Pre Construction

Planning of Wine
Park in Nashik
MBA(CE&QS) GRP 2, SUB GRP-6
B Sadhana
Krishna Mohan Agrawal
Sushant Kadlag
Shubham Sharma
COMPONENTS OF FEASIBILITY STUDY
Objective
Need Assessment
Data Collection
Site Selection
Financial Analysis
Value Engineering
 OBJECTIVE
To study the feasibility of establishing a Wine
Park in the district of Nashik by carrying out
suitable analysis.
To select a suitable site for the project
considering various factors and prepare a
feasibility report.
 BACKGROUND
Agriculture is the backbone of Indian Economy.
India is second largest producer of fruits and food grains.
Maharashtra is the leading producer of fruits and vegetables
in India.
Nashik s commonly known as Wine Capital of India or
Grape City.
Agricultural wastage in India accounts to a whopping
Rs.87,800 cores per annum (20-22% of total crop
production).
 FOOD PROCESSING: WORLD SCENARIO

90 83
80
80
70
70
60
60

50
Percentage of food processed
40

30

20

10 2.5
0
Phillipines Thailand Brazil Malaysia India

Country

Source: Statistical Yearbook of Food and Agricultural Organization, UN,

2015
Wine Industry: World Scenario
The major world grape producers are Italy, France, Spain,
U.S.A, Turkey, Argentina, Iran, Portugal, South Africa and
Chile.
Unlike India , major grape producers across the world use
75% of their grape production for wine making.
Consumption of Grapes

5 Wine production
9

Distillation of
11 alcohol

Special
applications

80 Table grapes/
raisins

Source: OIV Statistical Report on World Viticulture

(2012)
Wine Industry: Indian Scenario
In India grapes are mainly produce for sale as fresh table
grapes.
Commercial wine grape production in India has only been
in existence since the 1980.
India has 123, 000 acres of vineyards, of which only 1% are
used for wine production.
Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh are
the major grapes growing states. Maharashtra account for
76.61% of total area and 47.55% of total production in
India .
The Indian wine industry has been steadily growing over
the last ten years in terms of exports.
 Consumption of Grapes: India

Table Grape
2.30% 1.50% 1.20% (consumed fresh)
Raisins
15.00%
Export Grapes
Making Juice, Jelly,
Jam and Chocolates
etc.
Wine Production

80.00%

Source: Grape Production in India, FAO

 Indian Wine Export Trend
(Million USD)

Source: Indian Department of Commerce

NEED ASSESSMENT
Introduction of Maharashtra's Grape Wine Policy in
2001 by MIDC.
The demand for wine is on an increasing trend in India.
The district of Nashik has favourable conditions for grape
cultivation like temperature, soil, rainfall, foreign
collaborations and support from State.
The wine exports from India have been on an increasing
trend and also, the import tariffs have decreased since
India joined the WTO, thus providing a vast market for wine
Motivation from farmers side to cultivate grape wines due
to incentives and profits from wineries.
Demand for economic facilities to produce wine and
appropriate training from farmers side .
Huge amount of wastage in agricultural produce
Lack of adequate cold storage facilities in spite of the
abundant produce of grapes in the state
 Grape Wine Policy: Highlights
Declared policy on 19th October, 2001.
Declared wine parks as small scale industry and the area as
Agri Export Zone.
Units will have status of Food Processing Industry
100 % exemption from excise duty for 10 years from 2001
Relief in sales tax levels (from 20% to 4%).
Single window clearance facility.
Licensing procedure for new wine units and wine sales
vastly simplified.
Establishment of Wine Institute to train the farmers and
Maharashtra Grape Board and Indian Grape
Processing Board to promote the industry.
 Agri Export Zone
Area designated for the purpose of developing and
sourcing the raw material, processing, packaging and
preservation leading to the export of produce and
value added product.
AEZ identifies a particular crop grown in an area and
provides and integrates the entire process from
production to marketing.
Objective : To provide remunerative returns to
farmers with a sustainable approach and benefits to
the society as a whole.
 DATA COLLECTION
The Nashik district is situated in the Western.
It is the third largest district in Maharashtra in terms of
area, occupying an area of 15,582 square kilometres
The terrain is hilly with elevation range of 2,0002,400 feet
(610730 m) with an inverse climatic condition with warm
average day temperature of 26 C (79 F) and night cold
temperature of 78 C (4546 F), which are ideal conditions
for the growth of wine grapes.
The yearly rainfall amounts to 700 mm, however majority
of the rainfall is concentrated in the summer season.
The soil condition consists of red laterite with good drainage
conditions and generally with chemical properties suitable
for growing wine grapes. The water quality is also stated to
be ideal for growth of quality wine grapes. Other factors
such as humidity of 86%, microclimatic conditions, land and
water also contributes & is most favorable for grape
cultivation in Nashik. Hence wines produced here are of the
best quality.
Tehsils in Nashik District
 At present there are 45 wineries in the district which has shown
continuous growth in wine production last three years.
The wineries from Nashik contribute to a whopping 80% the
total
sale in the domestic market.
In majority most of the wineries are concentrated in the
Dindori, Niphad & Nashik tahsil.
Tahsil Wise Distribution of wineries in Nashik District
16
16 15

14

12

10

8
No of wineries 6
6

4 3

2 1 1 1 1 1

0
0 Deola
Baglan (Satana) Igatpuri Malegaon 0 Nashik 0
Peint (Peth) 0
Surgana 0 0
Yevla

Tahsil
 Wine Production and Sales in Nashik

300
250 24.78 0.13 Growth Rate in Sales
200 23.84 (%)
136.85
150 0 121.44 Wine Sales(Lakh
97.32 litres)
100 78.59 0.55
0 17.23 27.36 Growth Rate in
50 59.56 production (%)
69.82 88.93 137.66
0 Wine Production(lakh
3 litres)
1 4
20 1 5
20 1 6
20 1
12
3 20
20 1 4
20 01
15
2
20
Year
 Wine Park
A wine park is a place that is set up in acres of blissful land
including mature grape vine gardens and industrial
infrastructure like warehouses, cold storage, etc.
Apart from the basic infrastructure , there are other
attractive facilities like exhibition centre, 3 star hotel/guest
house, grape research institute.
The proposed wine park is of total area 50 hectares and a
capacity of 10 lakh litres .
The infrastructure facilities to be provided are:
1. Grape Plantation and Landscaping
2. Warehousing facility
3. Grape Processing facility
4. Bottling Unit
5. Raw Grape Testing facility
6. Waste Water Recycling
7. Percolation Tank
8. Grape Research and Training Institute
9. Cold Storage Facility
 Additional amenities to be provided are:

1. Exhibition Centre
2. Parking
3. Accommodation (Hotel/Guest House)
4. Bus Terminal
5. Service Roads
6. Electric and telephone line
7. Water Supply line

Type of Project : PPP(Public-Private-Partnership)

SITE SELECTION

Land Use Pattern

1 Accessibility

Social Benefit
Economic
2 Benefit
Land Use Pattern

Source: Nashik Draft Revised Development Plan 2016-2036

SITE 1 : Eklahare, Nashik
District,Maharashtra
SITE 2 : Vinchur, Nashik District, Maharashtra
 Accessibility
SITE Distance from Distance from
Railway Station International
(km) Airport (km)
Eklahare (SITE 1) 7.7 (Nashik Road) 183
Vinchur (SITE 2) 39.4 (Manmad Jn) 228

Land Cost
SITE Land Cost (per Sqft)
Eklahare (SITE 1) Rs 2000
Vinchur (SITE 2) Rs 120

Source : http://www.ascconline.com/midc/midc_rates_land.html
 Social Benefit
SITE Total Number Unemployed
of Literates Population
Eklahare (SITE 293
97
1)
Vinchur (SITE 10637 5394
2) Source: Census 2011

Economic Benefit
SITE NPV Payback Period
(Years)
Eklahare (SITE 1) >0 3
Vinchur (SITE 2) >0 2

..\economic benef
it.xlsx
 SITE SELECTION
SITE ACCESSIBILI LAND SOCIAL ECONOMI TOTAL
TY (W=4) COST BENEFI C BENEFIT SCORE
(W=3 T (W=5)
) (W=3)
Eklahare 3 1 1 3 33
(SITE 1)

Vinchur 2 4 3 3 44
(SITE 2)
Scoring Criteria:
VINCHUR is the best suitable
Unacceptable = 0 site for the proposed project.
Poor =1
Fair =2
Good =3
Excellent =4
VALUE ENGINEERING
Solar Energy: Installation of solar panels in the wine
park to suffice the energy requirement partially ,
including water heating and water pumps resulting in
tremendous savings on diesel fuel.
Rainwater Harvesting: Nearly 25% of the annual
water requirement is met through rainwater ,that can be
harvested at reservoirs placed in the park.
Wastewater Recycling: All waste water generated in
the wine park and hospitality operations is to be
completely released after being processed in Effluent
Treatment plants installed inside the park
Vermi Composting: Upto 40% of the fertilizer needs
can be met by organic compost.
References
Indian Grape Processing Board (2010-2011), Report on the
wine sector India update.
AIWPA. (2012), Project Report on Indian Grape Processing
(Wine) Industry.
Government of India,, Ministry of MSME Brief Industrial
Profile of Nashik District.
Maharashtra Industrial Development Corporation, Wine
Industry of Maharashtra and Present Scenario.
D Kirupavathi, Investing in Indias Emerging Wine
Industry, International Journal of Advanced Scientific
Research & Development, September 2016.
Ann A. Fickle, Raymond J. Folwell, Trent Ball, and Carter
Clary, Small Winery Investment and Operating Costs.
Nashik Municipal Corporation, Nashik Draft Revised
Development Plan 2016-2036.
Directorate of Census Operations, Maharashtra, Census of
India ,2011, District Census Handbook: Nashik.
http://nashik.nic.in/
JBC International Inc. (2008): India Wine Comprehensive
survey of the Indian wine market.
THANK YOU