GRAPE WINE

TO manufacture good quality wine, the raw material

should be of standard quality.
Popular Qualities:-
Sr.No. White Wine Red Wine
1 Chardonny France,U.S.Itally Pinotnoir France,California

2 Chenin Blanc France, Merlot

California, South Africa

3 Sauvignon Blanc Shiraz

France,California

4 ---------------------------------- Zinfandel
5 ---------------------------- Sangiovese
 General Classification

• Red Wines:- made from grapes without removing

skins.

• White Wine:- Made from grape juice.

• Sparkling wine:- Carbonated white wine.

• The alcoholic content in wines varies from 10-14%.

 Licenses and Permissions

• As per the grape processing industrial policy 2001

Grape wine required following Licenses and
Permissions.
• 1. Permanent small scale registration
• 2. Local authority no objection certificate
• 3. Maharashtra Pollution Control Board’s no objection
certificate.
• 4. Certification under PFA act-Food Product Order.(FPO)
• 5. ISO 9001,HACCP, EMS.
 Market Potential

• The main market segments are-

• Malls and supply chains
• Restaurants
• Clubs
• Health clubs and Diet clinics
• Merchant exporter
• Star Hotels and pubs
• Wine clubs and bars
 Product to be manufactured

• The unit will manufactured various types of

grape wines
• Red Wines White Wine and Sparkling wine
These types will be launched in various packing sizes (in
bottles)
With some suitable modifications this plant can
manufacture mango wine also.
Manufacturing Process

Cleaning and Grading of grapes

Crushing of Grapes

Fermentation

Bulk storage and maturation of wine

Ranking clarification and packaging

 Infrastructure required

• We will consider the minimum production capacity

5000 lit, initially with 10 acres of wine yard.
• i) Plot owned 5000 sq ft.
• ii) Factory shed 1200 sq.ft – leased.
• Iii) Office
• Iv) Water potable grade 1000lit/day.

• The unit will fulfill all hygienic conditions and norms.

 Manpower required

Sr.no. Particulars Quantity

1 Wine master 1
2 Manager 1
3 Skilled labour 1
4 Contract labour As per
requirement
5 Helper 2
6 Sales executive 1
 Project Investments

• Work shed (leased) but required development charges- 0.25 lakhs.

Sr.no. Particulars quantity Price/pc Total price Rs.

1. Complete set De- Steamer, One set 50.00 50.00
crusher, Pneumatic press,
Fermentors, Filter press,
Refrigeration and chillers,
Process pmps, Bottling
equipments, foiling,
labelling machines, water
treatment system and
sparkling equipment

Rs. In Lakhs.
 Fixed Assets

NO. Particulars Quantity Price Rs. In lakhs

1 Shed deposits One time 2.00
Power deposits One time 0.75
Generator set One time 2.25
Electrification One time 0.30
Irrection and commissioning One time 1.00
Licenses fees One time 3.00
Preparative and preliminary Exp One time 2.50
Provision for contingencies One time 1.00
Misc One time 1.00
Total 13.80 lakhs.
 Working capital calculation

• The basic assumptions

• i) 300 days working per annum
• ii)The production capacity of the winery is 10,000 lit P.A.
• Iii) The sale value of 1 lit wine approx.Rs.450/-including packaging
(wholesale selling price)
• Iv) The raw material is seasonal and available for 100 days only
stock will be stored in cold storage for further 50-80 days.
• V) The process cycle will be from 8 to 20 days depending upon the
variety.
• Vi) The cost of raw material will be Rs. 5000/tonn total
requirement will be 300 tonns.
• Vii) Packaging cost per lit will be Rs.25 and cost of wine production
will be approx Rs.120 to Rs150 /lit.
 Working capital calculations for 100 to 150 days.

No. Particulars Stock per cycle Rate (Rs. In Storage Total Rs.
lakh) days (lakh)
1 Raw material 10tonn 0.60/10 ton 300tonn 18.00
2 Packaging material 10000tonn 25.00/lit 1 yr stock 2.50
3 Work in process 10tonn 0.60/10tonn --------- 0.60
4 Stock in finish good 5000 lit Rs.375/lit 6 months 18.75
5 Debtors 5000lit Rs.300/lit 8 days 15.00
Total = Rs. 54.85 Lakh.

This is the total working capital required from this amount, the working capital margin
will be one third of total working capital.
Therefore, working capital margin = Rs.18.28 lakh.
 Cost of Project

• From these calculations, the cost of project will be calculated

as follows,
• Cost of project= Total Fixed Assets+ working capital
• = [0.25+40.00]+18.28
• = Rs.58.53 Lakh.
Source of funds/capital Rising
The total cost of project is Rs.58.53 lakhs and this can be raised
by following means of finance,
1] Owners contribution 30% Rs.17.56 lakh
2]Team loan 70% Rs. 40.97 lakh
3]cash credit from bank Rs. 20.00 lakh
 Financial Assistance scheme

• The project will be financed as priority sector project by

following schemes,
• Ii)The project will get good incentives in the form of subsidies
from APEDA and National Horticultural Board.
 Profitability Calculations
• Total sales Revenue --- Rs.45.00 lakhs., Cost of Production
Sr.no. Particulars Rs.in Lakhs
1 Cost of Raw material 15.00
2 Power cost 1.68
3 Manpower cost 3.72
4 Packaging cost 2.50
5 Production Expenses 0.40
6 Maintenance expenses 0.20
7 Administrative expenses 0.40
8 Testing and analysis expenses 0.20
9 Licenses fees 0.24
10 Selling expenses 2.00
11 Interest an total investment 8.64
12 Rent 0.72
13 Depreciation@10% 4.00
14 Misc Expenses 0.60
Total Rs.40.30 lakhs
• Profit before Tax= (sales Revenue)-(cost of production)
• = (45.00) - (40.30)
• = Rs. 4.70 lakhs
Less provision for tax 20% = 0.94 lakhs
Net profit = (profit before tax)-(Provision Tax)
= (4.70) - (0.94)
= Rs. 3.76 lakhs.
Percentage of profit on sale = 5.36%
 Major Strengths

• 1. Huge Market
• 2. High growth in consumption per yr.
• 3. Strong incentives from government side
• 4. Good potential for export
• 5. can established own brand
 Major Limitations

1. Raw material is seasonal thus practically

project can not working for 300 days.
2. Quality of wine is depend upon raw material
and the master wine maker.
3. High Profile market.
4. Brand building is highly expensive.
THANK YOU