Mountain View vineyard is showing excellent growth in 2007. The owner of Mountain View Vineyards Mr. Hambir Rao Phadtare (on the picture) informed us recently, Mountain view is doubling up their wine production from 120,000 liters to 240,000 liters and also laid the foundation for bigger growth in the future.
Recently Mountain View is entered in to multi year wine supply deal with Diageo. Under this contract, Mountain View is going to supply Shiraz, Shiraz/Cabernet Sauvignon blend, Rose and Chenin Blanc wines to Diageo. Diageo is planning to market these wines in to the Indian market with Nilaya as the brand name. These wines are expected to be in the market soon.
He also mentioned that the Indian wines are going to be costlier based on several reason mentioned below.
• Due to sudden growth in the wine production, good wine grapes are getting costlier. The cost of the wine grapes are now Rs 35/ per Kg.
• Rate of Interest for the business loan is at 12%
• More and more imported wines are in the market due to gradual reduction in the Import duties. Domestic wineries are getting pressure to improve and compete with imported wines. They are now hiring experience wine maker from abroad and it is costly. Currently Mountain View is planning to spend Rs 20 Lakes to hire two wine makers from France.
• The product cost of the wine comes to Rs 105 per liter. It is very difficult compete with international market due to the high cost.