India Wine Industry Report Essay

CONTENTS Introduction commercialize Size Market growing topical anesthetic Industry Duties and evaluatees Australian drink players in India Market Segment and Market Sh ar for merchandise drink-coloured-coloureds Duties and legal injury Structure wine-colored responsibility unhurriedness refer on sell price Pricing factors The Developing commercialize Market portal Strategy Further Information Annexure I stage of India Annexure II useable Information Annexure III study Wine Importers in India Annexure IV list of separate booze Importers and Distributors in Mumbai Delhi Bangalore and Goa Annexure V coerce Clipping PAGE NO 3 3 3 -4 4 5 5 5-6 6 7 8 8 8-9 9 11 12 13-16 17-19 20 -21.Disclaimer Whilst every cargon has been taken in compiling the information in this report, the Department of State Development and its contractors neither warrant nor represent that the material published herein is faultless or go off from errors or omissions. To the extent p ermissible by constabulary the Department of State Development and its contractors shall not be responsible or li open for either errors, omissions and misrepresentations make herein. 2 Introduction The Indian vino grocery is in a nascent stage. Estimates suggest an enormous harvest-tide potence of this sector some(prenominal) from the indigenous wine making effort and imports.The wine market in India is mainly fuelled by the strong harvesting in the domestic wine production, but import wine plays a role in creating aw areness and increased demand. Like most products in India, wine is exceedingly price sensitive. Market Size As an emergent market India has great potential for wines, with an annual growth rate of 30% albeit from a broken plant. However, per capita consumption of wine in India is still low compared with other Asian markets. It was estimated that during the financial year 2008/9 the everywhereall surface of the Indian wine market was round 1. 2 milli on cases, of which 210,000 cases comprised import product.This is diminished when compared with other deglutition products. For usage, there are an estimated 210 million cases of hard drink consumed each year, of which 100 million are cases of beer. The fortunes of the industry are united to the changing drinking habits of Indians with high disposable incomes, unlike tourists and visiting logical argument people, and regime (Central and State) regulations and policies that g all overn the industry. Market Development Use of the mass media to grow wet beverages in the form of advertising in magazines, TV, radio, newspapers, or on street hoardings is not allowed in India.However in-store advertising or on- put in promotions are allowed in all states except Delhi. In should be pointed out that wine shops differ widely from those in Australia. Marketing strategies fork up to include other forms of promotion such as promoting awareness on the relative health benefits of drin king wine, and sponsoring separate events which are cost effective and targeted towards those socioeconomic groups that tail afford wine. The market demands a lot in terms of creating awareness, program line and demystifying wine as a product.This dirty dog help expand the consumer base and increase demand. Companies wanting to success unspoiledy access the Indian wine market contract to assume a long-term system that includes developing appropriate marketing promotions and educating promoters, distributers and consumers about the product and the gull. Ongoing support of agents and distributors is required both(prenominal) on a financial basis (e. g. supporting promotions and marketing activities) and on a personal level. Increasing awareness of wine as a separate drink other than spirits has made it more socially acceptable.Increasing health consciousness and higher spending on unified and personal entertainment has overly given a boost to the sector. The increase awar eness of Government authorities to encourage wine drinking as compared with spirits has certainly brought cheer to the companies in the sector. The perception of wine universe upmarket and sophisticated is helping in bringing about this change. nonpareil sign of this happening is the emergence of wine clubs in a turning of cities. The biggest consumption of wine (up to 80%) is confined to the major(ip) cities, of which the largest are Mumbai (39%), Delhi (23%), Bangalore (9%) and the foreign tourist.3 dominated market of Goa (9%). With the easing of quantitative restrictions on wines by and by April 1, 2001, there has been an change magnitude amuse in the Indian market by international players. However the import duties and state levyes (which will be discussed by and by in more detail) remain high. They come to to be a major impediment to the foreign entrants into the Indian market. Local Industry Maharashtra, Karnataka and Himachal Pradesh (a recent entrant) are the three major wine producing regions in India.Maharashtra, on the western bound of India, is the major wine-producing region, accounting for 94% of the total wine produced in the country. fit to the Department of Wine Production of the Maharashtra Industrial Development Corporation (MIDC), the wine producing region is spread over 30,000 hectares, covering 64 wineries. During the year 2007/08 Maharashtra registered a massive growth in wine production to 21. 1 million litres against 13. 2 million litres in 2006/07. This was a growth of 60% over the previous year and illustrates the ongoing appreciation of the virtues of wine by Indian consumers.Six new wineries became operational in Maharashtra, taking the total investment funds in the state to A$89 Million producing 720,000 litres of wine. The major grapeshot producing regions in Maharashtra are Nasik, Satara, Sangli, Ahmednagar, Pune and Osmanabad, which are located approx 180-300 kms northeast and south of Mumbai. xxx wineries make b elieve established production and bottling plants in the Vinchur industrial estate rough Nasik. Karnataka produced 1. 2 million litres of wine during the same period. Two of Indias spark advance brands, Grover Vineyards and Indage, nonplus plans to set up wine production facilities in Himachal Pradesh. in that location are three major local anesthetic producers who control more than 90% of the market. Their market shares are as follows Domestic Players Grovers Vineyard Chateau Indage Sula Vineyards 2004-05 37% 49 % 14 % 2005-06 26% 38% 36% 2006-07 24% 36% 34% 2007-08 22% 35% 35% Some of the statistics of domestic and imported wine barters in India are as follows 2003-04 2004 -05 2005 -06 Domestic 430,000 490,000 535,000 merchandise 40,000 70,000 100,000 integral Cases 470,000 580,000 635,000 (Figures sourced from Wine Report by MIDC) 2006-07 940,000 140,000 1,080,000 2007-08 1,000,000 210,000 1,210,000.During the last year linked Sprits Ltd (USL), part of UB Group, bought Bou vetLadubay, a French winery, and has launched this brand on the Mumbai, Delhi, Bangalore, and Goa markets . USL intends to produce wine in India. Their plans are to produce up to 600,000 cases per year. India has similarly exported a small majority of wine to Canada, Singapore, UK, and USA. 4 Duties and Taxes The import duty on pile wine was zero from 2001 till 2003/04. In the year 2004/05 the duty for wine imported in loudness 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 continuing feasible. The major wine imports turn out been from France, Italy, Australia and Spain. There is a growing interest in wines from Austria, Italy, South Africa, Argentina, freshly Zealand and Chile. According to International Wine & olfaction Research (IWSR), 39% of the to tal wines imported into India have come from France, 24% from Italy, and the rest from the other countries listed.Australian Wine players in India Some Australian wine companies that have entered the Indian market during the last 7 days include Howling Wolves of westerly Australia, who have been marketing wine in Mumbai since 2004. The former Premier of Western Australia, Dr Geoffrey Gallop, launched their wine in Bangalore in October 2005. smith Brooke of Margaret River, Grant Durge, St. Hallett and Thomas Mitchell of South Australia, and Pikes, Victor Precie and Stonier of Victoria have trussed up with Echidna Wine Traders to market their wines in India. Xanadu and Cape Mentelle from Western Australia are also being marketed in India by picturesque Wines & to a greater extent and Moet Hennessey.BRL Hardy has a distribution arrangement with Sula Vineyards of Nasik. Additionally considerably known Australia brands such as Oxford Landing, Yellow Tail, Jacobs Creek, and Tyrell a re readily getable in India. Market Segment and Market Share for Imported Wines In India, there are two major market segments done which imported wines are sold. These are the cordial reception sector the retail sector The hospitality sector consists of 4 and 5 lede hotels and upmarket restaurants and shortly accounts for up to 63% of sales for imported wines.The hotels normally buy wine from importers and distributors as distant to importing the wines directly from producers due to the logistics and economies of scale. The retail sector accounts for 30% of sales of imported wines. Currently there are ten Indian states that allow the sale of imported wines through retail stores. These are Punjab, Haryana, Chandigarh, Karnataka, Maharashtra, Goa, Uttar Pradesh, Madhya Pradesh, Jharkhand, Himachal Pradesh. The summation territories of Pondicherry and saucily Delhi also allow the sale of imported wines through retail stores.The sellers are granted a permit and license according to the insurance policy of the respective state. In the 5 states other than those mentioned above, the sale of imported hard drink (including wine) through retail outlets is not permitted. However 4 and 5 jumper lead hotels in these states are allowed to buy bottled wine against a duty free license. The states of Tamil Nadu and Andhra Pradesh do not allow the sale of imported wines, bit the state of Gujarat prohibits sale of any wine or liquor through retail outlets.Import duty, local evaluatees and Price Structure The Central Government levies import duty, in addition to which each State Government hike cut back their own taxes on imported wine. The taxes levied vary from state to state. They are complex and keep changing on a fairly systematic basis. Because of the complex tax twist and permit regulations it is very hard for a distributor in one state to sell the product to buyers in other state. Hotels and restaurants, under the duty free scheme (a certain section of t heir foreign exchange earnings can be used to first-class honours degree import duty on imported goods, including wine) are at an advantage. However, the volume imported under this arrangement is still small.It is to be noted that 75% of the imported wines are sold in 4 and 5 star hotels. Each state has different levels of taxation as vigorous(p) as varying labelling requirements, types of labels, gifts for registering labels, etceterawhich need to be adhered to. Wine exporting countries, including Australia, have, through their gritty Commissions and Embassies in India, been making representations to the Indian Government with the support of local producers to contour the taxation structure and labelling requirements.This has been a slow process and scant near has been made. Duties and taxes are the major impediment to the growth of the wine market in India. The following examples illustrate the complexity of the problem. In Delhi the tax/duty on wine is at a uniform rate o f Rs200 (A$5. 50) per litre from January 2008. In Karnataka state (Bangalore) the current tax is Rs630 (A$19) per case of 9 litres. In Andhra Pradesh (Hyderabad) the tax on wine is based on the alcohol content as well as on volume. The effective rate of duty joins to Rs90 (A$2. 80) per litre. infra the WTO agreement and pressure from the US and EU countries, the Government of India denote the reduction in elementary duty from 150% to 100% effective 3 July 2007. However the states increased the excise duty, which not only impacted the determine level in retail sales but also made it extremely tough for imported wine to enter the market. Industry associations have taken up this matter with the Government and changes are expected in the near future. The following table is an example of the reckoning of wine duties and obligations as aerated by the Federal Government and that by the State of Maharashtra and Mumbai.It also shows the impact of such duties on retail pricing, which i s marginal in outrage of the reduction in the basic import duty tariff. Maharashtra, the largest producer and consumer of wine, has been increasing taxes on imported wine in coiffe to protect the local industry. 6 There is also significant change in duties on liquor and wine in the state of Goa and Karnataka. Please see Annexure VI for further details. 7 Current wine duty calculation that impact on retail prices Duty Paid Scheme commemorate Brand Brand 1 2 3 24 35 45 Duty Free Scheme Brand Brand 2 1 24 35 CIF in US$/case * Eqvt in INR 1$=40 Add Landing tip off 1% (AV) Basic Duty 150% Sub Total CVD 4% Total Landed Maharashtra strike 200% of AV Sub Total Octroi 7. 2% Total vernacular permissiveness Ex warehouse Sale Price Wholesale Margin 12% Wh Selling Rate Retail Margin 12% Consumer Price Consumer Price /Bottle VAT Total Total Taxes Taxes as % of CIF CIF in US $ Brand 3 45 960 969. 6 1400 1414 1800 1818 Eqvt INR Add In Bond Transfer Fee 2% Add Landing Fee 1% AV 960 979. 2 140 0 1428 1800 1836 1454. 4 2121 2727 988. 992 1442. 28 1977. 98 2884. 56 320. 41 467. 27 2000 2000 5258. 4 6751. 83 1854. 36 3708. 72 600. 77 2000 8109. 49 2414. 4 3521 4527 Excise Duty 96.58 140. 84 181. 08 Octroi 2510. 98 3661. 84 4708. 08 Gross Margin 1939. 2 2828 3636 Ex Warehouse 4450. 18 320. 41 4770. 59 2000 6489. 84 467. 27 6957. 11 2000 8344. 08 600. 77 8944. 85 2000 Wholesale Margin Ex Wholesale Price /Bottle Total Taxes 631. 008 5889. 4 490. 784 2298. 4 239% 810. 2194 7562. 05 630. 1707 3351. 83 239% 973. 139 9082. 63 756. 886 4309. 49 239% 6770. 59 8957. 11 10944. 9 Taxes as % of CIF 812. 47 1074. 85 1313. 38 12258. 2 7583. 06 10032 909. 97 1203. 84 1470. 99 8493. 03 11235. 8 13729. 2 707. 75 141. 55 849. 3 3810. 59 397% 936. 32 187. 26 1123. 58 5557. 11 397% 1144. 1 228.82 1372. 92 7144. 85 397% Please note the above is a take only. Taxes and duties are subject to change without notice. Exporters must check the duties and tariffs before net any sale/contract. 8 Pricing Factors Going by the calculation shown in the table above, the retail price for wines goes as high as 500% of the CIF value for bottled wine. It is still higher in most 4 and 5 star hotels and upmarket restaurants due to the higher margins they are able to obtain. In Indian hotels and restaurants imported wine is sold upwards of Rs2200 (A$60) per bottle, with agiotage wines sold at higher prices.Up to 70% of imported wines are sold through retail outlets at Rs1200 (A$35) upwards per bottle. There is also a one off label registration fee that has to be paid in each State the wine is to be sold. The fee is calculated on the maximum retail price and varies from State to State. For example in Goa the label registration fee for a bottle of wine that retails for between Rs. 2000-5000 is currently Rs45,000. The Developing Market According to the Exim Bank flock it is conservatively estimated that 10 million Indians (around 1% of the population) could be termed as potential consumers of i mported wines.They would come from the upper/middle class socio-economic groups. The profile of wine drinkers has changed in the past five years. This is due to the fact that many Indians have travelled overseas and have been exposed to a variety of wines. They have started regarding wine as a beverage with health benefits rather than as an alcoholic beverage. Women, too, are increasingly choosing wine as a beverage of choice as it has a certain sophistication attached to it. Wine is also being used more special promotions, product launches etc.Despite repugns such as high duties, complex state taxes and laws, and sad infrastructure and logistics, the market is growing at a healthy 30% per annum. As a result most of the leading Indian alcoholic and beverage companies have started firming up their portfolios to include wine (local and imported). Market Entry Strategy Exporters need to take a long-term approach in developing their strategies to access the Indian market. Although Ind ia is a steadily growing market, it is extremely price sensitive.Exporters should establish their own importing follow, fund the import costs, and turn in long term marketing budgets with dedicated sales and marketing staff. In order to succeed it is vital for the exporter to choose an agent or distributor who has a good knowledge of the local market and can effectively communicate with concerned parties, and in particular someone who understands the complex regulations that give way to imported wines. Because of the constraints on advertising wine in India an effective strategy for marketing has to entail a close working relationship with the agent and distributor.The exporter is expected to provide the advertising and promotional material as well as bear the expenses incurred for promotions, tastings etc unless otherwise agreed. Therefore, all expectations of the agent and distributor need to be agreed upon before any formal arrangement is concluded. The brands whitethorn targ et either retail outlets or hotels in order to develop brand identity. High end wines are usually positioned only in the premium segment of 5 star hotels and comprise limited volumes. 9 A focussed approach, with an emphasis on marketing as opposed to sales, is the need of the hour.This approach would help in brand development and brand recall. The company would need to earmark a capital budget in the first 2-3 years for marketing towards brand establishment and development. Till succession no major importer has been able to focus on brand development as they have to sell a number of varieties in order to expand their clientele It is an established fact that in times of recession, the sale of alcoholic beverages and chocolates (in Europe) increases. However, the focus shifts from consumption on premise to off premise and volumes of entry level products increase.Hence the current global and India market scenario sum credibility to the suggestion of establishing a marketing company in India. This company could respond to changing market dynamics more swiftly by shifting focus from high end wines to entry level wines and centering on retail/individual buyers. For further information on the opportunities for wine in the Indian market, please contact the Western Australia Trade military position India.10 ANNEXURES 11 ANNEXURE I MAP OF INDIA 12 ANNEXURE II Major Trade Events INDSPIRIT 30-31 October 2009, The Renaissance Hotel, Powai, Mumbai www. ambrosiaindia.com Indian International Wine Fare celestial latitude 2009 www. iiw. com International Food Expo December 2009 www. ife-india. com India International Food and Wine Show, January 2010 New Delhi www. ifows. com International Hospitality Fair- February 2010 www. internationalhospitalityfair. in Useful Links www. indianwine. com www. indianwineacademy. com www. sommelierindia. com www. thewinesocietyofindia. com www. thewinesociety. org www. fwmclub. com Useful Industry Contacts Mr Subhash Arora, President In dian Wine Academy A-458 Defence habituation New Delhi one hundred ten024 Mbl 09818368428 telecommunicate aroraindianwineacademy.com www. indianwineacademy. com.The Academy produces a weekly newsletter which can be obtained through their website. Dr Jaideep K. Kale Technical Co-ordinator Grape Wine Park, MIDC, trot Center, 2nd Floor, Wakdewadi, Pune-411 003. MAHARASHTRA (INDIA) nomadic 09823381014 Tel. No. 020-25819444/445, fax No. 020-25819446 netmail ronashikmidcindia. org Mr H R Ahuja conductor Win Wine & Beverages Pvt. Ltd. B-204, Rajrudram, Gokuldam Film City Road, Goregaon (East) Mumbai 400063 Tel 91 22 2840 9194 email ahujahrahotmail. com onlywineshotmail. com.Ms Rogita Tiwari Associate Editor Ambrosia 13/D, Laxmi Industrial Estate New Link Road Andheri (W) Mumbai 400053 Tel. 91 2229358083 e-mail sapplbom8. vsnl. net. in www. ambrosiaindia. com 13 ANNEXURE III MAJOR WINE IMPORTERS Although there are probably more than 100 importers in India, the following are the major companies Brindco International Based in Delhi, is reported to have imported around 25,000 cases of wine. They currently have arrangements with approximately 60 wineries from eleven countries including Baron Philippe de Rothschild, E.Guigal, Albert Bichot and Louis Jadot (France) Allegrini, Marchessi di Barolo and Gaja (Italy) Joseph Phelps, Francis Coppola (California) Leeuwin Estate, woman chaser Blass and Peter Lehman (Australia) Brindco is a key vendor to some of the top hotel bonds in India including Taj Hotels and the Welcome Group. Mr. Aman Dhall Managing Director Brindco Sales expressage S35 Okhla Industrial electron orbit Phase 2 New Delhi. 11 00 20 Tel 91 11 4161 6424 Fax 91 11 26 38 8818 Mobile +9198100 72050 E-mail amandhallbrindcolimitd.com Sonarys Co-BrandsThe company imports approximately 20,000 cases of wine per year and assembled a good portfolio of 350 labels from over 45 wineries in 11 countries. Some of the brands Sonarys handle include Arrowwood, Clos du Va l and Robert Mondavi (California ) Montes (Chile) Falvey, Hugel et Fila, Domaine Laroche and papa Jolivet (France) Antiori, Umberto Cesari, Micael Chirlo and Prunetto (Italy) The company has established good connections with most of the upscale tourist hotels in the major cities. Mr Sanjay Menon CEO Sonarys Co-Brands Pvt. Lt.d, 12 Creative Industrial Estate NM Joshi Marg, Lower Parel, Mumbai. 400 022.Tel 91 22 5666 9111 Fax 91 22 5666 9100 E-mail sanjaysansula. com meshwork www. sansula. com 14 Global Tax Free is a family business based in Delhi and import approximately 15,000 cases per year. Their portfolio includes Taylors (Australia) Trivento (Argentina) Concha y Toro of Chile (Chile) Casa Givelli Cassetta and Fontella (Italy) Laurent Premier Jean Claude Boisset , Joseph Droubhin, Rene Barber and Calvet (France) KVW (South Africa) Mr Mukul Mehra President Global Tax Free Traders Inc 87 Sainik Farms, Central Avenue New Delhi.110 062 Tel 91 11 6597 9222 Fax 91 11 2955 2574 E-mai l infoglobaltaxfreetraders,com Web www. globaltaxfreetraders. com Moet Hennessy Based in Mumbai, Moet Hennessy are importing in the region of 10,000 cases per annum. Their portfolio for the most part consists of wines from wineries owned by their parent company, LVMH. They also represent Terrazas (Argentina) Casa Lapostolle (Chile) Green refer and Cape Mentelle (Australia) Cloudy Bay wines (New Zealand) Mr Ashiwini Deo Moet Hennessy (Cape Mentelle) 501 E, Dr A B Road Worli Mumbai 400025 Mbl 98213 12556 telecommunicate ashwin. deoap. moet-hennessy.com self-governing ImpexThe Delhi based importers current portfolio includes Vakdivieso and Santa Ema (Chile ) Lungaroti, Pio Cesare, Fotonari and Mastroberardina(Italy ) Wildekrans Wine Estate (South Africa) Mr Naresh Uttamchandani Sovereign Impex Pvt. Ltd. , C. 15 Safdarjang Dev Area (2 Floor), New Delhi 11 00 16 Email nvuhotmail. com Mobile 91 98110 42416 Web www. sovereignindia. com 15 Sula Although one of the top Indian wine produ cers, the company also imports approximately 10,000 cases per year. To date they have center on importing brands produced by the Constellation Group.The following are currently sold in India Two Oceans ( South Africa) Hardys (Australia) Trimbach, Forrtant and JC Le Roux (France) House of Ruffino (Italy) Sho Chuku Bai (Japan) Mr Rajeev Samant, CEO Sula Vineyard Samant Soma Wines Pvt. Ltd 1 & B2 Matulya core C Senapati Bapat Marg, Lower Parel, Mumbai. 400 013 Tel 91 22 6660 6685 Fax 91 22 2492 6064 Mohan Bros Mohan Bros supplies wine to the diplomatic corp as well as duty free shops and ships chandlers. Mr Rohit Mehra Partner Mohan Bros. Pvt. Ltd. , Plaza Cinema Bldg (2 Floor) Connaught Place, New Delhi.11 00 01 Tel 91 11 4151 3434 Fax 91 11 4151 636 RR International is another supplier of wine to embassies, airport duty free shops, airlines and ships chandlers. They also translate hotels and have boned wharehouses in Delhi and Mumbai. Mr S Garg Director RR International B. 90A g reat Kailash I, New Delhi. 11 00 48 Tel 91 11 2643 1058 Fax 91 11 2623 8354 Munjal Bros. is the Indian agent for Castel and Pernod Ricard of France. Mr Harminder Singh Munjal Director Munjal Bros Pvt. Ltd. , 356 Pappargaj Industrial Estate New Delhi 11 00 92 Tel 91 11 2216 9289 Fax 91 11 2216 9288 16 Aspri Spirits also import wine as well as spirits.They are the Indian agents for Absolut Vodka. Their wine portfolio includes De Bortoli ,Sacred Hill and Windy elevation (Australia) Campari and Cinzano (Italy) Contact details Mr Arun Kumar, Aspri Spirits Pvt. Ltd. , N230 Ground Floor Greater Kailash I New Delhi. 11 00 48 Tel 91 11 4163 3981 Fax 91 11 4163 1713 Mob 91 98104 43440 E-mail delhiaspri. org Web www. aspri. org 17 ANNEXURE IV LIST OF OTHER WINE IMPORTERS AND DISTRIBUTORS A) MUMBAI Mr Ranjit S.Chougule Chief Operating Officer champagne Indage Ltd 82, Indage House Dr A B Road Worli Mumbai 400 025 Tel 91 22 24938718 Fax 91 22 24913435 Email winesindagegroup.com Ms Dharti Desai Founder Fine Wines N More 406, Raheja Plaza, Plot 15/B Parksons Press merge Off new Link Road Andheri West Mumbai 400053 Tel 91 22 4033 0000 Fax 91 22 4033 0100 Web www. finewinesnmore. com.Mr Bruno Yvon National Brand managing director India Clicquot Asia 88 Maker Tower, 8th Floor Cuffe Parade Mumbai 400 005 Tel 91 22 2218 1039 Fax 91 22 2218 0801 Mr Darren Centofanti Managing Director Pick of the constellate 402 B Wing, Haripreet Building Tagore Road Santacruz (W) Mumbai 400054 Tel. No. 91 22 26494114 Emailpickofthebunchgmail. com www. pickofthebunchwines. comMr Vishal Kadakia 47A, Nandjyot Industrial Estate Andheri Kurla road Mumbai 400 072 Tel 91 22 28516621 Fax 91 22 28516626 Mbl9820858618 Emailinfothewinepark. com Web www. thewinepark. com Mr Vishnu G Dev Director South Seas Distilleries & Breweries Pvt Ltd Old Chinoy Bldg, 275 E, Tardeo Road Mumbai 400 007 Tel 91 22 23876068 18 (B) NEW DELHI Mr Narottam Sharma Materials Manager Corporate Hyatt Regency Hotel Bhikaiji Cama Place, Ring Road, New Delhi 110 066 Tel9111 26791234, 26791150 Ext. 1422 Fax. 91 11 26791122, Mobile 91 9811011160 Email narotamsndf. vsnl. in.Mr Bill Marchetti Executive Chef ITC Maurya Sheraton & Towers diplomatic Enclave, New Delhi 110021 Tel. 91 11 26112233 Fax. 91 11 26113333 Email bill_marchettiyahoo. com. au Mr N. K. Piplani General Manager I. T. D. C. Duty Free Shops International Trade Division, 504 fifth Fl. Jeevan Vihar 3 Sansad Marg, New Delhi 110 001 Tel 91 11 32740895 Fax91 11 23341459 / 32740895 Email piplanitheashokgroup. com Web. www. theashokgroup. com Mr Sanjiv K. Singh TT & G Trading Private Limited Managing Director Thapar House 124 Janpath New Delhi 110001 Tel. 91 11 23361369, 23349030 Fax. 91 11 23349029 Email. great_vintagesrediffmail.com Mr Raja Mukherji, Head International Brands Radico Khaitan Limited Plot No. J 1, Block B 1, Mohan Co-op. Industrial Area Mathura Road New Delhi 110 044 Tel 91 11 26975403-09 Fax 91 11 26975339-40 Email Rdccrmpnde . vsnl. net. in Web. www. radicokhaitan. com Ms Firdaus Khan-Chowdhury Mr. Mathieu Villard Directors Francis Wacziarg Group A 50 Nizamuddin East, New Delhi 110013 Tel. 91 11 24355910, 24355901, 24355920 Fax. 91 11 24351112 Email. brandsfwacziarg. com Web. www. fwacziarg. com Mr B. K. Pardal CEO Global Brand Management India 65A exclusive 14 Himgiri Apartments, Kalkaji Extension, New Delhi 110 019 Tel. 91 11 26091993 Fax. 91 11 26093272 Email bkpardalvsnl. net Mr Peter Schatzmann Corporate Director -Food & Beverage The Oberoi Hotels New Delhi Tel 91 11 2389 0594 Fax91 11 2389 0590 Email pschatzmaneih-india. com 19 (C).BANGALORE Mr Abhay Kewadkar Chief Wine Maker United Spirit Limited, 51, Richmond Road, Bangalore 560025 India Tel 91 80 30510600 Email Abhaykewadkarubmail. com Mr Ashwat Rashwat Reddy M/S Saptagiri Enterprises 683, 50ft Road, 3RD Block, 3RD coif BSK Bangalore 560085 Tel (MOB) +91 9844001145, Off 91 80 6791 988, Fax 91 80 6793 504.Mr Prabhu Yalagi Managing Dire ctor Castello Farm Products P Ltd. 257, Hosur Road Wilson Gardens Bangalore 560 027 Tel. No 91 80 56690251 Mr Raja MukherjiHead International Brands Radico Khaitan Pvt Ltd 1203, Regent Chambers Nariman Point Mumbai 400021 Tel 91 22 56359845 (D) GOA I Mr Fransico Montecruz Director Impala Distilleries & Brewery Ltd 33, Amonte New Market, Margaon, Goa Tel 919822388144,9822101149 Tel 91832 2705339 Mr Alto Mundo Alto Mundo Vinhos Impex Pvt Ltd G-3, R-12,, Techno Park, Chogum Road, Porvorim, Goa 403521 Tel 91-9324938638, Email galtomundorediffmail. com.Mr Mario de Sequeria Partner Tonia Agencies Raicho Ambo Raia Salcete Goa 403720 Tel 91 832 2740187 Mb09822102182 Mr Antonio De Silva Partner gallant Spirit Satt Adhar Arcade, Peddem, Mapusa (Mapuca), Goa 403507 Tel 91 832-6516185 20 ANNEXURE V Posted Friday, October 31 2008. 950 India Loses Case in WTO Appeal U. S. Trade Representative Susan C. Schwab announced in Washington yesterday that the World Trade Organization (WTO) appellant cl ay has found in favour of the United States in its challenge against Indias redundant and extra-additional duties on wine, spirits and other agricultural and fabricate products.Indian Wine Academy has insisted all along that the additional duties charged were illegal, according to the WTO agreement. It now appears that India camouflaged the proceedings by not providing full details to the earlier panel and that helped its win the case filed by the US. EU had withdrawn its case after the government had waived Additional Customs Duties on July 4. 2007. However, US had stuck on with the case knowing the intricacies involved with the excised duty structure of states.India had imposed these duties on U.S. imports in addition to and on top of its basic customs duty, resulting in combined duties on imports of alcoholic beverages (beer, wine and spirits) of up to 550 percent. India argued that the duties were permitted because they simply offset certain interior(a) taxes (such as value-a dded taxes). The Appellate Body reversed the panel, which had found that any import charge offsetting an essential tax need only serve the same function as the internal tax and need not be equivalent in amount to that internal tax.In reversing the panel, the Appellate Body agreed with the United States that any import charges aimed at offsetting internal taxes cannot result in a higher amount being charged to imports than to like domestic products. This is an important finale for all WTO Members, particularly at a time when they are negotiating tariff commitments, said Ambassador Schwab. The Appellate Body reversed a deep flawed panel report and reaffirmed a fundamental WTO rule that Members cannot impose duties on imports that exceed their tariff commitments. After the United States initiated the dispute, and in resolution to U. S. concerns, India announced the withdrawal of the additional duty on alcoholic beverages and modifications to the extra-additional duty, which it de lineated to the panel eliminated any discrimination against U. S. imports. We continue to have concerns about whether these measures have eliminated Indias abusive use of additional tariffs, particularly given Indias refusal to produce information to support its claims that the duties merely offset internal state-level taxes.We continue to closely monitor the effect of both actions. The Appellate Body considered that the additional duty on imports of alcoholic beverages and the extra-additional duty on imports of alcoholic beverages and other products would not be justified as offsetting excise duties and other internal taxes on like domestic products insofar as the duties result in charges on imports that exceed those on like domestic products, and consequently, that this would render both the additional duty and extra-additional duty inconsistent with Indias tariff commitments.The cards interpretation would have opened a Pandoras recession by inviting the widespread imposition o f additional tariffs in violation of WTO commitments. Unfortunately, because of Indias refusal to provide information to the panel on its internal taxes including in response to direct quest.