor, unbalanced, flawed, dull wines.
The company proposes to follow the UC Davis 20 point system for grading & quality control purposes.
FINANCIAL & ECONOMIC ASPECTS OF THE PROJECT
GENERAL BASIS OF ESTIMATES:
The financial planning has been made in such manner so as to adequately meet the requirements of funds at any point of time for the projected
production and sales, from the various sources of funds together. Working capital requirements have been assessed based on the capacity utilization and the production targets fixed for the year. The proposed capacity utilization is starting from 50% to 75% year.The promoters have availed the services of world famous technical consultant and reputed process consultants for successful implementation of the project. They also proposed to install the most modern, versatile and sophisticated plant & machinery & hence the proposed capacity will be easily achieved.
CAPITAL INVESTMENTS:
Total capital investment required for the proposed project has been worked out at Rs.195.5 lacs. The break-up of the capital investment under different heads of capital cost is given in Fixed Assets Schedule.
WORKING CAPITAL REQUIREMENTS:
Working capital requirements estimated here are for the first year production level. The costs of input raw materials are worked after detailed study of the consumption data, percentage of wastage & as per expert technical opinion of the technical and process consultants. While estimating the cost, total of input raw materials provision has also been made to cover
costs of marginal wastage of materials. The estimates have been based on the current prevailing market prices of raw materials.
Based on cost calculations arrived at as per methodology adopted, requirement of working capital for the first years projected working has been narrated in the project report.
CAPITAL COST OF THE PROJECT:
The capital cost of the project including margin money for the first year’s operations has been estimated at Rs.195.5 lacs. Estimates of margin money requirements have been estimated at standard level which could be acceptable at financial institutes / banks extending finance towards working capital. The break-up of capital investments & margin money for working capital is as follows:
SOURCES OF FUNDS:
While evaluating the various sources of funds to meet the required investments, the eligible financial assistance from financial institutions / banks as per their policy norms has been considered.The capital cost of the project is Rs.195.5lacs and the proposed to be financed by way of term loan from bank amounting to Rs.94.50lacs. The promoters will contribute the balance amount of Rs.45.00lacs. The ratio of own funds to borrowed funds works out nearly to 2.1. It can be observed that the financial plan of the unit has taken into account all the
requirement of funds from capital investment and working capital requirements.
EQUITY / NETWORTH POSITION:
The equity / net worth and the total borrowing are expected to be different points of time.The same are tabulated in the financial projection.
DEBT SERVING CAPACITY:
The debt serving capacity of the unit is measured by ratio of repayment obligation to net cash accruals and is worked out based on projections of working results and repayment program envisaged. The working of the same is given in the financial projection. It can be seen from the figures from the financial projection that there is sufficient cushioning between repayment obligation & the net cash accruals & as such even if certain marginal set back occur in the operation & the unit is able to achieve only 75% of the performance target envisaged, still it will be to meet its repayment obligations.
PROFITABILITY:
The profitability in the operation of the unit has been worked out on generally accepted assumptions in such type of industry. Considering the nature of the industry and the product manufactured this ratio is absolutely reasonable.
BORROWING AND REPAYMENTS:
The total borrowings of the unit for acquisition of capital assets would be Rs.94.50 lacs, which be obtained from bank as a term loan.
Repayment against long term will commence from 2009 details of repayment schedule and interests are given in the financial projection.
CASH FLOW POSITION:
Cash flow position of the project during the first six-year or projected operation is given in schedule of the project report. While preparing the cash flow it is assumed that all the payments pertaining to interest on Term Loan and Working Capital loan, repayment installment for a year are made in said year itself. Amount of taxes are also consider and to be taken care as per rules under Income Tax Act.The cash flow statement indicates adequate level of liquidity for the unit.
PROJECTED BALANCE SHEET:
Projected Balance Sheet of the unit for the first six years have been drawn up and given in Schedule of project report. As there is no increase in the capital and other fixed assets of the unit first six years of projected working, the entire increase in assets is
contributed by current assets consisting of inventories, receivables, cash and bank balances. On the other side, the increase is due to ploughed back profit and accumulated reserves.
MARKETING:
The company plans to manufacture a wide variety of wines and concentrated drinks. The product range, which the company proposes to offer, has growth potential in the long run.The Wine making industry can be one of the most lucrative business opportunities. It’s rich taste and the great flavor has a big market, which is always greet the finest and wine are not an exception. The art of making wine can be mastered with constant efforts and use of the latest available technology and marketing strategies.Owing to liberalization policy of the government of India, the doors for all types of industries have been opened. The nature of market has also been undergone substantial change i.e. the market to buyers. This has created competition, quality awareness amongst all the industries.The wine industry is not an exception to this phenomenon and thus, the future of wine making is very bright in India.
PRESENT STATUS OF WINE MARKET IN INDIA:
The details of sales of Indian made grape wine (including export sale for last five years are as follows:
MARKET POTENTIAL:
The potential for the wine can be gauged from the following table:
TOTAL WINE SALES IN KARNATAKA
Year Source of supply
Quantity Value In lakh liters
(In CBs)(Rs. In lakhs)
2003-04 55098
1180.94
4.9
2004-05 107465
9.6
2006-07 Foreign 9281
909.09
0.8
Imported (Within the country)
37411
1087.85
3.4
Local (Within the state)
103285
1225.76
8.9
Total 149977
3222.70
13.1
2007-08(till Jan08)
Foreign11636
1081.94
1.0
Imported (Within the country)
37094
1156.84
3.3
Local (Within the state)
105387
1325.63
9.1
Total 154117
3564.14
13.4
Per capita consumption of wine:
If the per capita consumption of India in converted in simple terms it is equivalent to half of the tablespoon. Assuming the per capita consumption in India goes to meager one liter, the market size would be a mammoth one billion liters, offering a tremendous opportunity to a manufacturing unit.
GENERAL OVERVIEW:
Though the market share of wine among the alcoholic beverages is surely but steadily increasing, still it is at a very primary stage. The challenge before the winemakers in India is to develop the domestic market, as a majority of the Indian consumer prefers beer, whisky, and rum and sometimes even home brewed spirits over champagne and wine.
The statistics on the Indian Made Foreign Liquor (IMFL) shows that the consumption of wine in India is not more then 2% of the entire IMFL consumption.
The international market is a promising arena for the Indian wine. The Indian wine industry though as its infancy stage, is hoping to challenge the supremacy if wine countries in an effort to gain a foothold in the international market.
Though they get most of their technology and advice from Europe, Indian winemakers are now promoting themselves in a big way to catch the attention of the rest world. The favorable climatic conditions and superior quality of Indian grapes would provide an added advantage to attain this objective.
MARKETING STRATEGY:
PHASE – 1: Creating awareness:
Background
It is imperative to create awareness about wine among the Indian consumers, primarily to shift their preferences from other alcoholic drinks.
The liberalization policy has given an entry to renowned foreign wine brands to the Indian market. The availability of the foreign brands is increasing as one can pick up the brand of his choice from the neighborhood wine store.
Wine can be relatively light on the pocket (there are a whole range of wines to choose from, starting at Rs.280 per 750ml. bottle and fashionable. The components in wine have shown good health effects on wine drinkers. Recent studies have shown that wine potentially prevents or delay the onset of cancer, eliminate bacteria that cause stomach poisoning.
Creating brand awareness:
The target segment for the product has to be affluent and the neo rich consumers.
a. The first approach that would be taken up by the company is to have brand name displayed and propagated prominently through the appropriate media, particularly word of mouth, private social gatherings, affluent circle etc.
b. Articles regarding ‘art of drinking wine’ and other related articles like non-vegetarian food with wine and partying aspects can be brought out. This activity should be brought out with the help from eminent cookery experts. This move will help us gather attention due to their mass appeal.
c. Platform such as femina. Health and other government magazines dealing with food and beverages may be used to publish the articles.
d. Assuming that the first batch of aged wine of the company will be ready by November 2009, the activities of creating brand awareness should be intensified from the December end or beginning of January.
Creating retailer, dealer, push for the brand:
a. It is essential to create a strong push strategy aimed and retail for the brand. The channel
member is going to play the most crucial role in promoting the product in the market place.
b. The beginning can be made with the channel members imparted with the knowledge about the wines in general as the types of wine of grapes used, manufacturing process employed and also the health aspect related to wines. This would be an aspect in the relationship building exercise.
c. The meeting with the retailers would provide an opportunity to obtain key inputs in understanding the preference and psyche of the target consumer within the target market towns.
d. The retailers could be taken for a guided tour to the vineyards during grape crushing festival and/ or to see the entire process as well as the establishment.
PHASE – 2: Product Placement and Brand Positioning
Now that the major exercise of creating awareness among the target consumers and channel members has been achieved, now is the time to introduce the wine(s) in the market. Intense promotional campaign at premium places & the spots should be conducted
in an organized and planned manner to promote the product and for this we will organize and articulate high-class events.
1. Up markets Bars and clubs: The Company has opened dialogues with the leading clubs and bars in major towns of Karnataka. Though the discussions are at very initial stages, the segment has responded very positively to the company’s products.
2. Pubs are the place where anything new is always welcomed & patronized. Up market pubs are one of the most important places where wine is sought after. The company is going to introduce its some of the leading pubs all over Karnataka.
a. Business & Recreation Clubs : These are the places where wine is consumed on selective basis. Generally it is as those clubs where one can find the real connoisseur of wine. They are the people who are fond of drinking different types of wine and make their own judgment of wine.
b. Premium Category Caterers : Caterers will be an important segment to market the company’s wine as these serves the needs at any events and ceremonies among the elite society. The prompter are tapping these segments too.
c. Event Managers : This is a new area of recent times, tendering professional services for
organizing mega activity event, which will be of immense help to promote the products. The specialized agency arranging corporate luncheons, dinners, meeting, Rotary Conventions, Film Personality get together, Cocktail reception etc will be targeted to market the product.
3. The activities can be organized through creating a sound battery of sales personnel for each district to develop & strengthen the contacts and also to have timely liaison.
FUTURE PLANS TO CREATE BRAND:
Retail stores:Company will setup retail wine stores across the cities to facilitate and improve the sales of wine and wine accessories. Company will set up 2-3 stores during 2009-2010. These stores will provide services like free home delivery, cash & carry, easy payment option and informing customers about our various wines.
Internet:Company will launch its website to provide information on our product mix and other initiatives and promotional activities taken by company to promote wine like wine fest, wine tourisms, wine & dine etc. Our website will allow people to purchase wine online or place an order for sales. Website will act as an enquiry counter for an outsider who is seeking information about wine and our company.
Wine tourism:Company will provide facility to visit our winery. People who are interested in knowing about wine will get chance to watch it closely. Company will make arrangement for their stay and food at a nominal rate. This facility will give people an extra edge to learn about wine and its process.
Diversification in product mix:Company R&D team will make sure that they will come up with new and improved wines to enhance our product basket. We will launch varieties of wines in coming years with better quality and taste that will enhance the pleasure of our customers.
PROMOTIONAL MEASURES:
Packaging:Packaging the bottle in shape, color and the tables with an attractive styling should catch the consumer’s attention i.e., in formation tags around the neck, special gift pack with colorful ribbon etc. This aspect is going to play a very crucial role in establishing the brand in market place.The company also intends to introduce certain concepts for the first time in Indian market i.e., Distinctive Logo, Vintage Dating, Varietals labeling, use of Flint bottles etc.
Media:
A press release is essential at the same time where the wine(s) are going to be distributed as free samples. The press can also be given tasters and also wine tasters can be invited for this press release. The press may also be actively involved in the educating process by having a similar guided tour for them as suggested for the retailers.
COMPANY PROFILE
Name : - Enoss Equipments Private Limited.
Status : - Small Scale Industry.
Constitution : - Private Limited Company.
Year of Establishment : - January 2006
Factory Location Plot No F-137, MIDC, Ambad, Nasik.
Ph. No. 0253 - 2380769 Fax No. 0253 - 2384981
Registered office : - Plot No. F 137, MIDC, Ambad, Nashik 422010
Website: - www.enoss.in
DIRECTORS : - 1. Mr. Sudhakar R. Choudhary 2. Mr. Sanjay V. Jha
Technology Partners : - BEV-TECH CONSULTING, Via Pieve, 18, 31040 Giavera Del Montello TREVISO-Italy
E-mail – morspe@tiscali.
Nature of Business
(CORE BUSINESS) ▪ Turn Key Projects of Winery (ONE STOP SOLUTION).
▪ Manufacturers of Winery equipments and Providing technical, managerial services for wineries, Consultancy for wineries,
▪ Import –Export of Winery equipments, chemicals, hardware’s & wine, Pharmaceutical chemical Vessels, Reactors, Distillery Vessels.
Providing complete solution from Vineyard to bottle for wineries.
Technical Know how : - Indigenous and Collaboration with BEV - TECHConsulting, Italy; Spadoni S.r.L Italy, Unitech Italy, Letina, Croacia; GB Project Italy; BorrelliGroup Italy, AEB – Spindal, France; PULEO Italy; TECME Italy. OENO – France.
Employment : - Mechanical Engineer –Design.Material Manager.Purchase OfficerAccountant.Steno TypistPublic Relation Officer Shop floor SupervisorsSite Engineers – Electrical/Mechanical Site Supervisor / Chilling Plant OperatorContractors.
Infrastructure : - 1. Manufacturing Area Built up 600 sq.m. Plot Area 3280sq.m.equipped with advanced Tools & tackle 2. Well-equipped office with independent design
Facility, conference hall, commercial Department, 3. Advanced Imported TIG Welding Machines & Fabrication facility to execute heavy Jobs &
Other equipment manufacturing.
Central Excise Registration: - Not yet Registered.
Sales Tax Registration : - VAT TIN NO: 27150559022V w.e.f. 05-09-06 CST TIN NO: 27150559022C w.e.f. 05-09-06
Quality System : - ISO-9001-2000 JAS-ANZ (In Process)
Bankers : - Centurion Bank of Punjab Ltd.
Sharanpur Road, Near Rajiv Gandhi BhavanNasik – 3.
DIRECTORS’ BACK GROUND
1. Sudhakar Choudhry
Age : - 43 yearsAcademic Qualification : - Mechanical Engineer
Experience & Background:-Experience of 20 years in the food processing & continuous process industries Out of which 10 year in Beer and Wine industry.
Providing consultancy in relation to the wine industry since last 2 years. Provided consultancy to the turn key wine project i.e. from conceptualization to commissioning & wine producing & marketing it.
Worked with UNITED BREWERIES (U.B. Group) leading Beer and liquor manufacturer, as Project Engineer for 5 years.
Worked with NDDB (National Dairy Development Board) as Mechanical Engineer for 5 years and was looking after Refrigeration system & Milk Processing Plants.
Worked with SAMANT SOMA WINES LTD. as winery Engineer & established sparkling wine process methods.
Worked with RELIANCE INDUSTRIES LTD. as General Manager- Engineering Services for 2 years.
Involved in all the activities of winery policy movement since 2001 & well conversant with the wine policy of Maharashtra State.
Fully conversant with Winery Equipments (Indigenous & Imported); Grape Processing & Fermentation Techniques, Winery Equipment selection, Bottling & sanitization Procedures.
Well conversant with Marketing policies & Strategic Policies for grape Wine Marketing.
Additionally worked with ‘Event Management” for wine festival organizing to launch different types of wines in different Area of country.
Chief promoter of sister concern ssr wine engineers & consultants Pvt. Ltd. Established Company in September 2003 and Executed prestigious projects of winery.
2. Sanjay Jha
Age : - 33 years
Academic Qualification : - Mechanical Engineer.
Experience & Background:-Experience of 10 years in design, development and manufacturing of process equipments, Food Industry equipments, Pharma equipments, Chemical Industry related Machines & Equipments.
Work experience: with Dalal Consultants & Engineers Ltd.
1. Preparing of Mechanical Data Sheets from process Data sheets, preparing and checking of Design Calculations Inducting major fabricated equipments and site fabricated tenders.
2. Technically evaluating offers, checking of sub-contractors drawings, participating in design review meetings with customers.
3. Providing technical assistance to procurement, inspections and other department’s trouble shooting problem at site.
Project Handled :1. L & T – DHDS : Mathura Refineries.2. IOTL : Tank Terminal at Navghar 3. IOTL : (JAIS)4. Zuari Indian Oiltanking Ltd. Petroleum Storage Tanks at proposed petroleum Terminal,
Zuarinagar, Naslo, and GOA. 5. Petron – Gujrat Refineries 6. HOCL – Tank Farm7. NIKO Resources Ltd.8. Parekh Laboratories Bulk Drug.9. SHV Energy North West India Ltd. Bottling Plant.10. HLL – Instant Dry Yeast & Block Yeast.11. HPCL – NPCB Projects.12. HEG Ltd. Expansion of Graphite plot and 132/33 KV. Switch Yard.13. Cadbury India Ltd.- Malanpur Phase –III Expansion 14. Cadbury India Ltd. Induri Project 15. Wyeth LRDERLE Limited.
Work Experience: With Gansons Ltd.
1. Preparation of sketch for fabrication detail Drawing of pressure vessel, heat exchanger, column, reactor, agitator, storage tanks, and rectangular tanks.
2. Preparation of standardization for spiral ladder, cage ladder, Insulation supports etc.
3. Developing design calculation programs in Microsoft excel for various parts like leg support, skirt supports etc.
4. Preparation of design calculation for pressure vessel, heat exchanger etc. in software (code calc, expansion) as well as manual.
5. Preparation of plates cutting diagram for maximum work & weight calculation for various equipments.
6. Preparation of meteorological data. Worked with quality control department and planning department.
7. Work with marketing department helping them in estimation of fabrication equipments.8. Work under all consultants and third party Inspection agency like.
9. EIL Engineers India Ltd.a. JACOBS HUMPHREYS & GLASGOW Consultants & Engineers ltd.b. Chemtex Engineering of India Ltd.c. Dalal Consultants & Engineers Ltd.d. Eraerner Power Gase. UHDE India Ltd.f. LLYODS REGISTER OF SHIPPING (LRIS) g. Chief Controller off Explosives (CCOE)h. Indian Boiler Regulations (I.B.R) i. PDIL
Provided Design Consultancy to the Winery Equipment manufactures in Nashik for one & half year, for Designing of Fermentation vessels and other equipments.
Chief promoter of sister concern ssr wine engineers & consultants Pvt. Ltd. Established Company in September 2003 and Executed prestigious projects of winery.
3. Raajeev S. Deshpande
Age : 42 Years.
Academic Qualification : B.E. (Mech.) From Karnataka University, Dharwad.
Experience & Background : Total Experience of 18 years in non-ferrous & engineering industries in Production & Marketing of products, catering to the needs of electrical, Mechanical, Chemical Heavy equipment, Automobiles Industries etc.
Worked for ‘TECHNIQUE’ Baroda for 6 months. As a production engineer.
Worked for ‘MICO’ Nashik, as a Planning Engineer in Plant Engineering Dept. for 1 year.
Geared up with ‘ASIA AUTOMOTIVE LTD.’ Nashik, who deals with production and supply of non ferrous resistance welding electrodes having facilities for casting and forging, and worked as a ‘Production Supervisor’ for 1 year and then the services were hired by the ‘ Marketing Dept.’ where, worked as ‘Marketing Engineer’ for 5 years. As an Engineer, in Marketing looked after the customer service, order booking and new developmental items like welding guns. Catering to the needs of the customers in western, eastern & southern zones.
Worked for ‘RASWELD’ Sinnar, Nashik, a resistance welding electrode manufacturing company and worked for 6 months in Sales Dept.
Joined ‘INDIAN TOOLS MANUFACTURES’, Nasik, being the part of a corporate sector, who is a pioneer in HSS cutting tools manufacturing.
Worked in their ‘Marketing Dept.’ as an in - charge of the Marketing section, controlling order-processing, monitoring the timely production to insure the highest quality products, customer care, after sales services and also as a chief-facilitator to the zonal office and branches spreading all over India, catering customer needs specially in public & private sectors dealing directly with the plants. Made the strategic and budgetary plans according to the needs of the market, which increased the Market share of the company.
Worked as a team to develop a fully integrated marketing program focused on advertising, public relations and promotions to deliver a clear and positive message on the quality.
Part of the team of the developmental program to implement an aggressive and comprehensive Marketing plan targeted at various electrical, mechanical, heavy equipment manufacturers and chemical plants of India and abroad.
Encouraged the increase in retail and the full margin sales through the establishment and expansion of self controlled off site sales locations other than the own sales offices.
Working experience 8 years.
Worked as “WINERY CONSULTANT” for 4 years ( 2000 to 2004)
Providing complete solution for the new Wineries in Maharashtra, Karnataka and other states, such as,
Selection of Site Selection of Equipments Plant Lay – out Customer Care Post supply services
