To open a wine shop, contact the local Wine and Spirit Regulatory Authority for an application form. Submit the application form and required documents such as identity and address proof, and financial statements. If the application is approved, the regulatory authority will issue a liquor license. The cost of obtaining a wine shop license depends on the location and license type.
License Types and Fees
- Retail Outlet License: To sell directly to consumers
- Wholesale License: To sell to retailers and restaurants
- Production License: To produce own wine
Annual License Fees:
- Tier 1 cities: INR 10 lakhs
- Tier 2 cities: INR 7.5 lakhs
- Tier 3 cities: INR 5 lakhs
Additional costs may apply for temporary licenses or different business sizes.
Registration and Planning
Business entity and name need to be registered. Create a solid business plan covering aspects like funding, inventory, staffing, and abide by legal rules related to excise standards to avoid repercussions. The Indian wine market has high growth potential.
Yes, owning a beer/liquor shop can be profitable in India. The government earns significant revenue from liquor shops, and there is a strong demand for such businesses, as reflected in the easing of restrictions during the coronavirus pandemic in 2020. Profit margins are higher on imported liquor, and ideal locations include roadside shops, pubs, and restaurant-bars.
Investing in a wine business requires a large investment, and results manifest after years, as wine preparation is laborious. It’s advantageous to have a winery inheritance to avoid the initial investment requirements.
Licensing and Registration for Grape Wine Production
For grape wine production, full-scale manufacturing operations are required. This involves a lot of licensing and registration from government agencies such as:
- PFA Act
- FPO
- BIS certification for ISI mark
- Registration of firm with ROC
- Brand name registration with Trademark
- GST registration with a GSTIN number
Market Prospects
Despite restrictions, online wine stores are providing a wide selection, and strong distribution channels are boosting online sales. The availability of good Indian wine at half the price of imported varieties has increased demand. With wine consumption and knowledge increasing in India, particularly in regions like Nashik district in Maharashtra – a major producer of grape wine – the industry has a bright future.