If you've been wondering why the world suddenly has woken up to India's emerging wine market, the answer is Vijay Mallya. The flamboyant beer baron shook up India's wine market with his recent acquisition of Bouvet-Ladubay, the subsidiary of French wine major Taittinger. He had paid €15 million (or Rs 866 million ) through the Mauritius-based firm Asian Opportunities and Investments for the winery.

In an in-depth article on the impact of the acquistion, The Financial Express reports that Mallya's UB Group will import Bouvet-Ladubay's brands into India and in the coming years, it will import bulk wine and bottle it at its facility at Baramati in Maharashtra.

The winery and bottling facility, according to Mallya, will be set up with an investment of €5 million (or Rs 296 million). Industry observers say the group will use its existing distribution network to push its wine brands. Says an informed source: "The company proposes to begin importing bottled wine between this Diwali [November] and Christmas. By the next festival season, the Baramati unit will begin operations."

For India's Rs 1.5-billion wine industry, the entry of an organised player like UB is a sign of good times. Says Nikhil Vora, Vice-President, Research, SSKI Securities: "Existing wine players in India lack size. UB will change the dynamics of the business." Adds Arun Shah, Group President and Director, Chateau Indage, India's largest winemaker with sales of Rs 720 million and some 5,000 acres of land under grapevine cultivation: "There is room for at least five more players in the wine industry. Players like UB will only expand the business."

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