Prices of imported and domestic wines set to go up by 20-25% as rupee takes a knock.

PUNE: Wine lovers would have to pay more for their preferred glass of wine. Prices of imported as well as domestic wines are set to go up by 20% to 25% due to depreciation of Indian rupee.

Big and small, all the wineries have initiated process of upward revision of wine prices. Rajeev Samat, founder and CEO of Sula Vineyards said: "The increase in prices of imported wines would be more than 15% while the maximum increase in prices of Indian wines would be 5%".

Sangli-based Riona, having joint venture with Italian companies Terre Cortesi Moncaro and Cantina Enzo Mecella, will increase the maximum retail price (MRP) of its wines by 150/bottle to 200/bottle.

"We had taken wait and watch policy since April as the value of rupee was sliding. But now we have started the process of revising prices of imported wines as we cannot bear losses for long," said KT Mane, chief executive officer (CEO) and director, Riona Wines, which imports its wines from Europe. As the peak season of wine sales, from September to December, is just a few weeks away, the hike in prices of imported wines is likely to impact sales.

"Sale of imported wines may decline by about 15% to 20% this year as compared to the last year," said Samant. However, the depreciation of rupee is a good news for Indian wineries. As imported wines become expensive, the demand for Indian wines is likely to go up.

The actual price hike would take about 15 days to a month as wineries have to take government approval for changing the MRP of their products.

Rupee's depreciation will also impact prices of domestic wines, mainly because of the imported packaging material. About 50% of the bottles required for packaging of wines are imported from China and Europe.

Rajesh Jadhav, director of Nashik-based Rajdheer Wines and secretary, All India Wine Producers' Association said: "The cost of packaging material has gone up considerably in last few months. In turn, the import duty has also increased."

Rajdheer has started the process of increasing price of its red wine Glory to 150/bottle from 120/bottle, a hike of 25%.

Source : articles.economictimes.indiatimes.com