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---------------------------------------------------------------------------- "How does one become a butterfly?" she asked pensively. "You must want to fly so much that you are willing to give up being a caterpillar." - Trina Paulus, Hope for the Flowers ---------------------------------------------------------------------------- THIS WAS IN TODAYS NY TImes. June 26 2003 --------------------------------------------------------------------------- ----- A Winery Profits as India Adapts to New Tastes By JAMES BROOKE NASIK, India - Educated in Silicon Valley but seduced by Sonoma Valley, Rajeev Samant decided to come home to these dry hills northeast of Bombay to try making wine in India, a nation where annual wine consumption works out to one teaspoon per person. Six years after planting his first cuttings of sauvignon blanc from France and chenin blanc from California, Mr. Samant has a big problem: "We keep running out of wine." Although wine featured in the Kama Sutra, the ancient Indian erotic classic, wine drinking has not been part of modern mainstream Hindu culture. For one thing, India's traditionally hot and spicy foods tend to overwhelm the subtle flavors of most wines. But Mr. Samant's Sula Vineyards is a runaway success, doubling its output each year since 2000 and still not keeping up with demand. "Last year, our three main wines were out of the market for three months," Mr. Samant, a 36-year-old Stanford University engineering graduate, said at his winery's red-roofed Mediterranean-style headquarters. Nearby, workers labored on additions that will quadruple Sula's capacity to 159,000 gallons a year by January. Sula's success speaks to two factors transforming India's economy: globalization and the cutting of red tape. These new forces are contributing to India's projected economic growth this year of 5 percent, a peppy rate after years of slumber. With 20 million Indians studying or working overseas, this formerly inward-looking nation is increasingly open to new ways of doing things - though many of the old strictures still survive, including a ban on advertising alcoholic beverages. Mr. Samant uses other kinds of marketing to draw attention to his wines, including sponsoring fashion shows in Bombay, where "Bollywood," the Indian mass-audience film industry, is based; wine tastings in Delhi, the political center; and dot-com parties in Bangalore, the center of the rapidly expanding technology industry. "We had hundreds of yuppies tasting our wine," Mr. Samant, a former executive at the Oracle Corporation, said of the Bangalore parties. " Yahoo and Merrill Lynch were our sponsors." The trend Mr. Samant is riding is a fast-growing taste for wine among affluent young Indians. "A lot of young women, from 22 and up, are very much into wine, something you never used to see a few years ago in this country, which is quite socially conservative," he said. "It is more acceptable for a woman to be seen holding a glass of white wine than a glass of whiskey or spirits." Nasik is India's wine capital, and the vineyards spreading over the red-earth hills around the town are evidence of progress in removing official obstacles to enterprise. When he started, "it took us two years to get the winery license," Mr. Samant said. "Today it takes one month." Four wineries have opened in Nasik in the last year, and the state government of Maharashtra has 40 more letters of intent for winery projects. The state's first wine festival is scheduled for August. Remarkably, all this is taking place in a state governed by a party usually regarded as Hindu nationalist - in other words, opposed to foreign influences. In the decade since Mr. Samant started experimenting here, the price of irrigated land has risen twentyfold to one million rupees ($21,500) an acre. With hot days, cool nights and soil that drains well, these mildly sloping hills are producing wines with a "new world" flavor, according to Terry Damskey, a California winemaker who is Mr. Samant's partner and adviser. "Raj is riding something that is going to be very successful, the way the Californian winemakers did a generation ago," Mr. Damskey, who visits Nasik regularly, said in a telephone interview from his home in Geyserville, Calif. Analysts expect Indian wine consumption to grow 20 percent a year through 2007, echoing a trend seen among the emerging middle class in China, another rapidly developing country without a strong wine tradition. Indian consumption is expected to reach 550,000 cases this year, about 8 percent of it supplied by Sula Vineyards. In a country with few corkscrews, much of Sula's work is educational. For example, along with the usual suggestion that merlot be served at room temperature, Sula's brochures add that this "refers to European climates, not Indian!" "I have been to wine shops where they keep the bottle vertical, standing on a shelf, in the sun," said Pradeep S. Pachpatil, Sula's winery manager, as he offered two visitors a taste of Sula's sauvignon blanc. Last April, the Indian Express newspaper called this wine "the most refined Indian white - dry and refreshingly crisp, with just a hint of its spicy antecedents." India's winemaking boom comes during a nationwide push to adjust the economy to the requirements of membership in the World Trade Organization, which India joined in January 1995 with a promise to lower a number of trade barriers gradually. For example, import duties on wine, now as high as 250 percent, are due to fall to 100 percent by 2006. Even with such high duties, imports account for 40 percent of the Indian wine market, in part because vineyards like Sula struggle to keep their wines to world standards without the benefit of a well-developed domestic network of suppliers and support businesses. "Our corks come from Portugal," said Ajoy Shaw, Sula's winemaker, as he walked past stacks of empty clear-glass bottles imported from France. "For the sparkling wine, we order the wire holders from Spain and the gold foils from Luxembourg." To prepare for more competition from imported wines, Mr. Samant has been working to build brand awareness among India's middle and upper-middle classes, who can afford to pay $9 to $15 for a bottle of his wine in restaurants. Though they represent a small percentage of the national population, he said, "1 percent of a billion is 10 million," and their numbers are growing rapidly. After a favorable review last autumn in Wine Spectator, the influential magazine, Mr. Samant shipped some Sula wine to Italy and to San Francisco. He does not need export orders now and would have trouble filling them if he got many, but he said that a "foreign stamp of approval" was valuable publicity at home. "When you don't have a big wine culture, people are not that confident of their instincts about wine," he said, adding that an Indian newspaper article about Sula wine being offered in some French restaurants in San Francisco can have a big impact. "Getting accepted and acclaimed in California means a lot for me," he said. "Ultimately, for a winemaker, psychic rewards are very important. It is not all financial." 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