The oenophile in action

Sanjay Menon, importer of fine wines from overseas all this while, has finally rolled up his sleeves and trousers to make and market his own wine for a change.

It's about time, thinks Sanjay Menon. About time he got his feet dirty. After eight years of importing wines for the Indian market, his firm Sansula is ready to jump in and start crushing its own grapes "" for its own labels.

The oenophile that Menon is, he can never stop talking about the finer aspects of wine. But these days, it's more walk than talk. He's busy scouting for land in Maharashtra for a winery.

Wine famously takes its own sweet time maturing, and with the Indian market the way it is "" insatiable "" every day lost is opportunity gone. Even with such hectic efforts, the first batch of produce is at least two years away.

"For many years," says Menon, "it was the imported wines on restaurant lists that drove the market, but exponential growth now will be driven by domestic wines. Besides, the exorbitant import duties (between 150 and 250 per cent) coupled with state levies and sales tax, make a $2 bottle of plonk an inaccessible $20 wine."

That domestic wine is more price competitive than imported wine goes without saying. Thanks to savvy branding efforts and stiff quality control, however, the locally bottled stuff is also turning competitive in the appreciation stakes.

The domestic market, placed at 4,00,000 cases annually, is currently a little under four times the size by volume of the imported wine market.

It helps, too, that the Maharashtra government has liberalised its policy on wine production in the state in the last four years; new wineries today are exempt from excise for the first five years and existing wineries fork out just 25 per cent. Over 50 licenses have been issued to potential producers in Maharashtra.

But, asks Menon, "How many of them are passionately engaged in viticulture and vinification?" Many of them are just trying to clone vineyards in Europe with little thought to Indian climactic conditions.

Menon, however, vows to experiment with lesser known varietals like Grenache, Primitivo and Negroamaro "" more likely to work here.

On pricing, Menon is clear that there's much leeway available, and assorted tacks could be used. But operating at the upper end makes most sense. "I won't risk my reputation... it will be top quality stuff."

But that's two years away. For now, Sansula is experimenting with other domestic wines. Next week, Menon hopes to launch Bahula, a domestic wine from another grape grower (production capacity: 15,000 cases) that Sansula has undertaken to brand and market "" in a Rs 350-450 price range.

"We've already exploited the retail channels and have developed logistical and operational efficiency, so this makes sense," says Menon.

What, though, does Menon think is needed to take on India's big three "" Chateau Indage, Sula and Grovers? His answer: "Marketing gimmicks will only take you so far." The Indian consumer is getting discerning, and fast.