India’s grape expectations put fizz in global wine market
Traditionally a spirits drinking nation, India’s fast-growing wine market is catching the eye of wine producing countries like Australia. IGTV’s Angeline Ong looks at how investors can profit from India's diversifying taste buds.
Indian thirst to grow
When you think ‘wine’ … you don’t normally think ‘India’.
But, this is why you should.
Indians are developing a taste for the tipple, so much so that investors are sitting up and paying attention.
Sula IPO
Sula, India’s biggest winemaker, recently raised 9.6 billion rupees in its IPO, under a third of that came from anchor investors like Abu Dhabi Investment Authority and Goldman Sachs Group Inc (All Sessions).
You can argue that the IPO, which had bids for more than twice the shares on offer, was weaker than what analysts had penned in. You can argue that India is still largely a spirit drinking nation, but change is in the air.
Diversifying Indian palate
Indians are becoming urbanised, well-heeled and this will only lead to demand for a bigger and more expensive range of bottles.
India-Australia trade deal
India has inked a new trade deal with Australia that will mean gradually lower import duties on wines from Down Under. Many data companies are also signalling rising wine consumption in India in the not too distant future. This can only be a positive to exporters like Australia’s Treasury Wine Estates Ltd.
In terms of a more global view, the global wine map is also shifting, climate change and the Russia-Ukraine war have hit the global wine industry, says the International Organization of Vine and Wine. The Australia-China trade tensions haven’t helped either.
Room to grow
Now, big wine producers, like those in Australia, Italy and France, want to expand in markets, like India and the US, where consumption is still low.
So, when you next hear about investing in anything related to wine and India … it might be worth taking note.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
